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Linkage between Fiscal Policy and Poverty Reduction in Nigeria

Author

Listed:
  • FARAYIBI, Adesoji
  • OWURU, Joel

Abstract

This study investigates the linkage between fiscal policy and poverty reduction in Nigeria using a descriptive analysis. It explores the effectiveness of fiscal policy tool, especially government expenditure, in addressing the level of poverty and economic growth in the country. The study found that government capital and recurrent expenditures have not significantly reduced the levels of poverty in Nigeria because of a weak linkage, which has not allowed fiscal policy to reflect its true opportunity cost. This gap created loopholes in the implementation of the various measures of fiscal policy in the country. The study therefore concludes that the level of government capital expenditures in Nigeria have weak impact on the level of poverty in the country over the period of time covered. The study therefore recommends the formulation of stable macroeconomic policies that are consistent with the peculiarity of poverty situation in the country. This would promote productivity from which both the poor and non-poor would benefit.

Suggested Citation

  • FARAYIBI, Adesoji & OWURU, Joel, 2016. "Linkage between Fiscal Policy and Poverty Reduction in Nigeria," MPRA Paper 74678, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:74678
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    File URL: https://mpra.ub.uni-muenchen.de/74678/1/MPRA_paper_74678.pdf
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    References listed on IDEAS

    as
    1. Martijn R.E. Brons & Henri L.F. De Groot & Peter Nijkamp, 2000. "Growth Effects of Governmental Policies: A Comparative Analysis in a Multi‐Country Context," Growth and Change, Wiley Blackwell, vol. 31(4), pages 547-572.
    2. Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," The World Bank Research Observer, World Bank, vol. 15(2), pages 225-249, August.
    3. David Dollar & Aart Kraay, 2004. "Trade, Growth, and Poverty," Economic Journal, Royal Economic Society, vol. 114(493), pages 22-49, February.
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    Cited by:

    1. Maku Olukayode Emmanuel & Tella Afeez Taiwo & Fagbohun Akinola Christopher, 2020. "Alleviating Poverty in Nigeria: Keynesian Vs Monetary Theory of Poverty," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(1), pages 103-120, March.
    2. Gbatsoron Anjande & Simeon T Asom & Ngutsav Ayila & Bridget Ngodoo Mile & Victor Ushahemba Ijirshar, 2022. "Government Spending and Money Supply Roles in Alleviating Poverty in Africa," Papers 2209.14443, arXiv.org.
    3. Fatoba, Iyanuoluwa & Otonne, Adewumi, 2024. "The Effect of Fiscal Policy Shocks on Income Inequality and Household Poverty Reduction: Evidence from Nigeria," African Journal of Economic Review, African Journal of Economic Review, vol. 12(4).

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    More about this item

    Keywords

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    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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