Programme: Demography and Social Statics

Now showing 1 - 2 of 2

EFFECTS OF PROFIT SHIFTING, TAX HAVEN AND FISCAL SPACE IN DEVELOPING ECONOMIES: EVIDENCE FROM SELECTED SUB-SAHARAN AFRICA
(Covenant University, Ota, 2026-08) PAUL, Samuel Micheal; Covenant University, Dissertation
Losses of domestic revenue and fiscal sustainability have become more critical areas of concern in Sub-Saharan Africa (SSA) as the use of tax haven jurisdictions by enterprises becomes more prevalent and the number of multinational corporations (MNCs) operating in the region grows. Increased demands for expenditure have been met by limited fiscal space available for developing governments to pursue developmental priorities in the face of these challenges. While there is a wealth of literature on tax avoidance in the rest of the world, literature to date on implications for fiscal space in SSA is still limited, with only a few empirical pieces trying to come to terms with the institutional and macroeconomic factors. In this study, hence, the impact of profit shifting and tax haven exposure on fiscal space in selected Sub-Saharan African economies was therefore examined. Specifically, the study looked at the impact of profit shifting on fiscal space, the impact of tax haven exposure on fiscal space, and the effect of government strength, trade openness, resource dependence, and income levels (GDP per capita) on fiscal space. The study employed an unbalanced panel dataset comprising fourteen selected Sub-Saharan African economies over the period 2000–2024. Secondary data were gathered from well-known macroeconomic and fiscal databases from international institutions. For the analysis, descriptive statistics, correlation analysis, Panel unit root tests, the Pedroni cointegration test, the Hausman specification test and the Random Effects estimation technique were utilized. The results indicated that there is a strong impact of profit shifting and tax haven exposure on fiscal space in the economies under study. There was also positive impact of trade openness and a small positive impact of resource dependence on fiscal space. On the other hand, the impact of governances quality and GDP per capita was not statistically strong during the study period. The results indicate that fiscal consequences of international tax practices depend on the institutional capabilities and economic systems of countries. The study builds on the existing literature by offering a long-run panel based evidence on the profit shifting–tax haven–fiscal space nexus in Sub-Saharan Africa. The findings underline the need for country-specific transfer pricing law and tax transparency and for a more strengthened tax cooperation in the region, as well as for country-specific fiscal reform that can contribute to sustainable domestic resource mobilisation and fiscal space for long-term development, from a policy perspective.
EFFECT OF ECONOMIC DIVERSIFICATION AND INNOVATION ON YOUTH UNEMPLOYMENT IN NIGERIA
(Covenant University, Ota, 2026-08) Adamolekun, Omolola Janet; Covenant Univbersity Dissertation
This study examined the connection between innovation, economic diversification, and youth unemployment in Nigeria and evaluated the degree to which innovation and economic diversification had an impact on youth unemployment. This was done in order to investigate the relationship between economic diversification, innovation, and youth unemployment in Nigeria between 1994 and 2024. The study made use of secondary data. Data on youth unemployment (proxy for youth unemployment), scientific and technical journal articles (proxy for innovation), and mobile phone subscriptions were obtained from the World Bank World Development Indicators. However, the Shannon Index (a proxy for economic diversity) and trade openness were calculated using information from the Central Bank of Nigeria (CBN) statistics bulletin, and information on government spending was also obtained from the same source. Data was analysed in accordance with the study objectives using the Augmented Dickey Fuller (ADF) Unit root test, Autoregressive Distributed Lag (ARDL) bounds test for cointegration, and Autoregressive Distributed Lag (ARDL) estimation based on the discovery that variables were at a mixture of orders of integration of zero and one. According to the study's findings, there was a long-term relationship between innovation, economic diversification, and youth unemployment in Nigeria. However, the error correction term showed that 59.80% of deviations from equilibrium are corrected over the long term. Innovation was found to have a significant positive relationship with youth unemployment in the short term and a significant negative relationship with youth unemployment in the long run, while economic diversification had an insignificant relationship with youth unemployment in both the short and long term. Furthermore, whereas government spending was important for lowering youth unemployment in the long run only, mobile phone subscriptions increased youth unemployment in both the short and long term. Additionally, the relationship between innovation and economic diversification had a significant impact on youth unemployment in both the short and long term. However, in the short term, this interaction increased youth unemployment while in the long term it amplified the decline in youth unemployment. Based on the aforementioned findings, the study suggested, among other things, that the Nigerian government prioritise targeted investment in education and skill development, especially in STEM fields, digital literacy, and vocational training; that public spending be redirected toward industries with high employment potential, such as education, technology, and industrial development; and that policies be shifted from access to utilisation of digital infrastructure by encouraging digital entrepreneurship, remote work opportunities, and tech-enabled small businesses.

Programme: Demography and Social Statics

News

Browse

Filters

Settings

Sort By

Results per page

Search Results