Central Bank of Nigeria
Variance Decomposition, Impulse Response Function, Equity, Macroeconomic Stability
This paper examined the existing relationship among economic growth, poverty and income inequality in Nigeria. Using the Vector Auto-regressive (VAR) model and the Engle-Granger technique to test for the causality existing among the variables, the results revealed that economic growth had no impact on poverty reduction and income distribution in Nigeria due its non-inclusive nature. There was, however, evidence of a unidirectional causality, running from income inequality to increased poverty. This implied that inequality would lead to increase in poverty in Nigeria. Therefore, the paper recommended that government should develop stronger economic institutions that are capable of reorganising the productive base and reward system in the economy so as to promote and guarantee economic efficiency, equity and macroeconomic stability and inclusive growth.
CBN Economic and Financial Review
Okafor, H. O. (2016). Economic Growth, Poverty and Income Inequality Matrix in Nigeria: A Further Investigation. CBN Economic and Financial Review. 54(1), 25-44