CAUSALITY FLOW BETWEEN POVERTY, INCOME DISTRIBUTION AND ECONOMIC GROWTH IN NIGERIA

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ABSTRACT

The issue of poverty has continued to pose serious threat to the continued cordial existence of an economy like Nigeria. Issues pertaining to poverty and inequality have also continued to receive wider attention among scholars in various economies of the globe. However, there seems to be a gap in literature as to the existence of a causal relationship between Poverty and Inequality. Therefore, this study seeks to establish the causality between Poverty and Income Inequalities on Economic Growth in Nigeria. This study also seeks to find out whether or not there is a causal relationship between Poverty, Inequality and Economic Growth in Nigeria. Adopting Ordinary Least Square method for regression, the study finds out that there is no causality between Poverty and Economic growth, while there is a unidirectional causal relationship between Income Inequalities and Economic Growth.

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