Non-oil Revenue Research Articles

Measuring and Analyzing Selected Determinants of Public Debt in Iraq (2004-2019)

This study examines the measuring and analyzing selected determinants of public debt in Iraq from 2004 to 2019. It first reviews the major events that led to deterioration of the state’s capacity in preventing risky borrow- ings before the fall of the Ba’ath regime. It then turns to the period under study, and applies the Fully Modified OLS )FMOLS( cointegration framework based on data from the central bank of Iraq. The main results show that public debt has been caused by a mixture of factors including a small share of non-oil revenue, increasing operational expenditure at the expense of investment expenditure by the government, and the ISIS attack. It also touches on the link between sectarianism and public debt, and explores the burden of debt services on ac- cumulating public debt. It concludes that there is always a risk of increasing budget deficit; thus, a proper plan for managing public debt is vital to prevent a debt default.

Nonlinear Fiscal Multipliers in Saudi Arabia

This paper presents an estimation of the fiscal multipliers for Saudi Arabia, conducted by applying the local projection (LP) method. It also presents an exploration of the non-linear features of fiscal multipliers. The findings showed that (i) consistent with earlier studies, fiscal multipliers are generally moderate; (ii) the investment spending multiplier is larger in magnitude than the current spending multiplier; (iii) the non-oil revenue multiplier is negative; (iv) the output response to fiscal shocks is larger during expansions; and (v) fiscal multipliers are stronger during a contractionary fiscal policy phase.

THE ECONOMICS OF EXPORTING THE MOST IMPORTANT SUDANESE OILSEEDS DURING CORONAVIRUS

This research aims to identify the economic situation for exporting the most important Sudanese oilseeds in shade of the Corona virus during the period (2018-2021). This research also aims to study export quantities and know the export price of sesame and groundnut crops، considering them the most important oil crops in Sudan, where the sesame crop occupies the first place among Sudanese crops exports by 71%, followed directly by the groundnut crop, in the second place in terms of the exported quantities, with an average of 29.5% during that period. The research also aims to know and explain the best export markets for them according to their geographical distribution, and then reach the optimal distribution of these exports among the importing countries, which achieves the highest return. The importance of this research comes in the fact that the foreign trade sector is considered one of the most important economic sectors in Sudan, because the issue of export is among the most important goals of comprehensive economic development in the country, and the agricultural sector represents the main pillar to support the Sudanese national economy, as it contributes to the gross national income. At an average rate of about 46.4% and it provides 60% of job opportunities .It is the second sector in terms of its contribution to exports, as it contributes 90% of the proceeds of non-oil revenues, according to the reports of the Central Bank of Sudan for the year 2021. But the problem lies in the fact that the export of oilseeds seemed to fluctuate between rise and fall from one period to another and from year to year as a result of many global variables that affected Sudanese trade, the most important of which was the appearance of the Corona virus, in addition to the appearance of global markets with a high competitive ability, as in this period (2018-2021). The price of the local currency rose sharply against the prices of foreign currencies, especially the dollar, which led to an increase in the prices of some commodities, Services and costs of local production inputs .This research will cover the introduction, main and secondary objectives, importance, research problem, theoretical framework for some concepts related to oil crops, research method and analysis, data sources, recommendations and proposals, list of sources and references

Improving automated pallet handling procedures at a Saudi milk factory through overall equipment effectiveness

