DETERMINANTS OF TAX PRODUCTIVITY IN WEST AFRICAN COUNTRIES

DETERMINANTS OF TAX
PRODUCTIVITY IN WEST AFRICAN
COUNTRIES
OrjiChidebelu Chike, Ekwe
Michael & Ihendinihu John.
Department of Accounting, College of
Management Sciences
Michael Okpara University of
Agriculture Umudike Umuahia, Abia
State.
ABSTRACT
The purpose of the study was to examine the
determinants of tax productivity of West
African countries by using unbalanced panel
data from 1980-2018. The research design
adopted in this study was Ex post facto
research design. The variables used were
total revenue as a proxy for tax productivity
as dependent variable while agriculture value
added as percentage of GDP, industry value
added as a percentage of GDP, trade
openness as a percentage of GDP, inflationBook of Abstract
Accounting and Finance Research Association
rate, foreign direct investment as percentage
of GDP, gross domestic product per capita
growth and population growth as proxies for
determinants as independent variables. Data
for all the variables were obtained from
World Bank Indicators and
International Centre for Tax development -
ICTD/
UNU-WIDER

  1. NATURAL RESOURCE
    ACCOUNTING, AUDITING AND
    REPORTING GAPS: THE
    NIGERIAN EXPERIENCE
    Bassey Eyo Bassey 1* ; Ashishie Peter Uklala 2 ;
    Alice Urom 3 ; Alfred J.M. Edema 4 ; Innocent
    Obeten Okoi 5 ; Bassey Ina Ibor 6 ; Inyang Ochi
    Inyang 7
    Government
    1, 2, 3, 5, 6 & 7 Department of Accounting,
    Revenue Dataset 2019. Data for Panel least
    square fixed effects model was used in
    analyzing the data as it is preferable to
    random effects model based on Hausman
    test. The results of the panel fixed effects
    model showed that agriculture value added,
    inflation rate and gross domestic product per
    capita growth have a negative and
    insignificant effect on tax productivity,
    industry value added, trade openness, foreign
    direct investment, and population growth
    have a positive and significant effect on tax
    productivity. The study recommends that
    West African countries should come up with
    such practicable policies and programs that
    would encourage the development of the
    agricultural sector to make it less difficult to
    tax, enact policies that can promote industrial
    production and also strive to bring small
    industries into medium and large industries.
    This will increase direct tax through corporate
    income tax, indirect taxes through VAT, excise
    duty on domestic products.
    Keywords: Determinants, Tax
    productivity, panel regression, Fixed
    effects model

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