|Household Welfare And Income Poverty In Nigeria
|EWUBARE Dennis Brown
|This study examined the relationship between household welfare and income poverty. The gross domestic product (GDP) per capita, gross national income (GNI) per capita and rural access to electricity formed the basis for measuring household welfare. Time series data on the variables obtained from the National Bureau of Statistics (NBS) and World Development Indicators (WDI) were analyzed using descriptive statistics, unit root and cointegration tests alongside vector error correction method (VECM). The findings from the unit root test revealed that all the variables are stationary at first difference, which implies that they all are integrated of order one. In addition, the bounds cointegration test result revealed that long run relationship exists between the underlying indicators of household welfare and income poverty during the study period. The VECM estimates showed that GDP per capita has a significant positive effect on poverty headcount in the long run. This indicates that the growth in population's share of GDP is associated with the growing level of poverty. On the other hand, GNI per capita has a significant negatively effect on poverty headcount in both short and long run. This showed that GNI per capita played a substitutive role in poverty reduction in Nigeria. At the same time, rural access to electricity impacted negatively on poverty headcount. This indicates that an increase in rural access to electricity reduces the level of energy poverty, and in so doing creates opportunity for poverty reduction in Nigeria. On the basis of the findings, this study recommends that policymakers should put in place measures to promote equitable distribution of the national income to the Nigerian population to provide more opportunities for meaningful reduction in poverty.
|Household welfare, income poverty, GDP per capita, GNI per capita and electricity access