Foreign direct investment and tax revenue mobilization in South Africa: an ARDL bound testing approach

Nghiên cứu này nhằm đánh giá tác động của gánh nặng thuế và tham nhũng đến việc thu hút dòng vốn FDI của 6 quốc gia thuộc ASEAN giai đoạn 2002-2022 bằng ước lượng PMG và kiểm định nhân quả Granger. Kết quả cho thấy gánh nặng thuế làm giảm dòng vốn vào FDI ở các quốc gia ASEAN. Một phát hiện thú vị của chúng tôi là kiểm soát tham nhũng tác động phi tuyến hình chữ “U” đến dòng vốn FDI, có nghĩa, trong ngắn hạn kiểm soát tham nhũng làm giảm dòng vốn vào FDI dưới tác động kiểm soát các hoạt động bôi trơn theo giả thuyết “bôi trơn bánh xe” (Méon & Weill, 2010; Kato & Sato, 2015), song lại là nhân tố cải thiện việc thu hút FDI trong dài hạn do nâng cao tính minh bạch và hiệu quả trong sử dụng vốn. Ngoài ra, chúng tôi thấy được tác động nhân quả một chiều từ gánh nặng thuế đến thu hút FDI và tác động nhân quả hai chiều giữa chỉ số nhận thức tham nhũng với dòng vốn FDI trong dài hạn.

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Effects of Foreign Direct Investment and Trade Openness on Tax Earnings: A Study of Selected Sub-Saharan African Economies

Omodero,

Yado

2024

Economies

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Every economy’s prosperity is determined by the quantity of tax income it receives. Over the years, studies have demonstrated that inflows from foreign investments and openness to international trade are important contributors to a country’s tax income. Based on this assumption, this study seeks to examine the impact of foreign direct investment (FDI) and open trade on tax income in a number of sub-Saharan African nations. The World Bank Development Indicators data on tax revenue, FDI, exports, imports, and exchange rates from 1990 to 2022 are used in the study. We also use the pooled mean group/panel autoregressive distributed lag approach to examine the data gathered for this inquiry. The results reveal that, in the long term, FDI has a significant negative impact on tax income; nevertheless, in the short run, Ghana’s tax revenue collection suffers while other nations profit from FDI. The results reveal that Nigeria’s exporting is detrimental to tax revenue collection, but South Africa’s export of goods and services is beneficial. However, imports and currency rates benefit Nigeria, Ghana, and South Africa in the near term. Thus, the research suggests improving tax rules and administration to prevent the movement of resources by foreign investors out of the host countries in order to avoid the imposition of huge tax burdens on their firms. Countries with low exports, such as Nigeria, are urged to enhance local manufacturing to meet international export standards in order to alleviate the continual negative balance of payments, which is primarily fixed by the adequate export of products and services.

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Foreign direct investment and tax revenue mobilization in South Africa: an ARDL bound testing approach

Cited by 3 publications

References 44 publications

Key determinants of tax revenue in Zimbabwe: assessment using autoregressive distributed lag (ARDL) approach

Key determinants of tax revenue in Zimbabwe: assessment using autoregressive distributed lag (ARDL) approach

Gánh nặng thuế, tham nhũng và dòng vốn đầu tư trực tiếp nước ngoài: Bằng chứng thực nghiệm tại các quốc gia ASEAN

Effects of Foreign Direct Investment and Trade Openness on Tax Earnings: A Study of Selected Sub-Saharan African Economies

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