Consumption pattern and rate of poverty in Developing Countries: Evidence from Nigeria

This paper examines the consumption pattern, trends and rate of poverty in developing economies with particular reference to Nigeria. Low level of income has impacted on the rate of consumption vis-à-vis economic growth and improved standard of living. The ordinary least square (OLS) technique was adopted with the use of time series data on consumption rate, unemployment, inflation, economic growth, dependency ratio, adult literacy as well as poverty. The study reveals that these macroeconomic fundamentals have relationship and impact on consumption rate. In view of the plagues associated with poverty, dynamic poverty alleviation policies devoid of conflict of goals should be sustained in line with meaningful income equality put in place by government so as to avoid the evils of poverty and poor standard of living. A negation of this, the paper argues, impacts on the consumption pattern of consumers and leads to poor standard of living.