Socioeconomic development and sustainable development in Nigeria: the roles of poverty reduction and social inclusion

Purpose - This study examines the roles of poverty reduction and social inclusion as socioeconomic factors in achieving sustainable development (SD) in Nigeria from 1970 to 2019. Design/methodology/approach - Vector error correction model (VECM) is adopted as the analytical technique. Three groups of factors are employed when determining SD: economic (per capital gross domestic product [GDP] and the inflow of foreign direct investment [FDI]), social (life expectancy, school enrollment, poverty and the proportion of women in parliament) and environmental (CO2emission and natural resource endowment). Findings - The findings reveal that the economic factors (GDP per capita and the inflow of FDI to the GDP ratio) and two of the social determinants (life expectancy and school enrollment) have a positive effect on SD while the remaining two social determinants (poverty gap and the proportion of women in parliament) and the environmental determinants (CO2emission and natural resource endowment) have a negative influence on SD in Nigeria during the period under study. Originality/value - First, this study integrates social inclusion into the poverty–SD nexus in the same study framework for a thorough analysis given that social inclusion has been identified as one of the leading variables affecting sustainability. Second, this study fills a gap in the literature by accounting for economic, social and environmental factors that influence SD, as opposed to the majority of existing studies that only employed environmental variables when examining the relationship between poverty and sustainability.