PurposeSaudi Arabia's 2030 vision targets an increase of 34% in non-oil revenue participation in the GDP, thus the need for automation and digital transformation. The Company ER is a market leader producing high-quality dairy products in the Kingdom and is a pioneer in the production industry. The company has recently increased the capacity of its milk factory to meet its vision. An investment was made to automate the pallet handling procedures at the milk factory to provide increased production for daily consumption. The new automation transition in Company ER's milk factory provides a unique opportunity to utilize lean management tools to improve the current automated processes before commercialization.Design/methodology/approachOEE (overall equipment effectiveness) will monitor losses for different operational losses in the new automated system and indicate system improvements, with 85% as the target. Based on DMADV (design, measure, analyze, design and validate) methodology, this study analyzes the entire automated pallet handling system. It uses lean tools to identify areas for improvement, identify waste elements and propose solutions to achieve Company ER's OEE targets.FindingsIn this paper, the outcomes will be presented as documented solutions that address the losses encountered in the production system, showing a 12.8% increase in the system's OEE.Research limitations/implicationsOwing the time and resource constraint, this study only involved automated pallet handling procedures in a milk production facility. Hence, the generalization of the result is slightly limited. More studies in several different processes and sectors are required.Practical implicationsThis study provided a valuable tool for researchers for gaining deeper understanding regarding the lean manufacturing and its implementation. For practitioners, it is useful to evaluate the degree of lean manufacturing tools in their material handling systems.Originality/valueThis study is the first attempt to develop lean manufacturing constructs for evaluating the automated pallet handling procedures in a milk production facility.

OIL AND NON-OIL REVENUE AND THE NIGERIAN ECONOMY

This study examined the effect of the effects of Oil and Non-Oil revenue (ONOR) on the Nigerian economy from the period of 1994 to 2021 (28years). Specifically, the measures of Oil and Non-Oil revenue, namely; Total Oil Revenue (TOR), Total Non-Oil Revenue (TNOR) and Total Revenue (TR) were analysed in relation Nigerian economy proxied Real Gross Domestic Product (RGDP). In a bid to actualize the research objectives, data was collected from the secondary source of data (time series data), from the CBN statistical bulletin and Annual Report for the period 1994-2021’. The data were analysed using descriptive statistics, followed by the correlation analysis in bids to ascertained the co-movement of the measures ONOR {TOR, TNOR and TR} in relation to the Nigerian economy proxied with RGDP and several diagnostics tests conducted in the bids to ascertain if the data are suitable for regression analysis with the aid of E-VIEW version 9. 0. It showed that; TOR with an associated p-value (sig. value) of 0.0000. This implies that TOR has a major significant effect on RGDP; TNOR with an associated p-value (sig. value) of 0.0097. This implies that TOR positively and significantly affects RGDP in Nigeria and TR with an associated p-value (sig. value) of 0.0000 in the multiple regression results. This shows that the impact of TR on RGDP is significant. The results show that the measurements of ONOR {TOR, TNOR and TR} used in this research has significant effects on the RGDP in Nigeria. Therefore, the study came to the conclusion that ONOR have a considerable effect on the expansion of the Nigerian economy. Recommended that improve revenue generation through non-oil operations, it is high time the government looked into the development of the sector which has wider opportunities for growth. This can be achieved through diversification to create more avenues through which the government can generate revenue to meet its financial needs.
 Keywords: Oil, Non-Oil, Revenue, Economy and Government.

Assessment of the Impact of Government Revenue Mobilisation on Economic Growth in Nigeria

Abstract Inadequate revenue generation impedes economic growth. It retards the overall economic growth and behavior. It delays government decision formulation on expenditure. The issue has lacked attention from academics. Consequently, this study focuses on the relationship between revenue generation and economic growth in Nigeria. It employed time series data sourced from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) from 1981–2018. Contributing to the debate on the revenue mobilization and economic growth nexus, the study used multiple regression to estimate the impact of government revenue mobilization on economic growth in Nigeria. Findings revealed that domestic debts and non-oil (NOIL) revenue positively and significantly impact economic growth while external debts and oil revenue revealed otherwise. Based on the findings, the study concluded that government revenue impacts economic growth. Consequently, the study recommends economic diversification through strategic programs aimed at enhancing growth rather than remaining a mono-economy. Furthermore, it recommends that the government should review the existing revenue mobilization strategy– especially the multifarious non-oil revenue bases to ensure improved revenue remittances. The study also recommended the need to formulate policies that will guarantee better utilization of both domestic and foreign loans with the aim of increasing productivity and enhancing revenue mobilization. It is also recommended that borrowing should be considered a last resort to fund government projects, and where it is unavoidable such borrowing should be limited to domestic debt (DD).

