Moderating Influence of Government Expenditure and Corruption on the Relationship between Aggregate Tax Revenue and Economic Development in Nigeria
Oziegbe Blessing Ohiremen
Ndukwe O. Dibia
Department of Accountancy, Faculty of Business Administration Abia State University, Uturu, Nigeria.
John Uzoma Ihendinihu Department of Accounting, College of Management Sciences,
This study investigates the joint interaction effect of corruption and government expenditure in the relationship between Aggregate Tax Revenue and Economic Development in Nigeria. Time series data were collected for the period 2008 to 2018 and basic pre and post estimation diagnostics conducted. The set hypotheses were tested based on results obtained using moderated multiple regression techniques. Results indicate the existence of significant positive relationship between aggregate tax revenue and economic development, and between total government expenditure and economic development. Corruption was implicated as having significant negative moderating influence on the relationship between aggregate tax revenue and economic development, while total government expenditure had no interaction effect on the relationship between the two variables. The study concludes that meaningful economic development cannot be achieved in Nigeria without addressing the problem of corruption in tax administration and government expenditure processes, and recommends that government should strengthen
anticorruption agencies to enhance accountability