Determinants of Import Revenue: Evidence from Ghana

Abstract

This paper scrutinizes the determinants of Import Revenue generated in Ghana.  An econometric model in Ordinary Least Square is employed on time series data for the period 1997 to 2014.  This is aimed at measuring the effect of gross domestic product, effective duty rate, import exemption, import value and relative price on import revenue generated in Ghana. The paper also examines the reforms in import revenue administration, reforms in import revenue generation, effect of automation on import revenue mobilization, the performance of import revenue, sources of import revenue leakages and measures to improve the collection of import revenue.   Import revenue is collected by the Customs Division of the Ghana Revenue Authority.   The results reveal a strong relationship between GDP, Import Exemption, Import Value and Import Revenue.    A moderate relationship exists between Effective Duty Rate and Import Revenue.    A negative or weak relationship exists between Relative Price and Import Revenue.   Adjusted R² > 0.8 was obtained and this figure is acceptable for the time series data, coefficients of the independent variables are jointly significant and there is no serial correlation.

Keywords:  GDP, Import Revenue Administration and Reform, Tax Evasion, Tax Avoidance, Tax Expenditure, Effective Duty Rate, Leakages in revenue.