Impact of Misery Index on Economic Growth in Nigeria (2018)

ABSTRACT

The study investigated the impact of the misery index on economic growth of Nigeria for the time period 1980-2017. Apart from Yadollah and Rouhollah which studied the impact of economic growth and good governance on the misery index in Iran, other studies have concentrated on the relationship of the index with crime, lottery games, inequality and human capital outflows. This research work therefore departs from the views of other researcher and studied the impact of the misery index on economic growth of Nigeria. The broad objective of this study is to examine the impact of the misery index on economic growth of Nigeria and in executing this crucial study secondary data were collected on the misery index (MI), Gross Fixed Capital Formation (GFCF), Total Labour force (TLF) and real gross domestic product (RGDP). It employed the Ordinary Least Square (OLS) method of analysis. The Error Correction Mechanism (ECM) was employed after the Augmented Dickey Fuller (ADF) and Phillip Perron (PP) unit root test as well as the Johansen cointegration test which was applied to the three variables modelled as the determinant of economic growth of Nigeria. The result of this study revealed that the misery index has a negative impact on economic growth of Nigeria. Accordingly the study recommends practical policy option like development of human capital in areas such as health, education, agriculture, finances, transportation, commerce and governance that are needed to eradicate poverty which if implemented will reduce the misery index in Nigeria for the healthy growth and improved standard of living of the country. 1