Inequality, Poverty and Economic Growth in Nigeria
Keywords:
Income Inequality; Poverty; Economic Growth; ARDL; NigeriaAbstract
This study examined the relationship among income inequality, poverty and economic growth in Nigeria over the period 1981 to 2018. Specifically, the study examined: (i) the impact of income inequality and poverty on economic growth, (ii) the role of poverty in the link between inequality and economic growth, and (iii) the interactive effect of income inequality and poverty on economic growth. Using the autoregressive distributed lag technique, the study observed that inequality had positive and significant impact on economic growth while poverty had an insignificant impact on economic growth. More so, it was observed that poverty is insignificant in the relationship between income inequality and economic growth while income inequality played a significant role in the relationship between poverty and economic growth. Finally, the study found that the interactive impact of inequality and poverty on economic growth is significant. Drawing from the above, the study concluded that: (i) in the absence of poverty, income inequality had a positive and significant impact on economic growth, (ii) in the absence of income inequality, poverty had an insignificant impact on economic growth, (iii) poverty does not influence the relationship between income inequality and economic growth, and (iii) income inequality influence the relationship between poverty and economic growth.
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