Published 2023-07-28
Keywords
- Tax incentive,
- Investment allowance,
- Economic growth
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Copyright (c) 2023 American Research Journal of Contemporary Issues
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
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Abstract
This study examined the effect of tax incentive on economic growth in Nigeria. GDP was used as the dependent variable and investment allowance was independent variable while exchange rate was the control variable. Data were extracted from Central Bank of Nigerian Statistical Bulletin from 1999 to 2021. The data were analyzed and tested with regression analysis via E-view 9.0. From the foregoing analysis, the study found that effect of tax incentive has significant effect on economic growth in Nigeria. To encourage investment in the manufacturing industry, decision-makers and the government should develop and implement laws that increase the percentage of investment support for factories and machinery used in the industry beyond what is acceptable.