Implication of Non-Oil Revenue on Macroeconomic Performance in Nigeria

This study examined the implication of Non-oil revenue on macroeconomic performance in Nigeria for the period of 1990-2020. The study employed secondary time-series data The estimation techniques include Ordinary Least Square (OLS) method, while standard error tests (SE), analysis of variance (ANOVA) are used to test hypotheses. Findings indicated that agricultural trade value, services export, Real interest rate, and credit to agriculture had a positive impact on non-oil revenue while employment in agriculture indicated otherwise. The study recommends that the government should ensure resources are channeled to agricultural-based exports Hence drive foreign exchange earnings through agriculture outputs, hence making the sector more viable and the financial sector should formulate more realistic agricultural driving policies that will enable more availability of credit to the agricultural sector for expansion.

Non-Oil Revenues and Economic Growth in Nigeria

Non-Oil Revenues and Economic Growth in Nigeria

Evaluating the impact of non-oil tax revenue on Nigerian economic performance

This study is focused on investigating whether there is any significant relationship between non-oil tax revenue and Nigerian economic performance from 1985 to 2071. Data for this research study were secondary sources generated from the annual reports and statements of the Federal Inland Revenue Service, the Nigerian Bureau of Statistics and the Central Bank of Nigeria. The ordinary least square was used to evaluate the strength of the relationship between the variables. The results of the analysis show a positive and significant relationship between companies’ income tax and gross domestic product; however the relationship between personal income tax and gross domestic product is only positive but not significant. The study concludes therefore that non-oil tax revenue has the potential to improve Nigerian economic performance as the explanatory variables indicated a positive signs. Based on the findings and the conclusion drawn, the study recommends among others that the Nigerian government and its revenue agencies should redefine the existing policy on company income tax by having intensified policy direction aimed at encouraging diversification and entrepreneurial development especially in the tourism, entertainment, information communication technology, medical services and solid mineral sectors. Policy direction should also be geared towards the development of the manufacturing and agro-allied sectors. This will not only expand the tax base but also boost the gross domestic product and by extension the economic performance. For personal income tax, it is recommended that tenet of fiscal transparency and accountability of revenue mobilized for the betterment of the people should be employed and implemented to encourage taxable persons to voluntarily and honestly disclose their aggregate incomes for tax purposes.

The causative relationship between natural resource rent and economic growth: evidence from Ghana’s crude oil resource extraction

PurposeWhile the relationship between natural resource rent and economic growth is well documented in the literature, not much robust analysis has been done to estimate the causative relationship between oil resource rent and economic growth in Ghana. This might be due to the fact that commercial production of crude oil started not long ago in Ghana. This paper aims to examine the causal relationship between oil resource rent and economic growth for the period of 2011 to 2020 in Ghana.Design/methodology/approachThe study incorporates economic growth as a function of oil resource rent, non-oil revenue, foreign direct investment, capital and interest rate in a Cobb–Douglass production function/model. The study used four different estimation strategies including the autoregressive distributed lags model, Toda–Yamamoto test approach, nonlinear autoregressive distributed lags model and nonlinear Granger causality.FindingsThe main finding revealed that 1% increase in oil resource rent generates 0.84% increase in economic growth of Ghana in the long run. Contrary, the authors find an insignificant positive effect of oil resource rent on economic growth of Ghana in the short run for the period under study. The result from the Toda–Yamamoto test approach also showed a unidirectional causality running from oil resource rent to economic growth of Ghana, providing evidence in support of the resource blessing hypothesis in Ghana. The results are robust to two different alternative estimation strategies.Originality/valueThe causal relationship between crude oil resource rent and economic growth is examined.

