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ARTICLE SUMMARY

Title: Rural Household Poverty and Public Spending in Nigeria
Author(s): EWUBARE Dennis Brown
Abstract: This study examines the impact of public spending on rural household poverty in Nigeria. The specific objectives focused on the impact of public spending on economic and social services, and rural access to electricity on rural poverty headcount. Data for the variables were sourced from World Development Indicators and Central Bank of Nigeria Statistical Bulletin. The techniques for analysis and other diagnostic tests include autoregressive distributed lag (ARDL) model, Phillips-Perron unit root test and cointegration tests amongst other post-estimation tests. The results of the unit root test indicate that the variables are mixed integrated. On this premise, the ARDL bounds test was utilized for examining cointegrating among variables. The result clearly indicates that there is long run relationship among the variables. This implies that the null hypothesis of no long run relationship is rejected. The estimated ARDL model shows that the contemporaneous value of government public spending on social and community services negatively impacted on rural poverty headcount in the short run. The implication of this finding is that education and healthcare expenditures supports government's efforts in reducing poverty in the rural area. More so, the long run results indicate that rural access to electricity has significant negative effect on rural poverty. This finding is very welcoming as it shows that access to social infrastructure has the potential towards depleting rural poverty headcounts in Nigeria. With insignificant effect of expenditure on economic services on rural poverty headcount, this study cast doubts on the effectiveness of agriculture in poverty reduction. Thus, it is recommended that policy makers should increase investment in social services and ensure that power sector reforms provide rural dwellers more access to electricity with a view to reducing rural poverty headcount.
Keywords: Public Spending, Economic Services, Social Services, Electricity Access and Rural Poverty

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Mr. Peter P. Finebone

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