Empirical assessment of economic growth on poverty reduction in Nigeria

Type Journal Article - American Journal of Economics
Title Empirical assessment of economic growth on poverty reduction in Nigeria
Author(s)
Volume 5
Issue 6
Publication (Day/Month/Year) 2015
Page numbers 565-573
URL http://article.sapub.org/10.5923.j.economics.20150506.02.html
Abstract
Poverty situation in this country is a special scenario that is beyond human reasoning because the nation is endowed with numerous material resources, but more than two-third of its population is living in abject poverty. This study examines the impact of economic growth on poverty reduction in Nigeria using secondary data spanning from 1999 to 2014. Ordinary Least Squared (OLS) model was employed. Findings show that economic growth has impact in reducing poverty. Moreover, gross national income growth rate, agricultural vale added growth rate, export of goods and service growth rate, and real interest rate have impact in reducing poverty but their contributions here are statistically insignificant. The contributions of manufacturing valued added growth rate, industrial value added growth rate, service value added growth rate and gross capital formation growth rate failed apriori expectations and statistically insignificant. The work recommends among other; massive investment in both human and material capital, reforms in agricultural, industrial, manufacturing, and service sectors so as to create jobs for the teeming unemployed youths.

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