Tax Incentives and the Flow of Foreign Direct Investment to Non-Oil Sector: Empirical

Amuka, Joseph I.; Ezeudeka, Fidelis

doi:10.20448/journal.500/2017.4.1/500.1.57.64

Cited by 5 publications

(4 citation statements)

References 6 publications

(10 reference statements)

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“…The results revealed that Nigeria enjoys tax incentives such as the allowance and the initial allowance in free trade zones. This is similar to the findings of Amuka and Ezeudeka (2017), who carried out a research study on tax incentives and the flow of foreign direct investment to the non-oil sector. The study looked into whether the incentive policy had made a significant difference in the pattern of foreign direct investment in the non-oil sector.…”

Section: Empirical Reviewsupporting

confidence: 87%

Tax Incentives and Liquidity Performance of Quoted Industrial Goods’ Firms in Nigeria

2022

EJBM

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This study examined the effect of tax incentives on liquidity performance of quoted manufacturing firms in Nigeria Exchange Group. Expo-facto research design was adopted in the study. The population of the study comprised of 18 industrial goods firms listed in Nigeria Exchange Group from 2012 to 2021. The sample size of 10 firms was selected using purposive sampling technique. Data was obtained from secondary sources through the published financial statements of the companies. Data were analyzed through descriptive and inferential statistics. The result from the analysis of data revealed that tax savings had a significant and positive effect on liquidity performance of companies. The findings also from the study revealed that tax holyday has a negative and insignificant effect on companies' liquidity performance. The study concluded that liquidity performance of quoted manufacturing firms improves at the instant of tax savings. It was therefore recommended that Nigerian government should provide adequate tax incentives for manufacturers in Nigeria in order to achieve the growth of infant manufacturing industries.

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Section: Empirical Reviewsupporting

confidence: 87%

Tax Incentives and Liquidity Performance of Quoted Industrial Goods’ Firms in Nigeria

2022

EJBM

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“…Variants of studies have been conducted to investigate the impact of tax incentives on the pattern of FDI inflows in Nigeria. Interestingly, while the findings of most of those studies tend to be similar and that is that tax policy and incentives have a significantly positive effect on FDI (Amuka & Ezeudeka, 2017;Effiok et al, 2013;Olaniyi, Ajayi, & Oyedokun, 2018;Ugwu, 2018). Other studies found out the contrary (Peters & Kiabel, 2015;Saidu, 2015;Sheedy, Zhang, & Tam, 2017).…”

Section: Background Issuesmentioning

confidence: 90%

“…Unfriendly tax policy or relatively higher tax costs diminish profit which overtime may probably affect the motivation for foreign investment. Amuka and Ezeudeka (2017) asserted that the recent aggressive use of tax incentives in attracting FDI is borne out of the notion that a favourable tax policy will have a positive effect on the flow of FDI into a country.…”

Section: Theoretical Reviewmentioning

confidence: 99%

Attracting Foreign Direct Investment (FDI) In Nigeria through Effective Tax Policy Incentives

Etim

Jeremiah

2019

International Journal of Applied Economics, Finance and Account

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Amidst the conflicting divides of diverse research findings on the effect of tax policy incentives on Foreign Direct Investment (FDI) in Nigeria, the focus of this study was to confirm the fact. Thus an empirical investigation covering a period of 19 years (1999-2017) was conducted to ascertain the effect of cost-based and profit based tax policy incentives on FDI in Nigeria. In line with the ex post facto research design adopted for the study, secondary data were sourced from CBN bulletins and World Bank Database. Multiple regression techniques was used in analysing the three models that were formulated. The findings revealed that although the cost based tax policy incentives had some relatively stronger effect on FDI (with R 2 of .230) compared to profit based tax policy incentives (with R 2 of .045), yet there was no significant relationship found between cost based tax policy incentives, profit based tax policy incentives and FDI in Nigeria. It was therefore recommended that non-tax incentive initiatives should be considered as a necessary complement to the tax policy incentives in order to attract and stabilize FDI in Nigeria.

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“…They found that the response of FDI to tax is negatively significant which aligns with the findings of (Saidu, 2015). Amuka and Ezeudeka (2017) studied the effect of taxes and the flow of FDI to non-oil sector. The study used company income tax as the only tax variable and produced similar results to those of (Babatunde & Adepeju, 2012: Saidu, 2015.…”

Section: Literature Reviewmentioning

confidence: 99%

Corporate Taxes and Foreign Direct Investments: An Impact Analysis

2020

PPAR

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We investigate the effects of corporate taxes on the flow of foreign direct investments (FDI) in Nigeria between 1983 and 2017. The study adopts the ex-post facto research design; secondary data were sourced from the World Bank Development indicator, Central Bank of Nigeria database, and Federal Inland Revenue database. Research data was analyzed using the Error Correction Model (ECM). The coefficient of determination (R 2 ) showed that about 77 percent of the systematic changes in FDI are attributed to the combined effect of all the explanatory variables captured in the study. We find that Company Income Tax, Value Added Tax, and Custom and Excise Duties have a significant but negative relationship with FDI. In contrast, Tertiary Education Tax has a positive association with FDI. Also, Exchange Rate had a negative but significant relationship with FDI; Inflation had an insignificant but positive association with FDI, while GDP growth rate and Trade Openness showed a positive and significant association with FDI. Our findings deviate from previous results, as we find new evidence that a higher Education tax rate influences FDI, and the emerging evidence on the effect of non-tax variables on FDI inflow.

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Tax Incentives and the Flow of Foreign Direct Investment to Non-Oil Sector: Empirical

Cited by 5 publications

References 6 publications

Tax Incentives and Liquidity Performance of Quoted Industrial Goods’ Firms in Nigeria

Tax Incentives and Liquidity Performance of Quoted Industrial Goods’ Firms in Nigeria

Attracting Foreign Direct Investment (FDI) In Nigeria through Effective Tax Policy Incentives

Corporate Taxes and Foreign Direct Investments: An Impact Analysis

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