Impact of Global Value Chain on Multidimensional Poverty in Nigeria

Tosin Ovayioza Yisau, Dennis Ewubare, Sancho Chuwku and Isaac Olubiyi Oladosu
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Tosin Ovayioza Yisau: Department of Economics, Rivers State University, Nigeria.
Dennis Ewubare: Department of Economics, Rivers State University, Nigeria.
Sancho Chuwku: Department of Economics, Rivers State University, Nigeria.
Isaac Olubiyi Oladosu: Department of Economics, University of Port Harcourt, Nigeria

International Journal of Research and Innovation in Social Science, 2024, vol. 8, issue 3s, 888-905

Abstract: The purpose of this research was to examine the impact of the global value chain on multidimensional poverty in Nigeria. An empirical evaluation of the study was conducted spanning a duration of thirty-three years, specifically from 1990 to 2022. The backward GVC participation index, the forward GVC participation index, and the total GVC participation index served as surrogates for the global value chain, whereas the multidimensional poverty index was utilized as a proxy for multidimensional poverty. The research employed annual time series data primarily obtained from the World Bank’s World Development Indicators (WDI) and the National Bureau of Statistics (NBS). The employed methods for data analysis consist of the Augmented Dickey Fuller (ADF) statistic, the Bounds Cointegration test, the Correlation Matrix, and the ARDL approach. The findings from the unit root test indicated that the variables exhibited mixed stationarity. Specifically, I(0) and I(1). The results of the bounds cointegration test indicated that the multidimensional poverty index, the backward GVC participation index, the forward GVC participation index, and the total GVC participation index are all related in the long term. Last but not least, the backward GVC participation index, forward GVC participation index, and total GVC participation index have a negative and statistically significant short-term and long-term impact on the multidimensional poverty index in Nigeria, according to the ARDL results. The study’s conclusions, derived from its findings, indicate that the global value chain significantly contributes to the mitigation of multidimensional poverty in Nigeria. It was suggested, among other things, that in order to alleviate poverty, the government should intensify policy measures to further strengthen the business and regulatory environment so that domestic firms and globally successful transnational corporations would be enticed to invest in GVC.

Date: 2024
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