Munich Personal RePEc Archive

Good-Governance and Poverty Reduction Relationship a case study of Nigeria

Muhammad, Yusuf and C.A, Malarvizhi (2012): Good-Governance and Poverty Reduction Relationship a case study of Nigeria. Published in: Australian Journal of Basic & Applied Sciences , Vol. 7, No. 2 (February 2013): pp. 804-812.

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The aim of this paper is to examine whether governance causes poverty or alternatively poverty reduction causes governance in Nigeria. We applied ARDL approach to co integration in order to establish the direction of the relationship between governance and poverty reduction in Nigeria. The result suggests that three out of six indicators of governance integrate with poverty, but all of the indicators took a negative sign. Suggesting that the indicators of governance are too coarse to capture the nuances of interaction between governance and poverty in Nigeria, results from the Error correction representation suggest that there is reverse causality, Our study have some implication for economic research and for economic policy, research on governance must focus on real issues that involves actual rules, rather than on conceptually vague assessment of governance scores. On the policy, this paper suggests that Nigeria needs to focus on critical growth driven policies that sustained growth and poverty reduction in the short and medium term.

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