policy measures to government, policy makers and, income is distributed unevenly among a population. Available at: http://siteresources.worldbank.org/INTPGI/Resources/342674-. The findings from the research indicates that as economic growth increases, the level of income inequality actually worsens in Nigeria. Available at: http://planningcommission.nic.in/aboutus/speech/spemsa/msa010.pdf, Aigbokhan, B. Much has been said about the effects of income inequality on economic growth. Result also showed that 28.33% of the farmers practiced arable crop production and invested an average amount of N654, 345.09. [online] Mpra.ub.uni-, muenchen.de. decrease when the country approaches a further. K-S test determined data normality (P< 0.05) ; The results showed a significant relationship between the success of countries at the Beijing 2008 Summer Olympic Games and all demo-economic (Population, GDP, Health Expense, Team size, Ex-host) factors. More so, concerted effort is needed to strengthen small and medium enterprises through tax holiday, access to finance and temporal protection so that more employment would be generated which in turn will reduce poverty and inequality. Capital formation in an economy: Meaning, significance and, process. 2017]. institutions and economic growth on per household consumption was negative, suggesting that the In examining the causal relation among the variables, the result shows that there is a unidirectional causal relationship running from RGDP to poverty, which means that an increase in GDP in Nigeria causes high level of poverty. The results of stepwise multiple regression analysis showed that among demo-economic factors , team size and population were able to significantly predict the success of countries at the Beijing 2008 Summer Olympic Games (R 2 =0.83 , P<0.0001). However, the slope of the relationship remains inconclusive as a positive relationship has been reported by some (Aigbokhan, 2008;Ijaiya et al., 2011;Raymond, 2014;Ebunoluwa & Yusuf, 2018) and a negative relationship by others (Bakare, 2012; ... That paper dealt with the idea of an inflation tax and focused on the Cantillon effect (other redistributive mechanisms of inflation) as a leading cause of income inequality. Documents/Annual_Report_2014_-Full.pdf [Accessed 9 Apr. considered in previous studies and how they could impact income inequality. (2008). (2002) ‘The political economy of the Kuznets, curve’, Review of Development Economics, 6(2), pp. Available at: http://observer.american.edu/cas/economics/ejournal/upload/Global_Majority_e_J. We also investigate how changes in the income distribu- [online] Available at: The main concern of this study is to examine the relationship between per capita national income (economic growth) and income inequality in Nigeria from 1981 to 2017. In order to determine the shape of the Kuznets curve, a quadratic function was estimated, and the results confirm that the Kuznets inverted-U curve does not hold for Nigeria. Nigeria’s Human Development Summary Statistics by Zones (, 2012. It is a major part of how we understand socioeconomic statuses, being how we identify the upper class, middle class, and working class. The causality result 3351–3361. Andale, (2016). When net inequality is held constant, public redistribution negatively affects economic growth. as a result slows output growth. The fit of the regression significantly improved when education was added to the model. period 1984-2018, using the Autoregressive Distributed Lag cointegration technique. The evidence compiled in this paper suggests that the current monetary system contributes to the growth of inequality through several channels. -ReStud1997.pdf (Accessed: 4 November 2016). Oral Health Country/Area Profile Programme. Poverty was measured endstream endobj startxref By rewarding hard work, there will be a boost to productivity leading to a higher national output – so everyone can benefit. of Kuznets curve in various countries. Poverty and Income Inequality in Nigeria: Any Causality? h�bbd```b``9"C���v,. 815 0 obj <> endobj Banya, B. This Using a sample of seventy developing countries from 1990–2015, we find that bond ratings have significant, yet indirect, effects on income inequality. Humanity & Social Sciences Journal, [online] 3(1), pp.70-80. Redistribution hampers investment and raises fertility rates. Income inequality has become a major public issue all over the world. Much has been said about the effects of income inequality on economic growth. seems to be consistent with evidence from developing countries like Nigeria. Furthermore, in the short run, the interactive effect of unskilled to skilled labor market which in turn increases productivity and decreases. High‐income countries benefit most in that the positive effect of globalisation on economic growth is strongest among them than on other income groups, and they experience a less‐pronounced widening of income inequality. Research limitations/ implications - The cross-sectional correlational research design does not permit cause-and-effect inferences to be made. It is also the largest oil exporter, HDI value in 2005 was 0.467, which put the country in the low human development. The purported consequences of the rich-poor divide are exceedingly diverse. The on-going debate rotates around possible negative as well as positive effects of inequality on growth, characterized to work through different transmission channels, and considering the complex nature of both phenomena. The impact of CPI on inequality is statistically significant. Evidence from a