TAX INCENTIVES AND FOREIGN DIRECT INVESTMENT (FDI): IMPLICATION FOR EXPORT PROMOTION INNIGERIA, GHANA AND SOUTH AFRICA, POST IFRS ADOPTION

UGWU, James Ike (2018) TAX INCENTIVES AND FOREIGN DIRECT INVESTMENT (FDI): IMPLICATION FOR EXPORT PROMOTION INNIGERIA, GHANA AND SOUTH AFRICA, POST IFRS ADOPTION. International Journal in Management and Social Science, 6 (9). ISSN 2321-1784

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Abstract

Tax incentives were offered with the aim of attracting investors to invest in a country or to invest in a specific sector of a country’s economy by reducing the burden of taxation. IFRS amongst other objectives is expected to aid in FDI inflow into the adopting country’s economy by enhancing accountability, transparency and comparability of financial reports. FDI is expected to bring about economic growth through technological transfer, access to foreign capital, managerial skill and other spill-over effects. The extent, the above targets have been achieved remains contentious as scholars had varied results from their research. The study therefore, evaluated the contribution of tax incentives towards FDI inflow into Nigeria, Ghana and South Africa as well as the effect of such FDI inflows on those countries’ exports after their adoption of IFRS for the period 1999-2015. Ex-post- facto research design was adopted for the study. Secondary data were collected and analyzed using descriptive and inferential statistics. Findings revealed a positive association between tax incentives and FDI and that FDI had no significant effect on the exports of Nigeria, Ghana and South Africa. There was also, no significant difference in the effect of FDI on exports of all the countries of study in their pre and post-IFRS adoption periods. This implies that the more corporate tax rate is reduced, as well as increase in other tax incentives, the more FDI inflow into those countries and when significant level of FDI inflow have been achieved, the effect on export would become significant. One of the recommendations is that governments of the three countries of study should improve and sustain more tax incentives as that would help in the attraction of the much needed FDI in export oriented industries to enhance economic growth and development.

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Faculty of Management and Social Sciences
Depositing User:	mrs chioma hannah
Date Deposited:	29 Apr 2019 08:06
Last Modified:	29 Apr 2019 08:06
URI:	http://eprints.gouni.edu.ng/id/eprint/1359

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