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Income inequality, unemployment, and poverty in Nigeria: a vector autoregressive approach

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Author Info

  • T. O. Akinbobola
  • M. O. O. Saibu

Abstract

The main features of poverty are low levels of consumption and income, a fact-of-life in most African countries. This paper analyzes the fundamental trends of per capita income, government capital expenditure, the human development index, and the rate of unemployment in the Nigeria. A vector autoregressive model finds that: A reduced unemployment rate improves human development and consequently reduces poverty. As growth in public capital expenditure rises, unemployment falls and the human development index improves. Therefore, infrastructure-based policies, which initially reduce unemployment, will also improve the living conditions of Nigerians in the end.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/1384128042000261800
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Economic Policy Reform.

Volume (Year): 7 (2004)
Issue (Month): 3 ()
Pages: 175-183

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Handle: RePEc:taf:jpolrf:v:7:y:2004:i:3:p:175-183

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Related research

Keywords: Poverty; Unemployment; Standard of living; Income inequality; JEL Code: O55;

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Cited by:
  1. Johannes Fedderke & Željko Bogetic, 2005. "Infrastructure and Growth in South Africa: Direct and Indirect Productivity Impacts of 19 Infrastructure Measures," Working Papers 39, Economic Research Southern Africa.

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