Does corruption cause income inequality and long-run poverty?(Evidence from Nigeria)

Usenata, Nnyeneime (2022): Does corruption cause income inequality and long-run poverty?(Evidence from Nigeria).

Abstract

There is a significant relationship between corruption and economic stagnation in Nigeria. Corruption is one of the fastest ways to poverty because higher growth rate is associated with lower poverty levels. Corruption slows down the rate of poverty reduction by reducing growth. Income inequality has been shown to be harmful to growth and if corruption increases income inequality, it will also reduce growth in the process thus becoming an impediment to poverty reduction. Corruption makes poverty self-reinforcing especially in low-income countries. Corruption reduces the poor’s access to public goods. When it goes unchecked, corruption is often accompanied by economic stagnation, misallocation of resources, social and economic disparities, and political violence. Corruption grows into tax evasion, poor tax administration and exemptions which disproportionately favors the rich, privileged, and wealthy population groups.

• Item Type: MPRA Paper
• Language: English
• Keywords: Corruption, governance, politics, bribe, income, poverty, stagnation, growth
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence

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