Oil Revenue, Government Expenditure and Poverty Rate in Nigeria

1
Adelowokan Oluwaseyi A
Adelowokan Oluwaseyi A
2
Adelowokan
Adelowokan
3
Oluwaseyi Adedayo
Oluwaseyi Adedayo
4
OSOBA
OSOBA
5
Adenike. M.
Adenike. M.
1 Olabisi Onabanjo University, Nigeria

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This study examines the impact of revenue from oil proceeds and disaggregated government spending on poverty rate in Nigeria. Different econometrics tests i.e. pre-estimation test, estimation techniques and diagnostic tests such as Augmented Dickey Fuller, Engel-Granger co-integration, Ordinary Least squares and Granger causality were analysed using the data sets within the period of 1970 and 2013. Empirical result disclosed that gross domestic product and revenue from oil proceeds exert negative effect on poverty rate in Nigeria during the reviewed period. This revealed that oil proceeds being the main revenue source in Nigeria have greater impact in ensuring equal distribution of income as a means of reducing poverty level among her citizens. Painstakingly, these proceeds are not channelled into right directions with regards to government spending on capital projects and recurrent expenditure. This further exacerbates the poverty level in Nigeria.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Not applicable for this article.

Adelowokan Oluwaseyi A. 2015. \u201cOil Revenue, Government Expenditure and Poverty Rate in Nigeria\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 15 (GJMBR Volume 15 Issue B10): .

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GJMBR Volume 15 Issue B10
Pg. 11- 20
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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification: JEL Code: P46
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v1.2

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November 30, 2015

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English

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This study examines the impact of revenue from oil proceeds and disaggregated government spending on poverty rate in Nigeria. Different econometrics tests i.e. pre-estimation test, estimation techniques and diagnostic tests such as Augmented Dickey Fuller, Engel-Granger co-integration, Ordinary Least squares and Granger causality were analysed using the data sets within the period of 1970 and 2013. Empirical result disclosed that gross domestic product and revenue from oil proceeds exert negative effect on poverty rate in Nigeria during the reviewed period. This revealed that oil proceeds being the main revenue source in Nigeria have greater impact in ensuring equal distribution of income as a means of reducing poverty level among her citizens. Painstakingly, these proceeds are not channelled into right directions with regards to government spending on capital projects and recurrent expenditure. This further exacerbates the poverty level in Nigeria.

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Oil Revenue, Government Expenditure and Poverty Rate in Nigeria

Adelowokan
Adelowokan
Oluwaseyi Adedayo
Oluwaseyi Adedayo
OSOBA
OSOBA
Adenike. M.
Adenike. M.

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