International Journal of Social Science & Economic Research
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Title:
AN EMPIRICAL ANALYSIS OF POVERTY-GROWTH-INEQUALITY LINKAGE IN NIGERIA

Authors:
Evelyn Nwamaka Ogbeide-Osaretin

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Evelyn Nwamaka Ogbeide-Osaretin
Department of Economics, Edo University, Iyamoh, Edo State

MLA 8
Ogbeide-Osaretin, Evelyn Nwamaka. "AN EMPIRICAL ANALYSIS OF POVERTY-GROWTH-INEQUALITY LINKAGE IN NIGERIA." Int. j. of Social Science and Economic Research, vol. 3, no. 5, May 2018, pp. 1983-2005, ijsser.org/more2018.php?id=137. Accessed 2018.
APA
Ogbeide-Osaretin, E. (2018, May). AN EMPIRICAL ANALYSIS OF POVERTY-GROWTH-INEQUALITY LINKAGE IN NIGERIA. Int. j. of Social Science and Economic Research, 3(5), 1983-2005. Retrieved from ijsser.org/more2018.php?id=137
Chicago
Ogbeide-Osaretin, Evelyn Nwamaka. "AN EMPIRICAL ANALYSIS OF POVERTY-GROWTH-INEQUALITY LINKAGE IN NIGERIA." Int. j. of Social Science and Economic Research 3, no. 5 (May 2018), 1983-2005. Accessed , 2018. ijsser.org/more2018.php?id=137.

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Abstract:
The issue of poverty is posing serious threat to the development of Nigeria economy. Poverty growth and income inequality have received much attention among scholars both on Nigeria and other economies of the world. Nevertheless, the existence of a causal relationship and the direction of causality among poverty growth and inequality have received little attention especially for Nigeria. Therefore, this study investigates the poverty-growth-inequality linkage to ascertain the existence and direction of causality in Nigeria and the possibility of a long-run relationship. Using data from a five-year round panel framework, inequality was found to be positively significantly related with poverty while growth had a negative insignificant relationship with poverty at 5 per cent level of significance. Also, there exist a long-run relationship between poverty growth and inequality. The causality triangle flows from growth causing income inequality, inequality causing poverty and growth increasing in Nigeria. The result show that there is a long-run bi-directional causality between growth and inequality, inequality causing poverty while there was no evidence of causality between growth and poverty. The study recommended among other the reduction of the inequality gap through channels such as improved taxation policies, employment and human capital development through education.