COMPANY INCOME TAX AND ECONOMIC DEVELOPMENT IN NIGERIA

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ABSTRACT

This work examined company income tax and economic development in Nigeria perspective. Data was collected from the CBN statistical bulletin in Nigeria stock Exchange market. The result was presented in a tabular form of which the error correction model was used to analysis the data collected. The result showed that showed that company income tax exhibited a negative relationship with economic development; also, inflation was found to impact positively on economic development. Interest rate was found to exert a negative impact on economic development. Government expenditure was found to impact positively on economic development. It was therefore recommended that Interest rate should be further liberalized so as to encourage the inflow of foreign capital. This will increase domestic investment and production, including demand for goods and services, there by leading to economic development. It was also recommended that restrictive monetary policy set by government can go a long way in reduces income inequality in Nigeria.

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