Cointegration and Econometric Analysis of Non-Stationary Data in Nigeria: An Empirical Evidence

  • Iyeli I Iyeli
  • Anthony Imoisi
  • Aham Kelvin Uko

Abstract

This study discussed the concept of cointegration and the econometric analysis of non-stationary time- series in the context of Nigeria data. The outcome reveals a high degree of non-stationarity of Nigeria data and also show along –run relationship between corporation income tax and the variables identified as its determinants, namely, market capitalization and value of stock market transactions. This is in conformity with the philosophy underlying the cointegration theory. Therefore, ignoring cointegration in non-stationary time series variables could lead to misspecification of the underlying process in the determination of corporate income tax in Nigeria. Thus, the study conclude that cointegration is greatly enhanced the existing dynamic econometric modeling of economic time series and should be considers nowadays as a very valuable part of the applied econometrician tool kit in analyzing economic problems for effective decision making.

LWATI: A Journal of Contemporary Research, 8(1), 194-213, 2011

Author Biographies

Iyeli I Iyeli
Department of Economics, University of Port Harcourt , Nigeria
Anthony Imoisi
Department of Economics, University of Port Harcourt , Nigeria
Aham Kelvin Uko
Department of Economics, University of Port Harcourt , Nigeria
Section
Articles

Journal Identifiers


eISSN: 1813-2227