Tax Revenue, Wage Employment and Economic Growth in Nigeria

Abstract

This study examines the relationship between tax revenue, wage employment, and economic growth in Nigeria from 1981 – 2016 using the OLS technique. Tax revenue was captured by government non-oil revenue, while wage employment and economic growth were proxied by Wage and salaried workers (employees) and real GDP respectively. Empirical results showed that tax revenue, wage employment and foreign direct investment had a positive and significant impact on real GDP, while inflation rate had a negative and insignificant impact on real GDP. On the basis of the above, the study recommended the introduction of more programs like the Voluntary Asset and Income Declaration Scheme (VAIDS). Also, revenue from tax should be invested in projects that would generate employment opportunities for the people, especially the youths.

Keywords: Tax Revenue, Wage Employment, Economic Growth.

DOI: 10.7176/JESD/10-10-11

Publication date:May 31^st 2019