Manuscript Title:

POVERTY REDUCTION AND ITS DYNAMIC INTERACTION WITH ECONOMIC GROWTH AND INCOME INEQUALITY: EVIDENCE FROM NIGERIA (1986 – 2019)

Author:

GODWIN OLUWASEGUN AJIKE, ADELAKUN O. JOHNSON

DOI Number:

DOI:10.17605/OSF.IO/RNFQG

Published : 2021-10-10

About the author(s)

1. GODWIN OLUWASEGUN AJIKE - Department of Economics, Adeleke University, Ede, Osun State.
2. ADELAKUN O. JOHNSON - Economics Department , Federal University of Oye-Ekiti, Nigeria.

Full Text : PDF

Abstract

This study examines the dynamic interaction between economic growth and inequality in the analysis of the behavior of poverty in Nigeria. This is with the view to end poverty in all its form everywhere and reduce inequality in Nigeria, this study aligns with 2030 Sustainable Development Goals 1 and 10. Secondary data from 1986 – 2019 was used which were extracted from the World Development Indicator (WDI) published by the World Bank and Central Bank of Nigeria Statistical Bulletin. Vector autoregressive (VAR) model was used to obtain the dynamic effect that existed among poverty level, economic growth and inequality. The result showed that poverty level is affected contemporaneously by the shocks from it past value but diminishes over time. The impulse response of economic growth and inequality to a one standard deviation shock to poverty level has a noticeable increasing positive effect in the short run but showed an oscillatory movement around negative values in the long run.


Keywords

POVERTY REDUCTION AND ITS DYNAMIC INTERACTION WITH ECONOMIC GROWTH AND INCOME INEQUALITY: EVIDENCE FROM NIGERIA (1986 – 2019)