DOES GOVERNMENT TAX AND INFRASTRUCTURE DEVELOPMENT INDUCE SUSTAINABLE ECONOMIC GROWTH IN NIGERIA?

Abstract

This study investigates the impact of government tax and infrastructure on sustainable economic growth in Nigeria. The data employed in analyzing the result covers the period 1999 to 2023. The autoregressive distributive lag bound test is employed in estimating the models. The study’s findings indicate a positive and significant on economic growth, indicating that an increase in government tax can trigger increased government revenue which can translate to sustainable economic growth in Nigeria. In the same vein, infrastructure in the short run and in the long run has a positive and significant influence on economic growth, meaning that effective investment in social and economic infrastructure can trigger economic growth. Again, the interaction of government tax and infrastructure increased the sustainability of economic growth. Other results confirmed that balance of payment, public debt, and exchange rate assert a negative effect on economic growth.  Based on the empirical findings, the study recommends that since government tax and infrastructure enhanced economic growth, it then that the government should effectively provide a framework for a sustainable tax system that would ensure reliable sources of revenue to the government and support sustainable economic growth.