Poverty and Income Inequality in Nigeria: An Empirical Assessment

Abstract

This paper attempts to empirically assess the relationship between poverty, income distribution and the growth of the Nigerian economy. To do this, a co-integration technique was employed to test for the unit root and the error correction mechanism (ECM). The Real Gross Domestic product was regressed on Private Consumption Expenditure, Per Capita Income, Registered Unemployment, and Government Expenditure on Health and Education. Arising from the findings, the paper recommends that, for there to be sustainable improvements in the economy, the government at all levels should, amongst others, focus more on the development of essential social services for easier access to education, health, transportation and financial services. This should be complemented by executing relevant development programmes that will boost the income level of the poor, which is desirable for both income redistribution and poverty alleviation purposes.

Keywords:Poverty, IncomeDistribution, Growth, Cointegration