Effect of Income Inequality on the Economic Growth of Nigeria

Abstract

This study investigated the effect of income inequality on the economic growth in Nigeria from 1981-2021, Ordinary least squared (OLS) method of data analysis was adopted because of its Best Linear Unbiased Estimators (BLUE) properties. The variables used were sourced from Central Bank of Nigeria Statistical Bulletin. The variables used were income inequality, employment, education, poverty and government capital expenditure and real gross domestic product. The collected data were sourced from central bank of Nigeria (CBN) statistical bulletin 2021 The study adopted the unit root test, co-integration approach, as well as Error Correction Mechanism. E- View software was used for the analysis. The study found that: Income inequality has no significant effect on economic growth in Nigeria: Employment rate has significant positive effect on economic growth in Nigeria: Poverty has significant negative effect on economic growth in Nigeria: The study recommends that, there is need for the government to change the education system to ensure that new training methods, which develop existing skills and create skills where they do not exist are implemented. There is also a need to put in place training policies that will strengthen the competitive capacities of the work force and increase the competitiveness. The provision of employment opportunities is the peak of any economic and social reform plan that aims to improve quality of life by achieving sustainable human development.

Unlocking the Path to Inclusive Growth: Examining the Impact of Financial Inclusion in Developing Economies

“…Barro (2013) has similar finding in their study that domestic investment encourages economic growth. Money supply is found strong significant and positive effect on growth which supports the theoretical argument that money supply promotes economic growth (Ershad and Mahfuzul, 2017;Chude and Chude, 2016). The elasticity of the money supply is 0.11, which refers that a 1% raise in money supply leads to a 0.11% raise in economic growth.…”

Corporate Tax and Financial Performance: Evidence from Listed Consumer Goods Firms in Nigeria

“…The finding also agrees with the results of Yoke and Chan (2018), who affirmed that when the CIT burden increases, the level of financial performance decreases. However, this finding contradicts the study of Chude and Chude (2015), Taiwo and Oyedekun (2022)…”

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