Chidebelu Chike Orji 1 , Michael Chidiebere Ekwe 2 & John Uzoma Ihendinihu 3
Department of Accounting, College of Management Sciences,
Michael Okpara University of Agriculture, Umudike
1 2 &

The objective of this paper is to examine the determinants of tax productivity in West African
countries from 1980 to 2018. Ex post facto research design was adopted and unbalanced panel
data collected on agriculture value added as percentage of GDP, industry value added as a
percentage of GDP, trade openness as a percentage of GDP, inflation rate, foreign direct
investment as percentage of GDP, gross domestic product per capita growth and population
growth as determinants. Data on total revenue for the period was equally collected and used
as proxy for tax productivity. These data were sourced from World Bank Indicators and
International Centre for Tax development - ICTD/ UNU-WIDER Government Revenue Dataset
2019 and analyzed using panel least squares regression technique. Results indicate that
industry value added, trade openness, foreign direct investment, and population growth have
significant positive effects on tax productivity, while agriculture value added, inflation rate and
gross domestic product per capita growth have negative and insignificant effects. The paper
concludes that the identified factors are critical in shaping tax productivity in West Africa and
recommends practicable tax policy adjustments to remove bottlenecks in taxation of operations
in the agricultural sector, reduce inflationary pressures and promote industrial activities
across all sectors for the needed growth in tax productivity within West African countries.
Keywords: Tax productivity, Gross domestic product, Value added, Trade openness, Inflation
rate, Foreign Direct Investment, Population growth, Total Revenue

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