BazEkon - The Main Library of the Cracow University of Economics

BazEkon home page

Main menu

Nzeribe Geraldine Ejiaka (Nnamdi Azikiwe University, Awka), Ezenekwe Uju Regina (Nnamdi Azikiwe University, Awka), Uzonwanne Maria Chinecherem (Nnamdi Azikiwe University, Awka), Metu Amaka G. (Nnamdi Azikiwe University, Awka), Madichie Chekwube V. (Lagos Business School, Pan-Atlantic University, Lagos)
Poverty-Growth-Inequality Triangle: Empirical Evidence from Nigeria
Torun International Studies, 2022, nr 2(16), s. 85-102, tab., rys., bibliogr. 59 poz.
Ubóstwo, Modele wzrostu, Analiza empiryczna
Poverty, Growth model, Empirical analysis
Purpose: Eradicating poverty is critical to achieving sustainable development. This study appraised the relationship between poverty, economic growth and income inequality in Nigeria and the interaction effect of growth and income inequality on Nigeria's poverty level. Methodology/approach: The study applied Auto-Regressive Distributed Lag (ARDL) model on annual data between 1980 and 2018. Findings: The study established that per-capita economic growth has a positive but insignificant relationship with poverty in the long run. The result also showed that inequality had a positive relationship with poverty, while the interaction of growth and inequality had a negative relationship with poverty. The Toda-Yamamoto test of causality reveals a bidirectional connection between economic growth and poverty, a unidirectional relationship from inequality to poverty, and a bidirectional relationship between growth-inequality interaction and poverty. Originality/value: The study contributes to the literature by examining the PGIT hypothesis, specifically in Nigeria. In contrast to earlier inquiries, this study investigates the interaction effect of growth and inequality on poverty. We also incorporate social development indicators into our empirical PGIT model to aid in the formulation of poverty-eradication programs in Nigeria.(original abstract)
Full text
  1. Addison, T., & Cornia, G. (2001). Income distribution policies for faster poverty reduction (WIDER Working Paper Series No. DP2001-93). World Institute for Development Economic Research (UNU-WIDER).
  2. African Development Bank. (2019, March 28). Nigeria economic outlook [Text]. African Development Bank; African Development Bank Group.
  3. Aigbokhan, B. E. (2000). Poverty, growth, and inequality in Nigeria: A case study. African Economic Research Consortium.
  4. Aigbokhan, B. E. (2000b). Poverty alleviation in Nigeria. Annual Conference of the Nigerian Economics Society, 3(1), 61-79.
  5. Aigbokhan, B. E. (2008, February). Growth, inequality and poverty in Nigeria (ACGS/MPAMS Working Paper No. 3).
  6. Ajibola, A. A., Loto, M. A. & Enilolobo, O. S. (2018). Poverty and inequality in Nigeria: Implications for inclusive growth. Nile Journal of Business and Economics, 4(9), 30-51.
  7. Akinlade, R. J., Yusuf, S. A., Omonona, B. T., & Oyekale, A.S. (2011). Poverty alleviation programme and pro-poor growth in rural Nigeria: Case of FADAMA II project. World Rural Observations 3(1). 27-33.
  8. Alesina, A., & Rodrik, D. (1994). Distributive politics and economic growth. The Quarterly Journal of Economics, 109(2), 465-490.
  9. Bader, C., Bieri, S., Wiesmann, U., & Heinimann, A. (2016). Is economic growth increasing disparities? A multidimensional analysis of poverty in the Lao PDR between 2003 and 2013. The Journal of Development Studies, 53(12), 2067-2085.
  10. Barro, R. J. (2000). Inequality and growth in a panel of countries. Journal of Economic Growth, 5(1), 5-32.
  11. Bourguignon, F. (2004). The poverty-growth-inequality triangle (ICRIER Working Paper No. 125).
  12. Bourguignon, F. (2005). The poverty-growth-inequality triangle: With some reflections on Egypt. Egyptian Centre for Economic Studies.
  13. Bradshaw, T. K. (2007). Theories of poverty and anti-poverty programs in community development. Community Development, 38(1), 7-25.