Modeling the effect of crude oil production and other factors on Nigeria’s economy: an autoregressive distributed lag approach

The overdependence on crude oil has produced susceptivity to every part of the Nigerian Gross Domestic Growth (GDP) and there was the need to examine the effect of crude oil on the economy of Nigeria. This study, therefore, investigates the long-run effect between oil revenue, oil price volatility, and economic growth in Nigeria. The data on oil revenue, non-oil revenue, oil price volatility, and per-capita income from the year 2006 – to 2020 extracted from the Central Bank of Nigeria (CBN) Statistical Bulletin was applied in this research work. The research applied Descriptive Statistics, Augmented Dickey-Fuller Unit Root test, Johansen cointegration, and Autoregressive Distributed Lag (ARDL) co-integration statistical method to examine the long-run effects of crude oil production on Nigeria’s economy. It was discovered from our result that; oil revenue plays a remarkable role in Nigeria‘s economy by its advancement of the country’s GDP. Furthermore, Nigeria has regulated oil revenue to accomplish economic growth in numerous ways. The study recommended that the Nigerian Government should diversify its export supply through downstream production and encouragement of more private sector participation.

Government Revenue and Economic Performance of Nigerian Economy (2000 – 2019)

The government of Nigeria has of recent encountered dwindling revenue generation due to the global economic crisis and COVID-19 pandemic, thus making it difficult for the government to finance its expenditures and subsequently not achieving the desired economic growth. This paper therefore examined the correlation between government revenue and economic performance of the Nigerian economy. The paper employed a mix of descriptive cum historical approach. Time series data spanning 2000 - 2019 were obtained and used. The sources of data were the Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS) and Federal Ministry of Finance. Data were subjected to analysis and testing by means of Ordinary Least Square (OLS) multiple regression technique. Results revealed that significant positive relationship exists between the explanatory variables and explained variable. Arising from the findings, the paper made recommendations which include, among others, government’s intensification of its policy of economic diversification from the oil sector to non-oil sectors so as to increase and sustain non-oil revenue; formulate enabling tax policy that will increase tax revenue as well as strengthening the anti-corruption institutions with a view to alleviating corruption which constitute monumental leakages in the revenue generation process.

Side Effects of Increasing Non-Oil Revenue in Net Oil-Exporting Countries: Empirical Evidence from Saudi Arabia

Side Effects of Increasing Non-Oil Revenue in Net Oil-Exporting Countries: Empirical Evidence from Saudi Arabia

كلية الادارة والاقتصاد / جامعة صلاح الدين / اربيل

The research aims to diagnose the obstacles that hinder the implementation of the economic reform program in the Kurdistan Region - Iraq, with reference to the reasons for the failure of previous economic reform programs in the region, and to indicate the extent of citizens’ confidence in implementing the economic reform in the region, as well as evaluating the economic reform law of the new government for the year 2020. The research reached a set of results, including: 1- There is no time limit for implementing the economic reform process. 2- Efficient and specialized cadres in the field of economic reform were not relied upon when forming committees to implement economic reform decisions. 3- The absence of a monitoring committee to implement economic reform decisions. 4- The project did not extend to the national domain, and receded within the partisan domain. 5- Weak desire for real economic reforms on the part of the ruling parties. 6- The previous economic reforms project did not include all governorates in the Kurdistan Region, but was reduced to the governorates of Erbil and Dohuk. The research concluded by presenting a number of proposals, including: 1- It is the responsibility of the regional government to deposit all revenues, whether oil or non-oil revenues, in the banks affiliated with the Ministry of Finance and Economy. 2- Distributing a share (petro dollars) of the revenues of the Ministry of Natural Resources to the oil and gas producing areas, with the aim of enhancing services provided to citizens and raising the standard of living for the residents of these areas. 3- Activating the role of the Financial Supervision Bureau and the Integrity Commission in the Kurdistan Region. 4- Develop comprehensive planning for the development of all oil fields in a fair manner, without giving preference to the region over other regions

