Acta Universitatis Danubius. Œconomica, Vol. 15, No. 1 - 3
Abstract
This study examined the relationship between income inequality and economic growth in
Nigeria and its implication for economic development. The study covered the period 1981 to 2017
and employed the autoregressive distributed lag estimation technique. The results of the study showed
that economic growth had positive but insignificant impact on income inequality in Nigeria. Thus, the
study recommends the need for the government to ensure equitable distribution of economic gains
among the poor citizens. The budgetary preparation and allocation should also be pro-poor based and
tailored towards improving the welfare of the larger population and not at further enriching the few
rich ones. The implementation of the above and other welfare enhancing policies would contribute to
increasing the level of economic development in Nigeria.
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