TAX COMPOSITION AND ECONOMIC GROWTH; A COMPARATIVE ANALYSIS OF NIGERIA AND KENYA

Abstract

This article emphasis on tax composition and economic growth: A comparative analysis of Nigeria and Kenya. The Objectives of the study aimed determining the relationship between tax burden and unemployment rate in Nigeria and Kenya, investigate the relationship between tax composition and gross domestic product growth rate in Nigeria and Kenya. to examine the relationship between tax collection efficiency and inflation rate in Nigeria and Kenya. The research design that will be used for this Research is ex-post facto research design to examine the relationship between tax composition and economic growth; A comparative analysis of Nigeria and Kenya. The work employed the OSL regression analysis using E-views 10 software. The article found out the Tax burden is significantly negatively related to GDPGR and positively to UE, while the GDPGR and UE models fit moderately well. It recommends that both countries need to improve tax administration capabilities in order to expand the tax net and boost revenue collection.