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 1.1 Background of Study

 The effect of fiscal policy instruments on growth and development with taxation playing a central role is perhaps the oldest, most studied, and most controversial topic in economics. The effect of corporate taxes on private sector investment is one of the central questions in both public finance and development. This is premised on economists concern as regards how changes in tax policy and feedback behavior affect economic activity. As a result, a pool of divergent theories, opinions and empirical studies on taxation, constitute a significant portion of economic literature. The need for government in the affairs of man is the basis for taxation. Tax simply is a demand made by the government of a country for a compulsory payment of money by the citizens of the country. It is an instrument used to withdraw resources from the populace. Taxes are known to play various roles ranging from revenue generation which finances public expenditures to trade/individual protection, consumption management, behavior modification and income redistribution. Private sector investment on the other hand has to do with spending on goods that is undertaken by companies and organizations that are not owned or controlled by the government (Encarta World English Dictionary). It is the process of investing in a product that is not traded publicly. It includes all profit and non-profit enterprises/activities not initiated by the government. Private sector investment also includes buying goods directly from the source and keeping them until they are sold for profit. Investments in healthcare, schools, research organizations, medical care units and other community projects which do not involve profit but for improving the standard of living of a certain region, qualifies for private investment. It is one of the major components of Gross Domestic Product.

Review project detailsComments
Number of Pages67 pages
Chapter one (1)Yes  Introduction
Chapter two (2)Yes  Literature review
Chapter three (3) Yes methodology
Chapter  four (4) Yes  Data analysis
Chapter  five (5) Yes Summary,discussion & recommendations
ReferenceYes Reference
QuestionnaireYes Questionnaire
Appendixyes Appendix
Chapter summaryyes 1 to 5 chapters
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