الجامعة المستنصرية / كلية الادارة والاقتصاد

The Iraqi reality misses the foundations of good governance in Iraq, as well as the comprehensive development programs that produce economic and financial reforms, especially in the federal budget, which is characterized as a fragile, weak and vocal budget. Therefore, it came as a modest attempt to shed light on the justifications for achieving good and good governance and efficient planning for the federal budget in its expenditures and revenues. The public, which contributes to building the state and achieving sustainable development that helps solve the main community problems, reduce poverty indicators, reduce unemployment, provide housing and basic services for all components of Iraqi society, and one of the doors to good and rational governance is the efficient management of the federal budget in Iraq, which is represented by efficient planning for managing public money. And protecting it from corruption is in addition to the many problems that fiscal policy suffers from, including weak non-oil financial revenues and dependence on oil revenues, and the growing deficit in budget planning and reliance in particular on foreign debt in the face of the deficit, and solutions are not impossible but need a national administration to achieve them.

Causality Analysis of Non-oil Tax Component of Government Revenue, Company Income and Transaction Taxes: Evidence from a Third World Developing Economy

Overtly, the colossal infrastructural deficit occasioned by the ever increasing population of Nigeria requires sizeable revenue strings if they must be copiously addressed. Largely, the country has over time relied on oil revenue to carry-out her sacred duty of welfare and security provision along with efforts targeted at guaranteeing freedom of her citizenry amongst others. With the recent global drop in oil prices, there has been a general call for government to reinforce other channels of revenue generation so that the country can weather the tides of economic turmoil. This however calls for an understanding of the interrelatedness of various components of accruable revenue to the government through a causality study of such revenue components. This study thus focuses on a causality analysis of non-oil tax component of government revenue, company income and transaction taxes by obtaining empirical evidence from a third world developing economy – Nigeria. Time series data for 15 years were analysed based on the study's intent and with the use of relevant statistics like the unit root tests, chow test, granger causality test, least square and auto regressive regression analysis. Our study's outcome proved that while federally generated revenue proved to have been significantly improved by revenue from income taxes and stamp duties, the tax policies and their subsequent amendments could not exert significant influence on non-oil tax revenue of government during the period. On this note, we recommend the need for effective policy pertaining to Stamp Duties and Companies' Income Tax (CIT) along with a marginal reduction in tax holidays of companies to the extent that the Stamp Duties' Act (SDA) is fully enforced/implemented vis-à-vis strict penalties for non-compliance. Outcome from this research has policy implications which stand to benefit regulatory bodies/policy makers, tax consultants, academics and key stakeholders as it presents key issues relating to CIT, SDA, and non-oil revenue of Nigeria's government.

Expected economic impacts of income tax in Saudi Arabia: Macroeconomic analysis: الآثار الاقتصادية المتوقعة لضريبة الدخل في المملكة العربية السعودية: دراسة تحليلية للاقتصاد الكلي

The study aims to predict the macroeconomic effects of income tax in Saudi Arabia to diversify government income flows and increase non-oil government revenues. The research approach is based on using the dynamic general equilibrium model of the Saudi economy to achieve the results of simulating the scenario of applying income tax by 5% during the period (2020-2030). The results exhibit that income and profit tax reform showed positive results when transferring revenue through government transfers to households. A 5% income and profit tax are expected to improve GDP performance by 0.12%. Macroeconomic indicators, including consumption, investment, exports, and imports, are also improving slightly. Government revenues have enhanced due to the implementation of this scenario, and non-oil revenues are expected to increase from 370 billion Saudi riyals in 2020 to about 568 billion Saudi riyals in 2030. This will increase the contribution of non-oil revenues to total government revenues from 47% in 2020 to 57% in 2030. If income from income tax in the economy is transferred through government transfers to households, this will improve economic welfare.

