– The Determinants of Regional Poverty in Nigeria –
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ABSTRACT
This study aimed at investigating regional differentials in Nigeria, and therefore achieved this through two objectives; First to determine the poverty levels of regions and then to ascertain the determinants of regional poverty.
This study was motivated by the regional inequalities that exist in Nigeria, wherein one of the major macro-economic objectives is to ensure equitable distribution of National resources.
The study employed the 2009 National House hold survey with the use of the FGT index and multinomial logit regression to attain these objectives.
The results suggest that poverty is significantly varying across regions in Nigeria with the Northern Region (North-Central, North-East and North-West) being poorer than the Southern region (South-South, South-East, and South-West).
This therefore shows that there exists huge inequality of regions as some geo-political zones are poorer than others.
Furthermore the multinomial logit results suggest that the significant determinants of poverty in the various regions are; literacy rate, sector (urban/rural), occupational group, and per-capita expenditure on health.
TABLE OF CONTENTS
Title Page – — – – – – – – – i
Approval Page- – – – – – – – – ii
Dedication – – – – – – – – – iii
Acknowledgement – – — — – – – – iv
Abstract – – – – – – – – – v
Table of Contents – – – – – – – – vi
CHAPTER ONE: Introduction
1.1 Background of study – – – – – – – 1
1.2 Statement of the problem – – – – – – 3
1.3 Objective of the study – – – – – – 4
1.4 Research hypothesis – – – – – – – 5
1.5 Scope of the study – – – – – – – 5
1.6 Significance for the Study – – – – – 5
1.7 Limitations of the study – – – – – – – 5
1.8 Organization of the study – – – – – – – 6
1.9 Dimension of Poverty in Nigeria – – – – 6
1.9.1 Poverty Condition in Nigeria – – – – – – 7
1.9.2 Poverty in Urban and Rural Areas of Nigeria- – – – 8
CHAPTER TWO: Literature Review
2.1 Theoretical Literature – – – – – – – 11
2.1.1 Causes of Poverty – – – – – – – 12
2.1.2 Regional Level Characteristics – – – – 12
2.1.3 Community Level Characteristics – – – – – -13
2.1.4 Household and Individual Level Characteristics – – – -14
2.1.5 Demographic Characteristics – – – – – – -14
2.1.6 Economic Characteristics – – – – – – -15
2.1.7 Social Characteristics – – – – – – – -16
2.2 Explanations for Spatial Welfare Disparities: Concentration and Geography17
2.3 Empirical Literature – – – – – – -19
2.4 Limitations of the Previous Study – – – – – -27
CHAPTER THREE: Research Methodology
3.1 Theoretical Framework – – – – – – – -29
3.2 Model Specification for Decomposing Poverty by Regions – – -31
3.3 Model Estimation for the Determinants of Regional Poverty – – -32
3.4 Data and Features – – – – – – – -34
CHAPTER FOUR: Presentation of Results
4.1 Presentation of the Results for Poverty Decomposition by Regions – -35
4.2 Presentation of the Results of the Determinants of Regional Poverty – -38
CHAPTER FIVE: Summary, Conclusion and Policy Implications
5.1 Summary – – – – – – – – – -47
5.2 Conclusion – – – – – – – – -48
5.3 Policy Implications – – – – – – – -48
5.4 Suggestions for Further Research – – – – – – -50
References – – – – – – – – – -51
Appendix
INTRODUCTION
1.1 Background of the study
According to Okurut,Odwee and Adebua(2002) “Poverty alleviation is a key policy debate in recent development literature”.
The authors noted that many researchers of development economics have argued that the fight against poverty is a necessary condition for growth.
The elaboration of policies for poverty alleviation requires a thorough knowledge of the poverty phenomenon as well as an understanding of the efficiency of implemented programmes (Okurut et al., 2002).
The World Bank report (1990) stated that the burden of poverty is spread evenly among regions of the developing world, among countries within those regions and among localities within those countries.
According to the report, nearly half of the world’s poor live in south Asia, a region that accounts for about 30% of the world’s population.
People in sub-Saharan Africa, along with those in south Asia, are among the poorest in the world, both in real incomes and in access to social services. About 45% of the approximately 590 million people in sub-Saharan Africa live below the national poverty lines (World Bank, 1990).
Similarly, Skoufias and Lopez-Acevedo (2009) noted that in spite of the economic growth experienced by Latin American countries, poverty is still high and tends to be geographically concentrated.
Governments in the region have responded proactively to these regional inequalities in their countries, introducing diverse poverty alleviation programs.
REFERENCES
Aigbokhan B. E. (2000). Poverty, Growth and Inequity in Nigeria: A case study. AERC Research Paper 102.
Aliyu S. and Garba A. (2012).The implications of Child poverty on the Nigerian Economy.European journal of Globalisation and development research, 6 (1).
Anyanwu, J.C. (2010) “Poverty in Nigeria: A Gendered Analysis”, the African Statistical Journal, Volume 11
Apata,T.G. Apata, O.M. Igbalajobi,O.A. and Awoniyi,M.O. (2010) “Determinants of rural poverty in Nigeria: Evidence from small holder farmers in South-western, Nigeria”, Journal of Science and Technology Education Research Vol. 1(4), pp. 85 – 91
Baulch, B. Chuyen,T. and Haughton,D. (2004) “Minority Development in Vietnam: A Socio-Economic Perspective”, in Glewwe,et al (2004) “Economic Growth, Poverty and Household Welfare in Vietnam”, World Bank report
Glewwe, P. Agrawal,N. and Dollar,D. (2004) “Economic Growth, Poverty and Household Welfare in Vietnam”, World Bank report
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