New Evidence on the Role of Growth and Redistribution in Explaining Poverty Changes in Nigeria

Authors

  • Jude Okechukwu Chukwu

Keywords:

growth, redistribution, poverty

Abstract

The growth episode between 2004 and 2010 contradicted trickle-down hypothesis because per capita GDP growth rate increased from 3.3% in 2004 to 4.9% in 2010, yet poverty deteriorated from 54.4% in 2004 to 69% in 2010. The study investigates the distributive effects of growth and redistribution on poverty changes in Nigeria using HNLSS 2010 and NLSS 2004. The Datt & Ravallion (1992) approach and the Shapley value decomposition rule by Shorrocks (1999) were employed for the analyses using Foster-Greer-Thorbecke (1984) poverty measures. The main findings are that: (i) changes in growth were larger than changes in redistribution; (ii) southern zones lagged behind their northern counterparts in both poverty reduction and inequality improvement; (iii) the north east zone experienced negative distribution effect. The policy implications of the findings imply that; first, robust inequality reducing policies to complement growth promoting policies might not have existed or might have existed but were not properly mainstreamed; second, public intervention funds to reduce poverty might not have been sufficiently channelled towards the extreme poor.

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Published

2019-10-11

How to Cite

Chukwu, J. O. (2019). New Evidence on the Role of Growth and Redistribution in Explaining Poverty Changes in Nigeria. NIGERIAN JOURNAL OF SOCIAL SCIENCES, 13(2). Retrieved from https://journals.aphriapub.com/index.php/NJSSUNN/article/view/986

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Articles