An Empirical Evaluation of the Effect of Foreign Investment Inflows on Economic Growth in Nigeria (Published)
This study examined the effect of foreign investment inflows on economic growth of Nigeria, using secondary data for the period 2001 to 2018. The study adopted gross domestic product as the indicator of economic growth and the dependent variable, while foreign direct investment, foreign portfolio investment and exchange rate were used as explanatory variables. The data on the study variables covering the period 2001 to 2018 were collected from the CBN Statistical Bulletin. The study employed descriptive statistics and multiple regression analysis technique based on the E-view computer software for analyzing data. The results of analysis revealed that foreign direct investment, foreign portfolio investment and exchange rate had significant positive influence on gross domestic product. Based on the results of the empirical analysis, the study concluded that foreign investment inflows have made the desired positive impact on the growth of the Nigerian economy. However, a lot still need to be done to create conducive investment climate to attract sufficient amount of foreign investors into the productive sectors of the Nigerian economy. The study recommended that the regulatory authorities should formulate policies and create the enabling environment to attract foreign investments into Nigeria.
AN EMPIRICAL ASSESSMENT OF THE MACROECONOMIC EFFECT OF A SHIFT FROM INDIRECT TO DIRECT TAXES IN COTE D’IVOIRE (Published)
This paper examines the long-run effect of a shift from indirect to direct taxes for Cote d’Ivoire using data for the period 1960 to 2006. The residual-based test of Gregory and Hansen (1996) is employed to test for cointegration and the Engle-Yoo (1987) three-step procedure is used to estimate the long-run effect of tax variables on real output. The results reveal that tax burden and tax mix are negatively associated with output, with tax burden having a much greater adverse effect on GDP than tax mix. The effect of the tax mix on GDP is contingent on the level of the tax burden and diminishes as tax burden increases. Our estimates also suggest that up to a threshold level of tax burden of 17.57%, increased direct taxation relative to indirect taxation is associated with decreased output. But beyond this threshold a move from indirect to direct taxes is likely to lead to higher levels of output.