Assessment of the Impact of Government Revenue Mobilisation on Economic Growth in Nigeria

Inadequate revenue generation impedes economic growth. The issue has lacked attention from academics. Therefore, this study focuses on the relationship between revenue generation and economic growth in Nigeria. It employed time series data sourced from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS) from 1981-2018. The study used multiple regression to estimate the impact of government revenue mobilization on economic growth in Nigeria. Findings revealed that domestic debts and non-oil revenue positively and significantly impact economic growth, while external debts and oil revenue were otherwise. The study concluded that government revenue impacts economic growth. Consequently, the study recommends economic diversification through strategic programs to enhance growth rather than remaining a mono-economy. Furthermore, it recommends that the government review the existing revenue mobilization strategy– especially the diverse non-oil revenue bases to ensure improved revenue remittances. The study also recommended formulating policies that will guarantee better utilization of domestic and foreign loans to increase productivity and enhance revenue mobilization. It is also recommended that borrowing be considered a last resort to fund government projects, and where it is unavoidable, such borrowing should be limited to domestic debt.

Increasing non-oil revenue potentiality through digital commerce: the case study in KSA

PurposeThis study mainly focuses on the potentiality of the e-commerce industry's opportunities and limitations in the Kingdom of Saudi Arabia (KSA) specifically toward non-oil revenue sectors.Design/methodology/approachE-commerce contribution to the retail market industry becomes more global and more flexible with the rapid growth of the Internet and information technology revolution. A new way of conducting business is rendered by e-commerce, which helps to make a profit electronically.FindingsThe main contributions of e-commerce are management of company operations, easy and cheaper ways of extending their markets and coordinating with the value chain across different borders. In addition, the Internet and e-commerce are responsible for removing language barriers, cultural diversification and extending the market to the national boundaries. The countries would have many innovative and dynamic aspects by the beginning of the global market that increases national revenue, market, employment opportunity, capital and access to technology and information.Originality/valueAt present, KSA's national revenue mostly depends on oil and its related commodities, while other trades compete with the global market and increase national income. So, it is essential to increase other Saudi products to reach a global business level through e-commerce. Moreover, the study suggests accessing new markets and participating in global production to improve e-commerce structure without affecting current employment patterns, industry structure, productivity and Saudi culture.

Non-Oil Revenue And Economic Growth of Nigeria (1981 To 2019).

The study investigated the impact of non-oil revenue on the economic growth of Nigeria for the period 1981 to 2019. The Autoregressive Distributed Lags (ARDL) technique was adopted alongside the unit root test, which showed that in all cases, the variables in level form were non-stationary but their first differences were found to be stationary. This shows that all the variables (including economic growth) are co-integrated at order 1. The short run diagnostic tests in the result are generally impressive since the adjusted R-squared value of 0.68 is relatively high and indicates that 68 percent of the short-term changes in economic growth is explained by the explanatory variables. The Durbin-Watson statistics is also impressive at 1.95, indicating the complete absence of autocorrelation in the model. However, in the long run the coefficient of tax revenue (TAXR) is significant among the non-oil revenue variables. This coefficient is positive and passes the significance test at the 5 percent level. This means that increased tax revenue leads to economic growth in the long run. A one percent rise in tax revenue in the current period will lead to a 0.656 percent growth in the economy over a long period. The coefficient of the other non-oil revenue variable (NTAXR) fails the test at the 5% level of significance. However, given that tax revenue is the main non-oil revenue, the result shows that non-oil revenue will most likely improve economic growth in Nigeria. For the other variables, only the coefficient of human capital (HUC) passes the significance test at the 5 percent level. The results of the study show that economic growth Granger causes nontax revenue inflow, rather than the other way around. This clarifies why NTAXR did not pass the significance test in the regression result. On the other hand, tax revenue Granger causes economic growth. These results indicate that a reverse relationship exists between economic growth and non-oil revenue, through the component of non-tax revenues. Finally, the study recommends that development of policies that will increase tax revenue is key to economic growth. Similarly, the researcher also recommends that investment in human capital development will boost economic growth of Nigeria both in the short and long run.