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Economic Growth, Income Redistribution and Poverty Reduction: Experiences from Rural Nigeria

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  • Toyin, Adigun Grace
  • Timothy, Awoyemi Taiwo

Abstract

The paper examines changes and the extent of poverty in rural Nigeria from 1996 to 2004. It investigates the contributions of growth and redistribution factors to changes in poverty within these eight years. The analysis is based on household National Consumer Survey (NCS) of 1996 and the National Living Standard Survey (NLSS) data of 2004 all collected by the National Bureau of Statistics (NBS). Using Shapley Decomposition Approach, the study reveals that the extent of poverty in the rural sector declined slightly during the second period of study (2004). Decomposition of changes in poverty into growth and redistribution components indicate that both the growth and the redistribution component were poverty reducing but at different magnitudes indicating that the deterioration of income inequality contributes to the worsening of poverty in Nigeria.

Suggested Citation

  • Toyin, Adigun Grace & Timothy, Awoyemi Taiwo, 2014. "Economic Growth, Income Redistribution and Poverty Reduction: Experiences from Rural Nigeria," Asian Journal of Agricultural Extension, Economics & Sociology, Asian Journal of Agricultural Extension, Economics & Sociology, vol. 3(6).
    • Handle: RePEc:ags:ajaees:357453
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    References listed on IDEAS

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    3. Siddiqur Rahman Osmani, 2000. "Growth Strategies and Poverty Reduction," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 18(02), pages 85-130.
    4. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," The World Bank Economic Review, World Bank, vol. 10(1), pages 1-25, January.
    5. Adams, Richard Jr., 2004. "Economic Growth, Inequality and Poverty: Estimating the Growth Elasticity of Poverty," World Development, Elsevier, vol. 32(12), pages 1989-2014, December.
    6. Datt, Gaurav & Ravallion, Martin, 1992. "Growth and redistribution components of changes in poverty measures : A decomposition with applications to Brazil and India in the 1980s," Journal of Development Economics, Elsevier, vol. 38(2), pages 275-295, April.
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