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Foreign aid, food supply and poverty reduction in Nigeria - Examination of possible nexus

Abiola, A.G and Olofin, O.P (2008): Foreign aid, food supply and poverty reduction in Nigeria - Examination of possible nexus.

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Abstract

This study examines the relationship among foreign aid, food supply and poverty reduction in Nigeria. It uses secondary data for the period 1975-2005. With the use of econometric analysis we specify a structural model that examines the determinants of poverty-reduction. We test our model specification, using Statistical Analysis of Time Series (STATA 10) software. We find that multilateral aid, food supply, public sector spending on health care and education are the major determinants of poverty reduction in Nigeria. We conclude that given the ongoing food supply crises, the gradual withdrawal of government from provision of health care and education as well as the unreliability of aid, there is the need for some policy re-think if poverty is to be reduced in the country.

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