The Determinants of Regional Poverty in Nigeria

ABSTRACT 

This study aimed at investigating regional differentials in Nigeria, and therefore achieved this through two objectives; First to determine the poverty levels of regions and then to ascertain the determinants of regional poverty. This study was motivated by the regional inequalities that exist in Nigeria, wherein one of the major macro-economic objectives is to ensure equitable distribution of National resources. The study employed the 2009 National House hold survey with the use of the FGT index and multinomial logit regression to attain these objectives. The results suggest that poverty is significantly varying across regions in Nigeria with the Northern Region (North-Central, North-East and North-West) being poorer than the Southern region (South-South, South-East, and South-West). This therefore shows that there exists huge inequality of regions as some geo-political zones are poorer than others. Furthermore the multinomial logit results suggest that the significant determinants of poverty in the various regions are; literacy rate, sector (urban/rural), occupational group, and per-capita expenditure on health.

TABLE OF CONTENTS

Title Page - -- - - - - - - - i

Approval Page- - - - - - - - - ii

Dedication - - - - - - - - - iii

Acknowledgement - - -- -- - - - - iv

Abstract - - - - - - - - - v

Table of Contents - - - - - - - - vi

CHAPTER ONE: Introduction - - - - - - - 1

1.1 Background of study - - - - - - - 1

1.2 Statement of the problem - - - - - - 3

1.3 Objective of the study - - - - - - 4

1.4 Research hypothesis - - - - - - - 5

1.5 Scope of the study - - - - - - - 5

1.6 Significance for the Study - - - - - 5

1.7 Limitations of the study - - - - - - - 5

1.8 Organization of the study - - - - - - - 6

1.9 Dimension of Poverty in Nigeria - - - - 6

1.9.1 Poverty Condition in Nigeria - - - - - - 7

1.9.2 Poverty in Urban and Rural Areas of Nigeria- - - - 8

CHAPTER TWO: Literature Review - - - - - - 11

2.1 Theoretical Literature - - - - - - - 11

2.1.1 Causes of Poverty - - - - - - - 12

2.1.2 Regional Level Characteristics - - - - 12

2.1.3 Community Level Characteristics - - - - - -13

2.1.4 Household and Individual Level Characteristics - - - -14

2.1.5 Demographic Characteristics - - - - - - -14

2.1.6 Economic Characteristics - - - - - - -15

2.1.7 Social Characteristics - - - - - - - - 16

2.2 Explanations for Spatial Welfare Disparities: Concentration and Geography17

2.3 Empirical Literature - - - - - - -19

2.4 Limitations of the Previous Study - - - - - -27

CHAPTER THREE: Research Methodology - - - - -29

3.1 Theoretical Framework - - - - - - - -29

3.2 Model Specification for Decomposing Poverty by Regions - - -31

3.3 Model Estimation for the Determinants of Regional Poverty - - -32

3.4 Data and Features - - - - - - - -34

CHAPTER FOUR: Presentation of Results - - - - - -35

4.1 Presentation of the Results for Poverty Decomposition by Regions - -35

4.2 Presentation of the Results of the Determinants of Regional Poverty - -38

CHAPTER FIVE: Summary, Conclusion and Policy Implications - - -47

5.1 Summary - - - - - - - - - -47

5.2 Conclusion - - - - - - - - -48

5.3 Policy Implications - - - - - - - -48

5.4 Suggestions for Further Research - - - - - - -50

References - - - - - - - - - -51

Appendix - - - - - - - - - - 53