Journal • CITN Journal

Editorial Board

Editor-in-Chief

Professor Rafiu Oyesola Salawu

Department of Management & Accounting, Faculty of Administration, Obafemi Awolowo University, Ile-Ife

Managing Editor

Professor Godwin Emmanuel Oyedokun

Department of Management & Accounting, Lead City University, Ibadan, Nigeria

Editorial Board Secretary

Mary-Fidelis Chidoziem Abiahu

Director, Research and Professional Standard, Chartered Institute of Taxation of Nigeria

Editorial Board Members

Professor Chinedum Nathaniel Nwezeaku

Federal University of Technology, Owerri

Professor John Adeoti

Nigeria Institute of Social and Economic Research (NISER), Ibadan

Professor Uche Jack-Osimiri

Faculty of Law, River State University, Port Harcourt

Professor Aruwa Suleiman Akwu-Odo Salihu

Nasarawa State University, Keffi Nasarawa State Nigeria

Dr. Eiya Ofiafoh Ofiafoh (Associate Professor)

Department of Accounting, University of Benin, Benin City, Nigeria

Dr. Stephen Chukwuemeka Mark Abani

MCSA Worldwide Projects Limited, Abuja, Nigeria

Dr. Kenny Adedapo Soyemi

Department of Accounting, Olabisi Onabanjo University, Ago Iwoye, Ogun State, Nigeria

Professor Joseph Uchenna Uwaleke

Department of Banking & Finance, Nasarawa State University, Keffi Nasarawa State, Nigeria

Barrister Chukwuemeka Eze

Faculty of Law, Nasarawa State University, Keffi Nasarawa State, Nigeria

Mr. Simon Nwanmaghyi Kato

Federal Inland Revenue Service, Chairman’s Office, Abuja, Nigeria

Volume 24, Issue 2

Description

MODERATING EFFECT OF CORRUPTION ON THE NEXUS BETWEEN TAX REVENUE AND HUMAN DEVELOPMENT INDEX OF WEST AFRICAN COMMONWEALTH COUNTRIES

Authors

Onyekachi Silvia Nwakaego

Abstract

Effective tax administration should generate substantial revenue for the government and contribute to economic development except when disrupted by factors such as corruption. This study explored the disruptive role of corruption in weakening the link between tax revenue and human development index (HDI) in West African Commonwealth countries. Built upon the altruistic behavior theory of taxation, the study argued that the conversion of tax revenue to human development can encourage greater tax compliance in developing economies such as The Gambia, Ghana, Nigeria and Sierra Leone. Secondary data on tax revenue, human development index, corruption perception index and four control variables were collected from 2003 to 2022. Based on the outcomes of the preliminary diagnostics analysis, Westerlund co-integration and panel fixed effect regression with Driscoll-Kraay standard errors was estimated for the long-run relationships and short-run dynamics respectively. Findings suggested absence of significant long-run relationships as the group and panel statistics yielded probabilities of above 5%, but tax revenue had significant effect on the HDI of the sampled countries in the short run. In addition, corruption was found to have significant negative interaction on the link between tax revenue and HDI. Therefore, the study concluded that corruption is a major impediment to the growth and development of West African commonwealth nations which must be urgently addressed to enhance the region’s progress. It was recommended that the region should tackle corruption decisively to boost government revenue through taxation, and ensure effective channeling of economic resources to development instead of increasing tax rates.

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