Impact Assessment of Taxes and Government Capital Expenditures on Nigeria's Economic Growth.
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This study looked at how taxes and government capital expenditures affected Nigeria's economic growth. Secondary time series data from 1992 to 2021 make up the data set used in this investigation. The Granger Causality Test Result and Autoregressive Distributed Lag Model (ARDL) were employed in the study to describe the relationship's direction. According to the findings, the percentage of changes in the dependent variable that can be accounted for by the independent variables is indicated by the coefficient of determination (R2). Economic growth may be described by changes in the explanatory variables as shown by the model, according to the R2 of 0.614087, or 61%. The dummy variable accounts for 49% of the explanation.
The model is significant at 5%, according to the F-statistic, which suggest the model's overall importance. The F-statistics and its probability (4.177050 and 0.004027, respectively) support this. Therefore, the study comes to the conclusion that taxes and government capital expenditures significantly contribute to Nigeria's economic growth. As a deterrence to others, this study suggests, among other things, that the government impose a death penalty on people who divert funds from the petroleum profit tax and misappropriate government capital expenditures.
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