THE BEHAVIOUR OF TAX REVENUE AMID CORRUPTION IN NIGERIA: EVIDENCE FROM THE NON-LINEAR ARDL APPROACH
No Thumbnail Available
Date
2022
Journal Title
Journal ISSN
Volume Title
Publisher
Economic Studies
Abstract
One of Nigeria’s greatest challenges is the generation of adequate tax revenue to meet
her rising expenditure, and the country has continued to contend with corruption,
particularly in its public sector. We employ the non-linear autoregressive distributed
lag (NARDL) technique to examine tax revenue behaviour amid corruption using
Nigeria’s quarterly data over the 1999-2019 period. The result of the NARDL bounds
test to cointegration demonstrates the presence of a long-run relationship between tax
revenue and corruption along with income level, agriculture, inflation rate, foreign aid
and female labour force participation. The results of estimation indicate the existence
of asymmetry in tax revenue behaviour. We find evidence of a significant positive
impact of negative changes in the control of corruption and a significant negative effect
of positive changes in the control of corruption on tax revenue in the long run. Other
long-run significant determinants of tax revenue in Nigeria include income level,
foreign aid and female labour force participation. Based on these empirical outcomes,
this study offers some recommendations.
Description
Keywords
Tax revenue, Corruption, NARDL technique, Nigeria
Citation
Abu, N., Karim, M. Z. A., David, J., Sakanko, M. A., Ben-Obi, O. A., Gamal, A. A. M. (2022). The Behaviour of Tax Revenue amid Corruption in Nigeria: Evidence from the Non-Linear ARDL Approach. – Economic Studies (Ikonomicheski Izsledvania), 31(4), pp. 55-76.