Poverty and non-inclusive growth in Nigeria

Adegboyega, Raymond. R.

Abstract

The paper examines the impact of poverty on non-inclusive growth using the Autoregressive Distributed Lag regression analysis on data collected from the Central Bank of Nigeria and the World Bank database from 1981 to 2020. The obtained result indicates that the initial economic growth level does not result in poverty reduction, while a positive change in economic growth results in poverty reduction. The paper concluded that inclusive economic growth is significant for poverty reduction when it increases employment and improves opportunities for productive activities among the poor. The article recommended measures, such as stable macroeconomic policies, huge investment in agriculture, infrastructural development, and good governance to sustain the inclusive economic growth rate and reduce poverty in Nigeria. Keywords: Non-inclusive growth; Poverty; Trickle-down effect; ARDL

References

Ali, I., & Son, H.H. (2007). Measuring inclusive growth. Asian Development Review, 24(1), 11-31.

Bakare, A.S. (2014). Does economic growth reduce poverty? Developing Countries Studies, 4, 54–59.

Barro, A., & Sala I. M., (1995). Economic Growth, London: McGraw-Hill Inc.

Dollar, D., & Kraay, A. (2002). Growth is good for the poor. Journal of Economic Growth, 7(3), 195-225.

Fields, G.S. (2000). The dynamics of poverty, inequality, and economic well-being: African economic growth in comparative perspective. Journal of African Economics, 9(1), 45-78.

Grootaert, C., Kanbur, R., & Oh, G. (1995). Dynamic of poverty why some people escape and others don’t: An African case study. World Bank Policy Research Working Paper No.1499.

Herrick, B., & Kindleberger, C. P. (1983). Economics Development Singapore. Mc Graw-Hill.

Ijaiya, G.T., Ijaiya, M.A.A., Bello, R.A., & Ajayi, M.A. (2011). Economic growth and poverty reduction in Nigeria. International Journal of Business and Social Science, 2(15), 147-154.

Kakwani, N., & Pernia, E.M. (2000). What is pro-poor growth? Asian Development Review, 18(1), 1–16.

OECD (2008). Growing unequal? Income distribution and poverty in OECD countries

OECD (2018). SME policy Index: ASEAN 2018: Boosting competitiveness and inclusive growth, SME policy index, OECD Publishing, Paris/ERIA, Jakarta, https://doi.org/10.1787/9789264305328-en. Chapter 13. Cambodia.

Ogwumike, F.O. (2002). ‘Concept, measurement and nature of poverty in Nigeria’, Paper presented at National PRSP Empowerment Workshop, Kaduna (July).

Ostry, J.D., Berg, A., & Tsangarides, C.G. (2014). Redistribution, inequality, and growth. IMF Staff Discussion Notes 14/02.

Pesaran, M.H., Shin, Y., & Smith, R.J. (2001). Bound testing approaches to the analysis of level relationships, Journal of Applied Econometrics, 16(5), 289-326.

Solow, R.M. (1956). A contribution to the theory of economic growth. Quarterly Journal of Economics, 70(5), 65-94.

Thornton, J.R., Agnello, R., & Link, C. (1978). Poverty and economic growth: Trickle down Peters Out. Economic Inquiry, 16(3), 385–394

World Bank (1996). Nigeria, poverty in the midst of plenty: The challenge of growth with inclusion. Washington, D.C.: World Bank.

World Bank (1997). Selected world development indicators, World Development Report 1997, New York: Oxford University Press.