  14. Central Bank of Nigeria. (2019). Annual statistics bulletin. Retrieved March 20, 2020, from
  15. Cheema, A. R., & Sial, M. H. (2012). Poverty, income inequality, and growth in Pakistan: A pooled regression analysis. The Lahore Journal of Economics, 17(2), 137-157.
  16. Cuesta, J., Negre, M., Revenga, A., & Silva-Jauregui, C. (2020). Is it really possible for countries to simultaneously grow and reduce poverty and inequality? Going beyond global narratives. Oxford Development Studies, 48(3), 256-270.
  17. Dauda, R. O. S. (2004). Poverty inequality and socio-economic development policies in Nigeria. In E. Fakiyesi & P. Akano (Eds.), Issue in money, finance and economic management in Nigeria: Essays in honour of Obasanmi Olakanpo. Department of the Economics University of Lagos.
  18. Dollar, D., & Kraay, A. (2002). Growth is good for the poor. Journal of Economic Growth, 7(3), 195-225.
  19. Fanta, F., & Upadhyay, M. P. (2009). Poverty reduction, economic growth and inequality in Africa. Applied Economics Letters, 16(18), 1791-1794.
  20. Food and Agriculture Organization of the United Nations. (n.d.). Sustainable development goals. Retrieved September 9, 2020, from
  21. Forbes. (2020). The world's billionaires: 25th anniversary timeline. Retrieved September 2, 2020, from report/2012/billionaires 25th anniversary timelin.html
  22. Foster, J., & Székely, M. (2001). Is economic growth good for the poor? Tracking low incomes using general means (Working Paper No. 453). Inter-American Development Bank, Research Department.
  23. Fosu, A. K. (2008). Inequality and the growth-poverty nexus: Specification empirics using African data. Applied Economics Letters, 15(7), 563-566.
  24. Gelaw, F. (2009). The relationship between poverty, inequality, and growth in the rural Ethiopia: Micro evidence. 2009 Conference, August 16-22, Beijing, China.
  25. Gibson, J. (2000). The impact of growth and distribution on poverty in Papua New Guinea. Applied Economics Letters, 7(8), 541-544.
  26. Hanmer, L., & Naschold, F. (2000). Attaining the international development targets: Will growth be enough? Development Policy Review, 18(1), 11-36.
  27. Hipsher, S. A. (2013). Private sector's role in poverty reduction. In The private sector's role in poverty reduction in Asia (pp. 1-20). Elsevier.
  28. Hughes, H. (2000). Growth, poverty and income distribution. Journal of the Asia Pacific Economy, 5(1-2), 38-44.
  29. Ishioro, B. O., Orubu, F. O., & Omotor, D. G. (2016). Poverty and socio-economic profile of some selected communities in Nigeria: The use of innovative instruments. West African Institute for Finance and Economic Management, 14(1), 101-132.
  30. IZA (nd). What is economic inequality? Retrieved July 5, 2020, from
  31. Kakwani, N. (2001). On specifying poverty lines [Paper presentation]. Asia and Pacific forum on poverty: Reforming policies and institutions for poverty reduction.
  32. Khemili, H., & Belloumi, M. (2018). Cointegration relationship between growth, inequality and poverty in Tunisia. International Journal of Applied Economics, Finance and Accounting, 2(1), 8-18.
  33. Kolawole, R. J. (2021). Evaluation of poverty alleviation programmes in Nigeria: The demand driven approach perspective. International Journal of Development and Management Review, 16(1), 161-177.
  34. Kolawole, B. & Omobitan, A. (2015). Poverty, inequality and growth in Nigeria: An empirical evidence. Department of Economics, Faculty of Social Sciences, Lagos State University.
  35. Kolawole, B. O., Omobitan, O. A., & Yaqub, J. O. (2015). Poverty, inequality and rising growth in Nigeria: Further empirical evidence. International Journal of Economics and Finance, 7(2), 1-15.
