Original Research Article | OPEN ACCESS

TAXES AND UNEMPLOYMENT IN NIGERIA

For correspondence:-    

Received: 12 Nov 2017        Accepted: 23 Dec 2017        Published: 31 Dec 2017

Citation: TAXES AND UNEMPLOYMENT IN NIGERIA. Account Tax Rev 2002; 1(1):106-118 doi:

© 2002 The authors.
This is an Open Access article that uses a funding model which does not charge readers or their institutions for access and distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0) and the Budapest Open Access Initiative (http://www.budapestopenaccessinitiative.org/read), which permit unrestricted use, distribution, and reproduction in any medium, provided the original work is properly credited..

Abstract

The study investigates the relationship between taxation and unemployment in Nigeria. The study adopts the quantitative approach. It uses a time series data covering the period 1984-2014 obtained from the database of government agencies. The study employed the Augmented-Dickey Fuller test to analyse the unit roots. The Johansen co-integration methodology was used in testing the co-integration properties of the data and the fully modified OLS was used to estimate the regression. The study found Value added tax and customs and excise duties positively related to unemployment while petroleum profit tax was negatively related. The study recommended that taxes collected be judiciously used to provide infrastructure that will attract employment.

JEL Classification: H200, E240

Keywords: Taxation; Value added tax; Unemployment; Cointegration; time series