current panel of harmonized worldwide data highlights a robust negative effect of income inequality on economic growth that we trace back to its transmission channels. This finding corroborates the inference drawn by, among other authors, Liu et al. Income Inequality and Inflation: The Cross-Country, Evidence. Growth%20and%20Poverty_3.22.16.pdf [Accessed 22 Dec. 2016]. short and long run. Voitchovsky does find parallel positive and negative effects in a single model by using different parts of the income distribution. ll in the gap and contribute to already existing literature on income inequality. Purpose - This paper seeks to examine the roles of personality, vocational interests, academic achievement and some socio-cultural factors in educational aspirations of secondary school adolescents in southwestern Nigeria. The ADF unit root test was conducted for each of the variables in this model at levels. In economics terms, income inequality is the large disparity in how income is distributed between individuals, groups, populations, social classes, or countries. 0 ... this is caused as low income = low purchasing power and less consumer sovereignty. above and whether the coefficients are statistically significant. tends to generate positive effects of inequality on investment and growth. Nigeria economy: 1977-2005’, International Business and Management, 5(1), pp. Poverty in Nigeria: Some dimensions and contributing. Fields, G.S. Similarly, the Kuznets U-shaped hypothesis was found to be true. The statistical sample was 86 winner countries in these games. and the effect of redistribution. steepness and direction of the curve (Barge, 2016). Inequality matters. Bivariate and multivariate regression analysis showed that countries with a high national income and low income inequality have a strong negative association between sugar consumption and caries (B = -2.80, R2 = 0.17), whereas countries with a low income and high income inequality have a strong positive relationship between DMFT and per capita sugar consumption (B = -0.89, R2 = 0.20). Entrepreneurs require rewards. The relationship between per capita consumption of sugar and dental caries is modified by the absolute level of income of the country, but not by the level of income inequality within a country. Available at: http://doi.org/10.1016/j.econmod.2010.04.004 [Accessed 9 Apr. significant. This is one of the main causes of high inequality in the country. A. countries with greater inequality have a higher level of inflation. African Economic Outlook. N- Inequality divides society and reduces social cohesion and non-material welfare. : income inequality, economic growth, Kuznets hypothesis. Currently, on our planet, there is a high level of inequality in the distribution of wealth and income. All data are found to be stationary at first difference by using Augmented Dickey-Fuller (ADF) test. Its purpose is to observe the impact of income inequality on economic growth in Nigeria, examine whether Kuznets curve holds and suggest probable and effective policy measures based on the findings to help reduce the gap between the rich and the poor. 863 0 obj <>stream The study employed descriptive and inferential design to investigate the relationship among the variables (Inequality proxied by GINI index, GDP per capita, GDP per capita squared and gross national savings) used in this study. Originality/value - This research provides basis for the need to consider personality, interests and socio-cultural factors in addition to cognitive attainment when explaining the adolescents' educational aspirations. Compared to the effects that income inequality has on men, the effects of income inequality on women have been relatively neglected. (1993) Income distribution and Macroeconomics. Primary data was collected with the use of semi structured questionnaire. institutions and economic growth played substitutive roles in poverty reduction in the short run. Join ResearchGate to find the people and research you need to help your work. Also, employment rate, inflation rate, Gross Domestic Product and social spending were true determinants of income distribution in the Nigerian economy during the period under review (1977-2005). 2017]. Based on these does the impact of Gini index on growth differ among GCC countries ? PLAY. STUDY. There are some important paradoxes in the dynamics of happiness indices and the relative levels of these indices for various countries and different populations groups. and Peng, A. The results indicate that GDP granger causes income inequality in Nigeria. The results of Johannsen co-integration test confirm that there is a long-run positive significant relationship among the examined variables. population growth is consistent during the time period. Transparency International - Nigeria, Transparency.org. 841 0 obj <>/Filter/FlateDecode/ID[<534F5BE93D49ED8759520980C74B43F0>]/Index[815 49]/Info 814 0 R/Length 126/Prev 948871/Root 816 0 R/Size 864/Type/XRef/W[1 3 1]>>stream The estimation result of the fertility model indicates a positive relationship between income inequality and fertility rate, i.e., as inequality in income increases, the fertility rate tends to rise. A study of china's income inequality and economic growth -, Kuznets curve revisited. Explaining inequality and welfare status of households in, rural Nigeria: Evidence from Ekiti state. Cross sectional, multiple regression analysis. Available, at: https://www.econ.nyu.edu/user/debraj/Courses/Readings/GalorZeira.pdf, Granger, C. (1969). Prior studies on the inequality–happiness link have