Abstract

This study examines the relationship among poverty, inequality and economic growth in Nigeria by employing macroeconomic variables which include GDP growth rate, per capita income, literacy rate, government expenditure on education, and government expenditure on health. Time series data over the period from 1980 to 2012 were fitted into the Ordinary Least Square (OLS) regression equations using various econometric techniques such as Augmented Dickey Fuller (ADF) unit root test, Phillips-Perron unit root test, Johansen co-integration test, and Error Correction Mechanism (ECM) technique. The OLS results reveal that GDP growth rate increases inequality, but reduces poverty in the country. It is thus suggested that, aside boosting the GDP, an increased effective government spending on education and public health facilities, as well as programmes that are meant primarily for the non-privileged like children, women and the poor in general, be provided for poverty and inequality to reduce in the country.

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