Oil Revenue, Government Expenditure and Poverty Rate in Nigeria

Adelowokan Oluwaseyi A

Authors

Adelowokan Oluwaseyi A

Keywords:

oil revenue, government expenditure, poverty rate, economic growth, nigeria

Abstract

This study examines the impact of revenue from oil proceeds and disaggregated government spending on poverty rate in Nigeria. Different econometrics tests i.e. pre-estimation test, estimation techniques and diagnostic tests such as Augmented Dickey Fuller, Engel-Granger co-integration, Ordinary Least squares and Granger causality were analysed using the data sets within the period of 1970 and 2013. Empirical result disclosed that gross domestic product and revenue from oil proceeds exert negative effect on poverty rate in Nigeria during the reviewed period. This revealed that oil proceeds being the main revenue source in Nigeria have greater impact in ensuring equal distribution of income as a means of reducing poverty level among her citizens. Painstakingly, these proceeds are not channelled into right directions with regards to government spending on capital projects and recurrent expenditure. This further exacerbates the poverty level in Nigeria.

Downloads

How to Cite

Oil Revenue, Government Expenditure and Poverty Rate in Nigeria. (2015). Global Journal of Management and Business Research, 15(B10), 11-20. https://journalofbusiness.org/index.php/GJMBR/article/view/1861

Download Citation

References

O Akanbi, C Toit (2011) Macro-econometric modelling for the Nigerian economy: A growthpoverty gap analysis. 28, 335-350.

A Ali, E Thorbecke (2000) The State and Path of Poverty in Sub-Saharan Africa: some Preliminary Results. 9(Supplement 1), 9-40.

Costas Azariadis, John Stachurski (2005) Chapter 5 Poverty Traps. 1, 295-384.

C Barrett, M Carter (2013) The economics of poverty traps and persistent poverty: empirical and policy implications. 49(7), 976-990.

Robert Barro (1990) Government Spending in a Simple Model of Endogeneous Growth. 98(5, Part 2), S103-S125.

(2006) Poverty traps.

David Cass (1965) Optimum Growth in an Aggregative Model of Capital Accumulation. 32(3), 233.

E Chirwa (2005) Macroeconomic Policies and Poverty Reduction in Malawi: What can we Infer from Panel Data? University of Malawi.

C Datt, M And, Ravallion (1992) Is poverty increasing in the developing world?. 40, 359-376.

J Emejo (2014) World Bank Cuts Nigeria's Poverty Rate to 33.1%, Says North is Poorer.

A Fosu (2010) Does inequality constrain poverty reduction programs? Evidence from Africa. 32, 818-827.

R Harrod (1953) Full Capacity vs. Full Employment Growth: Comment. 67(4), 553.

Robert King, Sergio Rebelo (1990) Public Policy and Economic Growth: Developing Neoclassical Implications. 98(5, Part 2), S126-S150.

T Koopmans (1965) On the concept of optimal economic growth, in study week on the econometric approach to development planning. 15.

Robert Lucas (1988) On the mechanics of economic development. 22(1), 3-42.

J Mitchel (2005) The Impact of Government Spending on Economic Growth.

Richard Nelson (1956) Growth Models and the Escape from the Low-Level Equilibrium Trap: The Case of Japan. 8(4, Part 1), 378-388.

C Ngonghala, M Pluciński, M Murray, P Farmer, C Barrett, D Keenan, M Bonds (2014) Poverty, Disease, and the Ecology of Complex Systems. 12(4), 1001827.

F Ogunmike (2010) Poverty, Income Inequality and Economic Growth in Nigeria (1981-2019). 2(2), 80-105.

Taiwo Owoeye, Dare Adenuga (1970) Human Capital and Economic Development - An Empirical Analysis of a Developing Economy (1970-2000).

H Pilvin (1953) Full capacity vs. Full employment growth. 67(4), 545-552.

F Ramsey (1928) A mathematical theory of saving. 38, 543-549.

Paul Romer (1986) Increasing Returns and Long-Run Growth. 94(5), 1002-1037.

Anil Rupasingha, Stephan Goetz (2007) Social and political forces as determinants of poverty: A spatial analysis. 36(4), 650-671.

R Solow (1956) A Contribution to the Theory of Economic Growth. 70, 65-94.

Randall Stone (2011) Controlling Institutions.

James Tobin (1955) A Dynamic Aggregative Model. 63(2), 103-115.

(2010) World development report.

Hartmut Sangmeister (2014) International Bank for Reconstruction and Development/The World Bank: World development report 1982. 24(1), 161-166.