In this chapter, we examine the relationship between taxation and economic growth in a resource rich country, using Nigeria as a case study. We explore the linkages between availability of higher resource revenue and lower taxation effort of other revenue categories and the effects of these on growth. Ordinary least square (OLS) estimation technique is employed in estimating the specified model. Also, descriptive analysis is carried out regarding tax trends and tax efforts in Nigeria to determine the effectiveness of existing tax structures, as well to as examine relevant national and cross-country data. Empirical results reveal that taxation has a significant impact on Real GDP growth rates. However, the proportion of tax contribution to the growth rate falls short of the optimal level in terms of the volume of economic activities and value of total output. Nigeria also lags other African countries with respect to tax effort and as such has a huge untapped potential for enhanced revenue mobilisation. We recommend therefore, that the Government should institute an appropriate tax system with an emphasis on broadening the tax base and in some cases, reviewing upwards the tax rates in order to increase the tax effort as well as ensure optimal contribution of taxation towards economic growth and development.Although tax structures vary considerably across countries, the primary objective of any tax structure is to attain maximum revenue and economic growth with minimum distortions. Different countries have different philosophies about taxation and different methods of tax collection. In the same manner, countries have different uses for their revenue which affect growth differently [3]. Agell et al. [4] have argued that the different uses of total government expenditure affect growth differently and a similar applies to way tax revenue is raised. Romer [5] emphasises factors such as 'spill-over effect and learning by doing' by which firms' specific decisions to invest in capital and research and development, or investment in human capital, can yield positive external effects that benefit the rest of the economy. Solow [6], was the first to examine how taxation affects growth. He argued that steady state growth is not affected by tax policy; that is, tax policy, regardless of distortion, has no impact on long term economic growth rates, even if it reduces the level of economic output in the long term. On his part [7], argued that the different uses of total government expenditure affect growth differently and a similar argument applies to the way tax revenue is raised. The economic growth of Singapore for instance can be attributed to low rates of corporate and personal income taxes. Relatedly [8], argue that there exists a structural difference in taxation in developing countries and developed countries. For developing countries, they established that roughly two-thirds 1 Whereas tax revenues are needed for public investments, including in productive and social and other sectors of the economy, taxation can also ham...

Nigeria faces a myriad of development challenges in her efforts to grow the economy, create jobs and achieve the Sustainable Development Goals by 2030. Since independence, the Government has developed many Plans and Strategies, including the current Economic Recovery and Growth Plan, in an attempt to address these challenges. The ERGP, which is broadly aligned to the SDGs, is aimed at improving macroeconomic stability; fostering economic growth and diversification; improving competitiveness; fostering social inclusion; and enhancing governance and security. Recent information, communication and technological advances have led to data -from both conventional and unconventional sources- to be readily available in high volumes and velocity and in a variety of forms, or simply, to a Data Revolution. This paper examines the role of Big Data and Data Revolution in promoting sustainable development in Nigeria, as well the emerging opportunities for Statisticians in this regard. The paper posits that the attainment of the SDGs will be greatly hampered if Statisticians do not ask the right questions; access relevant data information and, crucially, perform deeper analytics around data and information. Statisticians have an important role to play in promoting Nigeria’s sustainable development agenda, but only if they become more entrepreneurial; and adequately master and apply the requisite technical and non-technical skills.

The purpose of this paper is to analyse the potential of the manufacturing and services sectors as drivers of economic growth in Namibia. The paper uses the intersectoral linkage analysis method to identify the industries with the greatest backward and forward linkages. The economy-wide impact of these industries is simulated further using a CGE model. The greatest backward linkages for manufacturing industries were found in meat processing, fish processing, grain milling, basic metals and construction. The greatest backward linkages for the tertiary industries were found in trade and repairs, hotels and restaurants, finance and insurance, and other private services. The greatest forward linkages for manufacturing industries were found in paper and printing, chemicals and rubber, fabricated metals and machinery, and electricity generation and distribution. The greatest forward linkages for tertiary industries were found in transport, communication, finance and insurance, and market real estate and business services. These, therefore, are the sectors that policies could target as they have greatest impact and could enable Namibia to achieve higher levels of growth. Further, simulation results are obtained from a CGE model by introducing direct exogenous increases in the output of the perceived key industries and examining the economy-wide feedback effects.

Purpose – The Government of Namibia has traditionally used fiscal (especially tax) policy as an instrument for annual budget formulation. Marginal tax rates for profits and various income brackets have been changed back and forth in response to changes in economic conditions. However, to date, no attempt has been made to evaluate the effectiveness of these reforms in achieving the broad national economic goals, in general, and the potential effects on government revenue in the short, medium and long-run periods, in particular. The purpose of this paper is to fill this information gap by analysing the implication of the 2008 zero-rating of value added tax (VAT) on basic commodities for aggregate demand and government revenue. Design/methodology/approach – The study uses an analytical framework based on economic theory which posits that in an open economy, which trades with the rest of the world, aggregate demand for goods and services is made up of consumption demand, investment demand, government demand and net exports and that real sector equilibrium is attained when aggregate supply of goods and services is equal to aggregate demand for goods and services. Findings – Using the Namibia Household Income and Expenditure Survey results, the annual loss in government revenue attributable to this policy is, ceteris paribus, estimated to be N$310.4 million. With a marginal propensity to consume out of disposable income of 0.89, total expenditure by households on goods and services is likely to increase by N$276.3 million per annum. In the medium-to-long-run, national income will have increased by N$303.9 million per annum. Taxes which are responsive to changes in the level of national income will have increased by N$85.7 million, compensating for just over one quarter of the estimated loss in government revenue of N$310.4 million. Research limitations/implications – The study has used a partial equilibrium model as opposed to computable general equilibrium model, which provides a consistent framework that meets most of the sectoral and institutional data requirements for the simple reason that a social accounting matrix which can be used readily to connect data from different sources, such as national accounts and household surveys and would thus have been ideal model for analysing the impacts of the VAT tax reform has not been developed for Namibia. Practical implications – The paper provides a number of practical policy options available for government including, but not limited to, increasing direct taxes, VAT rate on specific (luxury) goods and services and statutory VAT rate on all other commodities not zero-rated, other taxes such as taxes; and borrowing from external sources. Social implications – It is established that zero-rating VAT on all the basic commodities in 2008 reduces the VAT paid by all Namibian households by N$310.4 million per year, which represents the annual increase in the disposable income of all households. And with a marginal propensity to consume out of disposable income of 0.89, total expenditure by households on goods and services will increase by N$276.3 million per year. Originality/value – This paper presents the first attempt at evaluating the effectiveness of tax (VAT) policy reforms in Namibia in achieving the broad national economic goals, in general, and the potential effects on government revenue in the short, medium and long-run periods, in particular.