ABSTRACT

The objective of this study is to examine the effect of value added tax on economic development in Nigeria. To achieve this purpose, secondary data were used and. The data generated for this study is adopted from Central Bank statistical bulletin 2018 which covered from 2007-2018. The data were analyzed using descriptive statistical tools and multiple regression equation “multivariate analysis”, assisted by the statistical package for social sciences (SPSS version20) in other to test the hypothesis. Base on the findings it was discovered that the relationship of inflation with GDP was found significant and verifies and that the extreme value of inflation either low or high badly hurts the economic growth of the country and between economic growth and interest rate our study shows that in case of Nigeria low interest rate boosts the investment which directly affects the economic growth positively. Therefore, base on the findings we made recommendation that the central bank should emphasize the price stability in a country and should adopt tight monetary policy and When interest rates decrease, then investment increases, and vice versa and as investment Increases, then the company can produce more products that subsequently led by state tax revenue also increased economic growth through increased production will be reflected in GDP and increased in production can be regarded as an increase in GDP.

TABLE OF CONTENTS

Cover page-----------------------------------------------------------------------------------------i

Title page------------------------------------------------------------------------------------------ii

Declaration……………………………………………………………………………………………………………………………iii

Certification…………………………………………………………………………………………………………………………iv

Dedication……………………………………………………………………………………………………………………………v

Acknowledgement………………………………………………………………………………………………………………vii

Table of Contents…………………………………………………………………………………………………………………viii

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Abstract 

CHAPTER ONE: INTRODUCTION                    PAGE

1.1Background to the Study1

1.2Statement of the problem3

1.3Research question4

1.4Objective of the study4

1.5Hypothesis of  the study5

1.6Justification for the study5

1.7Scope of the Study6

1.8 Definition of terms7

CHAPTER TWO: LITERATURE REVIEW

2.1Conceptual Review                                          9

2.1.1      Conceptual Framework27

2.2   Empirical Review           28

2.3 Theoretical Review                                                                             31

2.3.1Theoretical Framework 35           

CHAPTER THREE: RESEARCH METHODOLOGY

3.1 Area of Study37

3.2 Research Design 37

3.3 Population, Sample Size and Sampling 37

3.4   Source of Data and Data Collection Method38

3.5   Research Instruments38

3.5.1 Reliability of Instrument and Validity of Instrument 38

3.6   Re-statement of Hypothesis 38

3.7   Method of Data Analysis 39

CHAPTER FOUR: DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS

4.1      Data Presentation and Analysis   40

4.2      Test of Hypothesis (ses)  43

4.3    Discussion of Findings    48

CHAPTER FIVE: SUMMARY, CONCLUSION, AND RECOMMENDATIONS

5.1     Summary  50

5.2     Conclusion   51

5.3      Recommendations  52

5.4       Contribution to Knowledge                53

5.5      Limitation of the Study   53

5.6    Suggestion for Further Study  54

         Reference