Tax incentives and industrial productivity: evidence from Nigeria Online publication date: Tue, 15-Dec-2020
by Folarin Alayande
Afro-Asian J. of Finance and Accounting (AAJFA), Vol. 11, No. 1, 2021
Abstract: This study investigates the relationship between tax incentives and industrial productivity in a protected industry. Based on available empirical literature, the nexus between tax incentives and direct investment, on one hand, and tax incentives and production volumes, has been largely established. However, the nexus between tax and within-sector productivity in a pioneer industry may vary across countries. Using data from Nigeria, the study examines the relative importance of tax amongst other industrial incentives in driving productivity within the cement industry. The findings show that while tax incentives may have improved production growth, it is not a significant driver of short-run productivity growth. Conversely, other non-tax incentives such as financing subsidies appear to have more impact on productivity. These findings provide new insight into the nexus between industrial policy incentives and productivity, and suggest that tax incentives may not be sufficient to drive the country's industrial agenda.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the Afro-Asian J. of Finance and Accounting (AAJFA):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook