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Poverty and Income Inequality in Nigeria: Any Causality?

Author

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  • Evelyn Nwamaka Osaretin Ogbeide
  • David Onyinyechi Agu

Abstract

The issue of poverty has continued to pose serious threat to the continued cordial existence of an economy like Nigeria. Issues pertaining to poverty and inequality have also continued to receive wider attention among scholars in various economies of the globe. However, there seems to be a gap in literature as to the existence of a causal relationship between poverty and inequality. Should there be causality; the direction of causality is yet to be known, especially as it pertains to Nigerian economy. Therefore, this study seeks to establish whether or not there is a causal relationship between poverty and inequality in Nigeria. Adopting Granger causality techniques, this study finds out that there is a direct line of causality between poverty and inequality as well as indirect channels through unemployment and low life expectancy on inequality which exacerbate poverty in Nigeria.

Suggested Citation

  • Evelyn Nwamaka Osaretin Ogbeide & David Onyinyechi Agu, 2015. "Poverty and Income Inequality in Nigeria: Any Causality?," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 5(3), pages 439-452.
    • Handle: RePEc:asi:aeafrj:v:5:y:2015:i:3:p:439-452:id:1351
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    Citations

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    Cited by:

    1. Nwanakwere, Justine & Ogwumike, Fidelis, 2019. "Non-Food Poverty Differential Across Urban/Rural and Geo-political Zones in Nigeria," MPRA Paper 101457, University Library of Munich, Germany, revised 29 Jun 2020.
    2. Okorie, George Chisom & Anowor, Oluchukwu F., 2017. "Empirical Appraisal of Poverty-Unemployment Relationship in Nigeria," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 3(6), pages 91-97, 06-2017.
    3. Ademola Obafemi Young, 2019. "Growth Impacts of Income Inequality: Empirical Evidence From Nigeria," Research in World Economy, Research in World Economy, Sciedu Press, vol. 10(3), pages 226-262, December.
    4. Temilola Osinubi, Tolulope, 2020. "The Role Of Income Inequality In The Globalisation-Poverty Nexus: Empirical Evidence From Mint Countries," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 7(2), pages 67-89, June.
    5. Kohnert, Dirk, 2022. "Les Africains, sont-ils heureux ? « Retour au rire » en temps de guerre, de famine et de misère [Are Africans happy? 'Return to laughter' in times of war, famine and misery]," MPRA Paper 112941, University Library of Munich, Germany.
    6. Ekpeyong, Paul, 2023. "Econometric Analysis of the impact of inflation, unemployment, and economic growth on poverty reduction: A novel application of Asymmetric technique," MPRA Paper 117762, University Library of Munich, Germany.
    7. Mbazia, Nadia, 2017. "Inequality and Growth in Tunisia: Empirical evidence on the role of macroeconomic factors," MPRA Paper 81127, University Library of Munich, Germany.
    8. Kohnert, Dirk, 2022. "Are Africans happy? 'Return to laughter' in times of war, famine and misery," MPRA Paper 112940, University Library of Munich, Germany.
    9. FASHANU Felix Adeniyi & KASALI Taofeek Aremu & OLOWE Olukemi Olumuyiwa, 2023. "Reversing The Covid-19 Setback on Income Poverty Reduction: What Policy Options for Nigeria?," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(5), pages 1704-1719, May.
    10. Kashif Islam & Ahmad Raza Bilal & Syed Anees Haider Zaidi, 2022. "Symmetric and asymmetric nexus between economic freedom and stock market development in Pakistan," Economic Change and Restructuring, Springer, vol. 55(4), pages 2391-2421, November.
    11. Dian Wahyuningsih & Ani Yunaningsih & Muhammad Sidik Priadana & Dio Caisar Darma & Purwadi Purwadi, 2020. "Why are Unemployment and Poverty Still Happening in Borneo Island, Indonesia?," International Journal of Economics and Financial Issues, Econjournals, vol. 10(2), pages 235-241.
    12. Stephen Dauda, Rasaki & Joel Oyeleke, Olusola, 2021. "Poverty And Inequality: The Challenges To Sustainable Development In Nigeria," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 8(2), pages 1-16, June.
    13. Dr. FASHANU Felix Adeniyi & Dr. KASALI Taofeek Aremu & Dr. OLOWE Olukemi Olumuyiwa, 2022. "Relative Contributions of Disaggregated Government Social Expenditure to Income Poverty Reduction in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(3), pages 419-426, March.
    14. Abdul Rehman & Laura Mariana Cismas & Ioana Anda Milin, 2022. "“The Three Evils”: Inflation, Poverty and Unemployment’s Shadow on Economic Progress—A Novel Exploration from the Asymmetric Technique," Sustainability, MDPI, vol. 14(14), pages 1-16, July.
    15. Julian Augusto Casas Herrera, 2020. "Develando el vínculo entre la desigualdad y la pobreza," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 39(69), pages 39-68, February.

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