Odozi, John C. and Awoyemi, Timothy T. (2010): Poverty reduction efforts in Nigeria 1996 – 2004: a micro level analysis of the relative importance of income growth and redistribution.
Download (400kB) | Preview
A common narrative on Africa’s development process is that specific country policies of income growth and redistribution are necessary for poverty reduction. For growth theoreticians, economic growth must be pursued while for political economists, redistribution is necessary to cushion the detrimental effect of reform policies. These views appear to converge in the many policies and programmes implemented over the years by the Nigerian government. In light of this, we accounted for the effect of these variables using two recent national household survey data sets collected by the National Bureau of statistics in 1996 and 2004 upon which we applied three commonly used poverty indices(FGT) and the Shapely decomposition analytical framework. For robustness, we carried out complementary analysis using the stochastic dominance test and growth incidence curve. Results showed that for the whole country, rural and urban areas respectively, income growth component accounted for -16%, -10% and -10%, while the redistribution component represented -5%, -7% and -4%, suggesting on the average a poverty reducing role. However, a more disaggregated pattern of changes in per capita income reveal that the poor did not benefit much.
|Item Type:||MPRA Paper|
|Original Title:||Poverty reduction efforts in Nigeria 1996 – 2004: a micro level analysis of the relative importance of income growth and redistribution.|
|Keywords:||Income growth, distributional shift, poverty, household, pro-poor growth|
|Subjects:||I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I30 - General
I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty
|Depositing User:||JOHN C. ODOZI|
|Date Deposited:||28 Jan 2012 14:29|
|Last Modified:||30 Jul 2016 23:24|
Aigbokhan (2008). Growth, Inequality and Poverty in Nigeria. A paper prepared for United Nations Economic Commission for Africa (UNECA), Addis Ababa Ethiopia.www.uneca.org/
Bourguignon, F. (2004). The Poverty – Growth – Inequality Triangle Indian Council for Research on International Economic Relations, New Delhi, Working Paper No. 125 (March). www.worldbank.org.
Canagarajah, S. and Thomas, S. (2001). Poverty in a Wealthy Economy: the case of Nigeria. Journal of African Economies, 10.2: 143-173.
Datt, G. and Ravallion, M. (1992). Growth and Redistribution Components of changes in poverty measures: a decomposition with applications to Brazil and India in the 1980s. Journal of Development Economics, 38:2, 275-295.
Deaton, A. (1985) The measurement of welfare: Theory and practical guidelines. Living standards measurement study working paper No. 7. the world bank, Washington
Deininger,K. and Squire, L. (1996) A new data set measuring income inequality. The World Bank Economic Review 10.3: 565-591.
Demombynes and Hoogeveen (2007). Growth, inequality and simulated poverty paths for Tanzania, 1992- 2002. Journal of African Economies. 16.4:596-628
Dercon, S. (2009). Agriculture, Growth and Rural Poverty Reduction in Africa: Fallacies, Contexts and Priorities for Research. A framework Paper for the AERC work in Understanding the links between Growth and Poverty Reduction in Africa
Fields, G.S. (1997) Poverty, Inequality and Economic Welbeing: African Economic Growth In Comparative Perspective. AERC Collaborative Research Project. www.aercafrica.org.
Foster, J., Greer, J. and Thorbecke, E. (1984). A class of decomposable poverty indices, Econometrica, 52:761-765
Fosu, A.K. (2008) Inequality and the Impact of Growth on Poverty: Comparative Evidence for Sub-Saharan Africa Research Paper No. 2008/107http://www.wider.unu.edu/
Ikpi, (1995), Ikpi, A. 1996. Democratic Governance and Development in 21st century West Africa. Governance and development in West Africa: perspectives for the 21st century. Eds. A. E. Ikpi and J.k. Olayemi. Nigeria: Winrock International. 17- 39.
Kuznets, S. (1955). Economic growth and Income Inequality. The American Economic Review XLV.1: 1-28.
Clancy, C. and Madden, D. (1999). Growth and inequality in Ireland: 1987-1999(2005) working paper series 2005 centre for economic research, department of economics, university college Dublin. www.ucd.ie/
McKay and Perge (2009) Spatial Inequality and its Implications for Growth Poverty Reduction Relations Paper prepared as framework paper for AERC Collaborative Research Project on the Growth- Poverty Nexus. Retrieved 12 June, 2008, from www.aercafrica.org.
NISER, 2000) Nigerian Institute of Social and Economic Research (NISER) Review of Nigerian Development, 2000. The State in Nigerian Development. Ibadan:New World Press.
Obadan, M.1. (2002). Poverty reduction in Nigeria: the way forward. Central Bank of Nigeria Publication, volume 39-43. http://www.cenbank.org/
Olayemi (1995) Olayemi, J. K. 1995. Agricultural Policies for Sustainable Development: Nigeria’s Experience. Sustainable Agriculture and Economic Development in Nigeria. Eds. A.E. Ikpi and J. K. Olayemi. Nigeria: Winrock International. 41-60.
Oyekale, A.S., Adeoti, A.I. and Oyekale, T.O. (2006). Measurement and Sources of PEP Research Network general meeting. Addis ababa, Ethopia.Poverty and Human Well being. Helsinki, Finland.
Ozler (2007),Not separete, not equal: Poverty and inequality in post-apartheid South Africa. Economic development and cultural change. 35.3:487 - 529
Perotti, R. 1992. Income distribution, Politics and Growth. America Economic Review. Papers and proceedings 82.2:311-316
Persson T. and G. Tabellini (1995) "Is inequalty Harmful for Growth?
Ravallion, M. and Chen, S. (2001) Measuring pro-poor growth. Development research group. World Bank
Zhang and Wan (2006) the impacts of growth and inequality on rural poverty in China UNU-WIDER research paper No. 2006/94.