yielded mixed results and tend to focus on mechanisms that explain the negative effects of inequality. Inequality at the top end of the distribution is positively associated with growth, while inequality lower on the distribution is negatively related to … Top 20 Largest Economies in Africa 2016. perform a granger casualty test to determine the direction of the relat, between income inequality and economic growth. theory approach. the World Bank and datasets found in the literature. The first two effects are harmful for growth and reinforced by limited credit availability. Regional convergence of growth. (1976) Journal of development economics 3 (1976) 307-342. An empirical study on the relationship. United Nations Food and Agricultural Organization data were used for per capita sugar consumption. Education. Looking at 175 countries and multiple variables, the study finds that there is a positive relationship between entry regulations and income inequality. Relationship between per Capita National Income and Income Inequality: Is the Kuznets Hypothesis True for Nigeria? The granger causality test was also conducted to determine the direction of the relationship between income inequality and economic growth. The paper used bound testing approach to cointegration and Granger causality test to determine the relationship between poverty, inequality and economic growth in Nigeria. Although the effects of globalization on income inequality has received much attention, missing from the discussion is the role played by credit rating agencies (CRAs) on income inequality. It argues that the reasons for this absurdity include jobless growth, a non-pro-poor growth, and failure of poverty alleviation initiatives to address structural transformation required for a sustainable growth, employment generation, and bridging income gap within the economy. [online] Available at: http://www.economicsdiscussion.net/capital-, Dali, S. (2015). Two institutional 2017]. In addition, the result revealed that the RGDP Granger causes the literacy level without a feedback. 2017]. Case study research: Design and methods. and sensitivity to various econometric approaches (Fawaz et al, 2014). variance as shown by the heteroskedasticity tests. Less equal societies tend to have less educated populations and higher fertility rates, but not necessarily lower investment shares. between poverty, inequality and economic growth in Nigeria. in the presence of credit markets' imperfections and indivisibilities in investment in human capital, the initial distribution This suggests that error variances are all equal. Ibrahim, S. and Nuruddeen, T. (2014). It is worthy of note that the link between economic growth and poverty can be altered in the presence of Specifically, this research is designed to: rises at first and then falls along with the country’s income level. (2015) Income inequality. vocational interests, academic achievement, socio-cultural factors and educational aspiration were obtained from the students. Income inequality and racial bias are pressing social issues and the topics of extensive scientific inquiry. A multi-stage random sampling technique was used to select 120 small holder arable crop farmers. Available at: http://projects.iq.harvard.edu/gov2126/files/macrae_1982.pdf [Accessed 26 Sep. Medhekar, R., Holliday, D., Baden, D. and Dhongde, S. (2015). © 2008-2020 ResearchGate GmbH. Specifically, if the income share of the top 20 percent (the rich) increases, then GDP growth actually declines over the medium term, suggesting that the benefits do not trickle down. Based on the gap we discovered in the literature review, in this chapter, report and a popular statistics database. Relationship: Role of Credit Market Imperfection. http://aeconf.com/articles/may2002/aef030105.pdf [Accessed 14 Mar. Investigating Causal Relations by Econometric Models and Cross-Spectral Methods, Determinants of Income Distribution in the Nigeria Economy: 1977-2005, Distribution and Development: A Summary of the Evidence for the Developing World, Education, Income Inequality, And Mortality: A Multiple Regression Analysis. Institutions can serve as doi: 10.3968/j.ibm.1923842820120501.1020. Journal of Modern Accounting and Auditing, 11(2). Ogbeide, E.N.O. referred to as the pro-inequality argument. (2012) ‘Determinants of income distribution in the. Macroeconomics and development: Nigeria: The Restrained. [online] Available at: http://www.africaranking.com/largest-economies-in, Ravallion, M. (1997) Can high inequality countries escape poverty EL. Heteroskedasticity Test: Breusch-Pagan-Godfrey, Acemoglu, D. and Robinson, J.A. Quah, D. (2002) One Third of the world’s growth and inequality. The study Journal of Poverty, [online] 21(1), pp.61-79. Numerous scholars have empirically established the relationship between economic growth and poverty (Fields, 2000;Kanayo, 2014;Nuruddeen & Ibrahim, 2014;Fosu, 2017). -VA-Macrodev.pdf [Accessed 30 Jan. 2017]. ineqgrowth_0.pdf [Accessed 31 Dec. 2016]. portal.org/smash/get/diva2:572663/FULLTEXT01.pdf [Accessed 24 Jan. 2017]. Hierarchical multiple regression analysis was used to analyse the data. There is mixed evidence in the literature regarding the relationship between income inequality and economic growth. The independent effect of income inequality on health/social problems shown in some studies looks small in statistical terms. Results: The income inequality effect disappeared when percentage of people without a high school diploma was added to the regression models.
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