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THE IMPACT OF POVERTY RATE ON ECONOMIC GROWTH IN NIGERIA

 Format: MS-WORD   Chapters: 1-5

 Pages: 80   Attributes: STANDARD RESEARCH

 Amount: 3,000

 Feb 19, 2020 |  11:05 pm |  1870

CHAPTER ONE

1.1       Introduction

Poverty is a global threat, plaguing both developed and developing nations. It has a devastating effect on developing nations generally but sub-Saharan Africa in particular (Addae-Korankye 2014). Poverty has become pervasive in Nigeria in the last four decades despite the economic boom of the 1970s (Anyanwu 1997; Mohammed-Hashim 2008; Obi 2007). Similarly, it was discovered that about 60% of Nigerians live in poverty despite the country’s enormous oil wealth (Sadiq 2007). It can be argued that poverty varies from one subgroup to another such that poverty is seen in all its manifestations and its magnifications as antithetic to economic growth (Rodrigues 2009). Globally, poverty has been recognised as a major blemish in developing economies ever since economists began to take interest in the third world (Killick 1981). On the whole, the Nigerian economy depends so much on the exportation of oil that nearly all its budgetary revenues come from oil earnings sold in the international market. In 1973, most economic indicators such as real per capita income, real wages and private consumption were positively impacted by the first oil shock, which caused a dramatic increase and sharp rise in them. Similarly, income inequalities between urban and rural areas increased sharply, primarily because of the oil boom and its spinoffs (Anusionwu & Diejomoah 1981). However, the international price of oil decreased or fell constantly between 1980 and 1985 and brought about worsening economic conditions; there was a sharp fall in the standard of living and the biting hand of poverty was ushered in as a leading problem in Nigeria (Okunmadewa 1996). To this end, the oil boom was recognised to have contributed immensely to the large appreciation of the Nigerian naira, which subsequently caused adverse effects to agriculture as a non-oil tradable that had been the mainstay of the Nigerian economy.

1.2       Statement of the problem

          In Nigeria, the nature of the determinants of poverty can be traced to low or declining level of economic growth, income inequalities, unemployment, corruption, bad governance, diversion of funds into non-developmental projects, fund embezzlement, inappropriate macroeconomic policies, inadequate endowment of human capital, debt or borrowing, labour market deficiencies that were caused by limited growth in job creation, low productivity, low wages in the informal sector and poor development of human resources. Poverty can also arise through structural deficiencies such as environmental degradation, worker retrenchment, frequent and increasing crime rates and violence, decrease in the real value of safety nets, structural changes in the family as well as the neglect of the agricultural sector, non-development of infrastructural facilities, lack of enabling environment for infant industries, epileptic power supply, depreciation of the Nigerian currency (naira) and the military government’s inability to properly manage the Nigerian economy (Ajakaiye & Adeyeye 2001; NPC 2004; Ogwumike 2001).

1.3     Research Questions

          Given analysis of problems stated above, this study seeks to answer the following questions:

i.        What is the nature of the relationship between poverty and economic growth in Nigeria?

ii.      What is the Impact of poverty on economic growth in Nigeria?

1.4     Objective of the study

          The main objective of this study is to examine the impact of poverty rate on economic growth in Nigeria. The specific objectives of the research are:

i.        To examine the nature of the relationship between poverty and economic growth in Nigeria?

ii.      To determine the impact of poverty on economic growth in Nigeria

1.5    Research Hypothesis

          First Hypothesis

Ho: There is no significant relationship between poverty and economic growth in Nigeria

H1: There is a significant relationship between poverty and economic growth in Nigeria

Second Hypothesis

H0: There is an inverse relationship between poverty and economic growth in Nigeria

H1: There is a direct relationship between Poverty and economic growth in Nigeria.

1.6      Justification of this study

          The aim of this study is to contribute to existing knowledge on economic growth and poverty in the nation Nigeria. Thus this study would expose the relationship between poverty and economic growth and to check the relationship between these two issues.

1.7       Scope and Limitation of this study

          This study covers the period 1985 to 2015, a period of 30 years which is a large sample size. This study is limited to Nigerian economy. Issues faced while undergoing this study is difficulty is obtaining recent and relevant data. Other limitations are financial constraint and time constraint. 

1.8      Organization of the study

          This study is organized into five chapters. Chapter one which includes general introduction, Chapter two deals with Literature review, Conceptual analysis, theoretical framework and empirical analysis, Chapter Three presents and analysis the Methodology of the study, Chapter four handles the presentation, analysis and interpretation of results, Chapter five presents summary, conclusion and recommendations.

References

Aiyedogbon, J. O., & Ohwofasa, B. O. (2012) Poverty and youth Unemployment in Nigeria, 1987-2011. International Journal of Business and Social Science: 3(20), 269-279.

Abiola and Olaopa (2008), Engaging Youth Employment in Nigeria with Youth and job provision.

Aboyade (1987: 9) Relationship between Income and Poverty.

Aluyo, V. (2002), World Bank, women and poverty alleviation. The Punch Newspaper of Nigeria, April 28, 2000.

Ayinde O.E. (2008) “Empirical Analysis of Agricultural Growth and Unemployment in Nigeria” African Journal of Agricultural Research 3(7): 20-25

Basaliwa M., Opio-Omoding J. and Oladapo O. (2005) “Agricultural and Rural Institute support Project” African Development Fund, Federal Republic of Nigeria.

CBN,2009.StatisticalBulletin.[Online]Available:http://www.cenbank.org/OUT/PUBLICATIONS/STATBULLETIN/RD/2009/STABULL-2009.PDFAccessed:5 November, 2010.CODESRIA Books series Ibadan.27-30.

Emeh, I. E., Nwanguma, E. O., &Abaroh, J. J. (2012). Engaging Youth Employment in Nigeria with Youth Development and Empowerment Programs: Lagos State in Focus. Interdisciplinary Journal of Contemporary Research in Business: 4(5), 1125-1141.

(Encyclopedia Britannica, 1981: 165) What is poverty.

Fasipe A. (1990) “Nigeria External Debit” Ile Ife ObafemiAwolowo University Press.

 (Hammer, Healey and Naschold, 2000) Difficulties in reducing poverty, The Nigerian experience: Poverty Alleviation in Nigeria, Selected Papers for the 2000.

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