  36. Kraay, A. (2004). When is growth pro-poor? Evidence from a panel of countries (Working Paper No. 3225). World Bank.
  37. Lee, C.-C., Lee, C.-C., & Lien, D. (2020). Income inequality, globalization, and country risk: A cross-country analysis. Technological and Economic Development of Economy, 26(2), 379-404.
  38. Lombardo, V. (2008). Growth and inequality effects on poverty reduction in Italy (Discussion Paper No. 9). Department of Economic Studies, University of Naples. Retrieved from
  39. Metu, A. G., & Kalu, C. U. (2019). Problems of poverty and inequality in Nigeria. In U. R. Ezenekwe, A. G. Metu, E. S. Nwokoye & O. L. Maduka (Eds.), Structure and problems of the Nigerian Economy (pp. 226-251). Fab Anieh Nig Ltd.
  40. Metu, A. G. (2017). Economic growth and development. In U. R. Ezenekwe, K. O. Obi, M. C. Uzonwanne & C. U. Kalu (Eds), Principles of economics II (pp. 164-178). Djompol Printers & Publishers.
  41. Mihai, M., Ţiţan, E., & Manea, D. (2015). Education and Poverty. Procedia Economics and Finance, 32, 855-860.
  42. National Bureau of Statistics (NBS). E-Library. (2019). Accessed July 5, 2020, from
  43. Nkonya, E., Phillip, D., Oredipe, A., Mogues T., Yahaya, M. K., Adebowale, G., Pender, J., Arokoyo, T., Idefoh, F., & Kato, E. (2007). Beneficiary assessment/impact evaluation of the second national FADAMA development project (IFPRI Working Paper). IFPRI.
  44. OXFAM. (2017). Inequality in Nigeria, exploring the drivers. OXFAM International.
  45. Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289-326.
  46. Rajan, R. (2010). Fault lines: How hidden fractures still threaten the world economy. Princeton University Press.
  47. Royuela, V., Veneri, P., & Ramos, R. (2018). The short-run relationship between inequality and growth: Evidence from OECD regions during the Great Recession. Regional Studies, 53(4), 574-586.
  48. Škare, M., & Pržiklas Družeta, R. (2016). Poverty and economic growth: A review. Technological and Economic Development of Economy, 22(1), 156-175.
  49. Soava, G., Mehedintu, A., & Sterpu, M. (2020). Relations between income inequality, economic growth and poverty threshold: New evidences from EU countries panels. Technological and Economic Development of Economy, 26(2), 290-310.
  50. Stephen, B. A., & Simeon, I. A. (2013). Does economic growth reduce poverty in Nigeria? Developing Country Studies, 3(9), 62-68.
  51. Sumarto, S., & de Silva, I. (2013, December). Poverty-growth-inequality triangle: The case of Indonesia (TNP2K Working Paper 04-2013). Retrieved August 5, 2020, from
  52. Tanimu, N., & Saifullahi, S. I. (2014). An empirical study on the relationship between poverty, inequality and economic growth in Nigeria, Journal of Economics and Sustainable Development, 5(26), 20-24.
  53. Toda, H. Y., & Yamamoto, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66(1-2), 225-250.
  54. Wan, G. (2008). Poverty-growth-inequality triangle in China. UNU-WIDER.
  55. World Bank. (2020). The number of extremely poor people continues to rise in Sub-Saharan Africa. Retrieved September 5, 2020, from
  56. Yameogo, C. E. W., & Omojolaibi, J. A. (2020). Trade liberalisation, economic growth and poverty level in sub-Saharan Africa (SSA). Economic Research-Ekonomska Istraživanja, 34(1), 754-774.
  57. Yao, S. (1999). Economic growth, income inequality and poverty in China under economic reforms. Journal of Development Studies, 35(6), 104-130.
  58. Yaskewich, D. M. (2019). Income inequality in local economies: Where is it perceived as an obstacle? The Social Science Journal, 58(1), 46-61.
  59. Yunus, M. & Weber, K. (2007). Creating a world without poverty: Social business and future capitalism. Public Affairs
Cited by
Share on Facebook Share on Twitter Share on Google+ Share on Pinterest Share on LinkedIn Wyślij znajomemu