An Empirical Study of Internally Generated Revenue (IGR) and the Economic Growth of Cross River State.

Abstract:

The study empirically examined the effect of internally generated revenue on the economic growth of Cross River State. The specific objectives were: to examine the effect of taxes, licenses and school charges on the economic growth of Cross River State using GDP as a proxy. The data for this study were gathered from secondary sources using Reports of the Ministries, departments and agencies of government. The study employed ordinary least square multiple regression techniques to establish the effect of independent variables such as taxes, licenses, and school charges on the dependent variable which is economic growth. Based on the result, the following findings were made; there was a positive and insignificant effect of taxes on the economic growth of Cross River State, there was a negative and significant effect of licenses on the economic growth of Cross River State, and there was a positive and insignificant effect of school charges on the economic growth of Cross River State. The study recommended that government should increase her revenue in order to fund the capital expenditure of the state. Government should diversify its economy and explore especially the non oil sector of the state economy so as to correct the disparity between revenue and expenditure and reduce the attendant budget deficit witnessed over the years.