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Analysis of the Relationship Between Income Inequality and Poverty Prevalence in Selected North Central States of Nigeria: 1991 ¨C 2013

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Listed:
  • Ndako Yahaya Shaba
  • S. A. J. Obansa
  • Sule Magaji
  • Mohammed Yelwa

Abstract

Poverty in Nigeria has been described as pervasive owing to the fact that the nation has witnessed a persistent increase in poverty level over the years despite various poverty alleviation programs. More so, it has been argued that income inequality is a manifestation as well as strong cause of poverty. The study therefore analyses the empirical relationship between income inequality and poverty prevalence among households in selected North Central States in Nigeria. This study employed survey method supported by time series data using regression analysis A representative sample of 600 respondents was planned for the survey in order to have at least 462 households responding. The result shows that dependency ratio, level of calorie intake, poverty per head counts are important factor influencing the level of poverty prevalence. Hence the study observes a substantial correlation between income inequality and poverty prevalence in the studied North Central Nigeria. The study therefore recommends a deliberate policy of reducing income inequality through equitable distribution of income and acceptable revenue sharing formula, need to campaign against large family size, providing subsidy and credit facilities for farmers and artisans true co-operatives, overhauling existing poverty alleviation programme and finally instituting good governance in every sphere of government activity which is a sine-qua-non for poverty reduction.

Suggested Citation

  • Ndako Yahaya Shaba & S. A. J. Obansa & Sule Magaji & Mohammed Yelwa, 2018. "Analysis of the Relationship Between Income Inequality and Poverty Prevalence in Selected North Central States of Nigeria: 1991 ¨C 2013," Applied Economics and Finance, Redfame publishing, vol. 5(3), pages 22-33, May.
    • Handle: RePEc:rfa:aefjnl:v:5:y:2018:i:3:p:22-33
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    References listed on IDEAS

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    1. Huppi, Monika & Ravallion, Martin, 1991. "The sectoral structure of poverty during an adjustment period: Evidence for Indonesia in the mid-1980s," World Development, Elsevier, vol. 19(12), pages 1653-1678, December.
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    More about this item

    Keywords

    poverty prevalence; income inequality; relative difference in income;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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