Poverty reduction efforts in Nigeria 1996 – 2004: a micro level analysis of the relative importance of income growth and redistribution

John C. Odozi and Timothy T. Awoyemi

MPRA Paper from University Library of Munich, Germany

Abstract: A common narrative on Africa’s development process is that specific country policies of income growth and redistribution are necessary for poverty reduction. For growth theoreticians, economic growth must be pursued while for political economists, redistribution is necessary to cushion the detrimental effect of reform policies. These views appear to converge in the many policies and programmes implemented over the years by the Nigerian government. In light of this, we accounted for the effect of these variables using two recent national household survey data sets collected by the National Bureau of statistics in 1996 and 2004 upon which we applied three commonly used poverty indices(FGT) and the Shapely decomposition analytical framework. For robustness, we carried out complementary analysis using the stochastic dominance test and growth incidence curve. Results showed that for the whole country, rural and urban areas respectively, income growth component accounted for -16%, -10% and -10%, while the redistribution component represented -5%, -7% and -4%, suggesting on the average a poverty reducing role. However, a more disaggregated pattern of changes in per capita income reveal that the poor did not benefit much.

Keywords: Income growth; distributional shift; poverty; household; pro-poor growth (search for similar items in EconPapers)
JEL-codes: I3 I30 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/36208/1/MPRA_paper_36208.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36208

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().