Poverty, Inequality and Rising Growth in Nigeria: Further Empirical Evidence

Kolawole, Bashir Olayinka; Omobitan, Olufunsho Abayomi; Yaqub, Jameelah Omolara

doi:10.5539/ijef.v7n2p51

Cited by 15 publications

(16 citation statements)

References 49 publications

(34 reference statements)

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“…The study found that expenditure on education failed to enhance economic growth while expenditure on health and agriculture contributed positively to growth. Also, in a related study, Kolawole, Omobitan and Yaqub (2015) found a significant positive association between government expenditure on health and per capita growth in Nigeria, as against significant negative impact of government expenditure on education on per capita GDP over the period between 1980 and 2012 in the country.…”

Section: Review Of Government Spending and Growth Nexusmentioning

confidence: 87%

Oil Revenue, Public Spending and Economic Growth Relationships in Nigeria

Aregbeyen¹,

Kolawole²

2015

JSD

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This study examined the relationships among oil revenue, government spending, and economic growth in Nigeria. By implication, it investigated whether oil revenue impacted on government spending, as well as on economic growth in the country over the period from 1980 to 2012. Time series data were analyzed using econometric techniques which included Ordinary Least Square (OLS), cointegration, Vector Error Correction Model (VECM), and Granger causality to determine the direction of causality and the magnitude of impacts of the variables. Findings from the analysis revealed that oil revenue Granger caused both of total government spending and growth, while there was no-causality between government spending and growth in the country. The study therefore suggested that government should increase spending on capital projects as well as intensify efforts at increasing output in the oil sub-sector in order to boost economic growth in Nigeria.

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Section: Review Of Government Spending and Growth Nexusmentioning

confidence: 87%

Oil Revenue, Public Spending and Economic Growth Relationships in Nigeria

Aregbeyen¹,

Kolawole²

2015

JSD

Self Cite

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“…This is corroborated by the classification of Nigeria amongst the lowest-income nations with GDP per capita of $2,175.67 in 2016, which is low when compared with other developing countries in the world. In 2017, the poverty survey by the National Bureau of Statistics subsequently NBS show that over 70 percent of Nigerians are living on less than a dollar a day, compared with 52 percent in 2004 [3]. This is corroborated by the [2] ranking of Nigeria as the poorest country in the world as compared with 2001 ranking from 28 th position.…”

Section: Introductionmentioning

confidence: 99%

“…To close this gap in literature, this study adopts labour productivity i.e GDP/employee as indicator of productive and healthy living. Other studies on poverty in recent era have focused more on inequality and economic growth [8], [7] and [3] with mixed submissions. Thus, while [7] documents the absence of a direct causal relationship between poverty and health indicators, within the same discussion, [3] reports a significant relationship between health indicators and poverty incidence in Nigeria, thus corroborating previous evidence from [8] with the submission that social resources have direct significant effects on poverty reduction in the country, thus a sharp departure from [7].…”

Section: Introductionmentioning

confidence: 99%

“…Other studies on poverty in recent era have focused more on inequality and economic growth [8], [7] and [3] with mixed submissions. Thus, while [7] documents the absence of a direct causal relationship between poverty and health indicators, within the same discussion, [3] reports a significant relationship between health indicators and poverty incidence in Nigeria, thus corroborating previous evidence from [8] with the submission that social resources have direct significant effects on poverty reduction in the country, thus a sharp departure from [7]. Again, popular among previous studies is the OLS estimation technique which is bedeviled by several realities, to improve on previous studies in terms of methods of analyses, we adopt modern econometric technique like the Bound co-integration test, and ARDL estimation technique.…”

Section: Introductionmentioning

confidence: 99%

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Poverty Menace and Social Economic Nexus in Nigeria: A Bound Test Approach

Nwani

Ozegbe

Onochie

2019

SAJSSE

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Nigeria has recorded variations in major macroeconomic variables since independence. Growth episodes over the years though encouraging put has not translated to improvement in poverty incidence. The rate of poverty in the nation has out-grown population growth, hence, this study seeks to relate various sectors of the economy to the perturbing poverty level in the nation with emphasis on the social sectors in which health and education play integral roles. This study examines poverty and social economic mix in Nigeria with the objectives of ascertaining the partial impacts of productivity (as a measure of health outcome), public social expenditures, agricultural output, manufacturing output and infrastructural development on poverty incidence, the study collected secondary annual time series data spanning 37 years from 1981 to 2017 on poverty index (PVTI), productivity due to good health (HP) and other explanatory variables as earlier identified. The pre-estimation techniques adopted include descriptive statistics, Phillips-Perron stationarity test and bounds test to co-integration. The preliminary result reveals that the variables in the model have long run relationship. The parameters of the model were estimated using the ARDL technique and the study found that productivity due to good health (HP) has significant effect on poverty reduction, as public social expenditures, current period’s agricultural output and previous period manufacturing output have similar effects but not statistically significant, however, infrastructural development and current manufacturing output have significant positive impact on poverty incidence in the country. On the basis of our empirical revelation, the study recommends that government should adopt multi-sectoral and big push development approaches with priority on employees’ productivity through free health care programmes for the unemployed, quality health insurance scheme for the employed, free education for children of the poor and unemployed, and that investment in critical infrastructures such as roads, rail, energy and storage facilities that promote agriculture and manufacturing outputs be improved upon if poverty is to be decisively tackled in Nigeria.

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“…Kolawole, Omobitan, and Yaqub (Kolawole et al 2015) used error correction technique to fit time series data from 1980 to 2012. Their results revealed that GDP growth rate increases inequality, but reduces poverty in the country.…”

Section: Empirical Literaturementioning

confidence: 99%

An Investigation of (Non-) Inclusive Growth in Nigeria’s Sub-Nationals: Evidence from Elasticity Approach

Udoh

Ayara

2017

Economies

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This paper aims to estimate and rank the performance of sub-nationals in terms of their quality of growth using an index of inequality elasticity of poverty. The study puts forward a scenario matrix to hypothesize the four qualities of growth according to its interactions with inequality and poverty. This model is useful for developing countries that lack GDP data at the sub-national level, provided growth (at the national level) has been positive for the period under review. The study found that for Nigeria's sub-nationals, the null hypothesis of non-inclusive growth was rejected for the different poverty measures.

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Poverty, Inequality and Rising Growth in Nigeria: Further Empirical Evidence

Cited by 15 publications

References 49 publications

Oil Revenue, Public Spending and Economic Growth Relationships in Nigeria

Oil Revenue, Public Spending and Economic Growth Relationships in Nigeria

Poverty Menace and Social Economic Nexus in Nigeria: A Bound Test Approach

An Investigation of (Non-) Inclusive Growth in Nigeria’s Sub-Nationals: Evidence from Elasticity Approach

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