Income inequality, unemployment, and Poverty in Nigeria: a vector autoregressive approach

Akinbobola, Temidayo ; Saibu, Muibi Olufemi (2004-09)

Routledge Informa Ltd Registered,volume7,no3,p.175-183.


The main features of poverty are low levels of consumption and income, a fact-of-life in most African countries. This paper analyzes the fundamental trends of per capita income, government capital expenditure, the human development index, and the rate of unemployment in the Nigeria. A vector autoregressive model finds that: A reduced unemployment rate improves human development and consequently reduces poverty. As growth in public capital expenditure rises, unemployment falls and the human development index improves. Therefore, infrastructure-based policies, which initially reduce unemployment, will also improve the living conditions of Nigerians in the end.