Effect Of Direct Taxes And Government Expenditures On Money Supply In Nigeria (1987-2016)
ABSTRACT
The study empirically examined the effect of direct taxes and government
expenditure on money supply between 1987 and 2016. Secondary method of
data collection was used to generate data for this study and the sources of the
data included annual reports /accounts and CBN statistical bulletin (2016).
Multiple regression of ordinary least square estimation was the tool used to
analyse the data in this study. In the model, money supply (as dependent
variable) was regressed on personal income tax, government expenditure and
company income tax. The study has revealed that there exists positive and
signfIcant relationship between government expenditure, personal income tax,
company income tax and money supply. This supports the Keynesian view of
government active intervention in the economy using appropriate various fiscal
policy instruments. The study therefore recommends that: Government should
use fiscal policy to complement the adoption of effective monetary policy and
maintain the rule of law to promote stability in the Nigerian economy.
Government should ensure that taxes and government expenditure are properly
managed in a manner that it will raise the nation 's production capacity and
accelerate its growth.
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DURU, V (2021). Effect Of Direct Taxes And Government Expenditures On Money Supply In Nigeria (1987-2016). Repository.mouau.edu.ng: Retrieved Nov 25, 2024, from https://repository.mouau.edu.ng/work/view/effect-of-direct-taxes-and-government-expenditures-on-money-supply-in-nigeria-1987-2016-7-2
VICTOR, DURU. "Effect Of Direct Taxes And Government Expenditures On Money Supply In Nigeria (1987-2016)" Repository.mouau.edu.ng. Repository.mouau.edu.ng, 09 Jun. 2021, https://repository.mouau.edu.ng/work/view/effect-of-direct-taxes-and-government-expenditures-on-money-supply-in-nigeria-1987-2016-7-2. Accessed 25 Nov. 2024.
VICTOR, DURU. "Effect Of Direct Taxes And Government Expenditures On Money Supply In Nigeria (1987-2016)". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 09 Jun. 2021. Web. 25 Nov. 2024. < https://repository.mouau.edu.ng/work/view/effect-of-direct-taxes-and-government-expenditures-on-money-supply-in-nigeria-1987-2016-7-2 >.
VICTOR, DURU. "Effect Of Direct Taxes And Government Expenditures On Money Supply In Nigeria (1987-2016)" Repository.mouau.edu.ng (2021). Accessed 25 Nov. 2024. https://repository.mouau.edu.ng/work/view/effect-of-direct-taxes-and-government-expenditures-on-money-supply-in-nigeria-1987-2016-7-2