THE IMPACT OF INCOME INEQUALITY AND POVERTY ON THE ECONOMIC GROWTH IN NIGERIA

Mukolu; M.O; Illugbemi; A. O; Adeleke K.O

Volume : VIII, Issue : VII, July - 2019

THE IMPACT OF INCOME INEQUALITY AND POVERTY ON THE ECONOMIC GROWTH IN NIGERIA

Mukolu, M. O, Illugbemi, A. O, Adeleke K. O

Abstract :

This study focused on investigating the comparative analysis of the impact of income inequality and poverty on Nigeria economic growth between 1986 and 2015. The source of data for this study is secondary; the main tool of analysis is the error correction model and the co-integration method for this research study. The result of the study showed clearly that a very high level of unemployment and low level per capital income of the populace significantly impact the economy negatively; these are consistent with the few studies that have investigated on the impact of income inequality and poverty on economic growth. This study thus concludes that since inequality and poverty are two major macroeconomic problems that are eating up the country and are inter woven and the indirect channel of unemployment contributing to the problem, policy measure toward the combat of one should not neglect the other as the efficacy of the policy measures is related to the other problem. Employment has been identified as an important outcome of any welfare intervention. It recommended that employment should be one of the major tools to be considered in the fight against poverty and inequality in Nigeria. This should not be left for the government alone, the private sectors are also encouraged to be actively involved in this as well as individuals through imbibing the spirit of entrepreneurship.