Education and the Challenge of Poverty Alleviation in Nigeria

Main Article Content

R. Oke
S. I. Oladeji
O. P. Olofin

Abstract

Using Vector Autoregressive and Autoregressive Distributed Lag methods to examine the impact of education on poverty level and the interactive effect of education and economic growth on poverty level in Nigeria between 1985 and 2016, our results show that education promotes poverty level, instead of reducing it. We found significant cointegrating relationship among poverty, economic growth, education, employment rate, population growth rate, real physical capital formation, education level and real GDP. In the short-run, employment rate reduces poverty level, population growth rate increases poverty level both in the short and long-run. The results of interactive effect of economic growth and education on poverty growth show that jointly economic growth and education reduce poverty, although the results are not statistically significant. This shows that they have minimal impact on poverty level in Nigeria. Our findings may not be surprising, given the current slow-down in Nigeria educational system and the wide gap between the few rich and the larger poor. The study suggests improvement in Nigeria educational system so as promote employment and curb rising poverty level.

Keywords:
Education, economic growth, poverty, employment, Nigeria.

Article Details

How to Cite
Oke, R., Oladeji, S. I., & Olofin, O. P. (2020). Education and the Challenge of Poverty Alleviation in Nigeria. Asian Research Journal of Arts & Social Sciences, 11(1), 12-23. https://doi.org/10.9734/arjass/2020/v11i130159
Section
Original Research Article

References

Human Development Report; 2016.
Available:https://docs.wfp.org/api/documents/WFP-0000074405/download/

Todaro MP. Economic development reading. MA: Addison – Wesley; 1997.

Umo JU. Escaping poverty in Africa: A perspective on strategic agenda for Nigeria. Millennium Text Publishers Limited. 2012;86.

Abbas Q, Peck JF. Human capital and economic growth: Pakistan, 1960-2003. The Lahore Journal of Economics. 2008;13(1):1-27.

African Development Bank (ADB). Economics and Statistics on Africa, Oxford University Press, New York; 2008.

African Development Bank (ADB). Economics and Statistics on Africa, Oxford University Press, New York; 2010.

Oladele I, Lasisi A, Adebayo F. The interface between government policies human capital development and poverty reduction in Nigeria. European Centre for Research Training and Development, United Kingdom; 2013.

The Nigeria Bureau of Statistics (NBS); 2014.

Awopegba PO. Human resources: High level manpower and the development of the Nigerian economy. Nigerian Journal of Economics Research. 2003;1:87-99.

Barro R. Determinants of economic growth: A cross-country empirical study. The MIT Press; 1997.

Njong A. The effects of educational attainment on poverty reduction in Cameroun. Journal of Educational Administration and Policy Issues. 2010;2(1).

Todaro MP, Smith SC. Economic development. 8th Edition India: Pearson Education Limited (Singapore) Indian Branch 48; 2003.

Awan M, Samar N, Waqas M. The impact of human capital in urban poverty. Pakistan Journal of Social Sciences. 2010;7:1–3.

Aigbokhan B, Imahe O, Ailemen MI. Education experiment and human capital development in Nigeria: Any correlation so far? Research Paper, Ambrose Alli University; 2007.

Pervez S. Impact of education on poverty reduction: A co-integration analysis of Pakistan. Journal of Research in Economics and International Finance (JREIF). 2014;3(4):83-89.

Janjua P, Kamal U. The role of education and income in poverty alleviation: A cross-country analysis. The Lahore Journal of Economics. 2001;16(1):143–172.

Raja N. Humanization of education in Pakistan through Freire’s concept of literacy. Asia Pacific Education Review. 2000;1(6).

Danacica D, Belaiscu L, Lilie L. The interactive causality between higher education and economic growth in Romania. International Review Research Paper. 2010;6(4):491–500.

Govinda R. Non-formal education and poverty alleviation analysis of field experiences from Asia. Working Document; 2008.

Oladeji AO. Impact of human capital development on economic growth in Nigeria. International Journal of Recent Research in Commerce Economics and Management (IJRRCEM). 2015;2(2):151–164.

Anyanwu SO, Adam JA, Obi B, Yelwa M. Human capital development and economic growth in Nigeria. Journal of Economics and Sustainable Development. 2015;6(1).

Oxfam International. The power of education to fight inequality; 2019.

Available:file:///C:/Users/user/Downloads/bp-education-inequality-170919-en%20(1).pdf

Vijayakumar S. An empirical study on the nexus of poverty, GDP growth, dependency ratio and earning in developing countries. Journal of Competitiveness. 2013;5(2):67–82.

Osinubi S. Macro econometric analysis of growth, unemployment and poverty in Nigeria. Pakistan Economics and Social Review. 2005;43(2):240-253.

Baker JL. Poverty reduction and human development in the Carribean: A cross-country study. World Bank Discussion Paper, no. 366; 1979.

World Bank. Poverty trends and voices of the poor. Washington D.C.; 1999.

Pesaran MH, Shin Y, Smith R. Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics. 2001;16:289–329.

Pesaran MH. The role of economic theory in modelling the long run. The Economic Journal. 1997;107:178-191.

Pesaran MH, Shin Y. Long-run structural modeling. Unpublished Manuscript, University of Cambridge; 1995.

Alamro H, Al-Dalaien Q. Modeling the relationship between GDP and unemployment for Okun’s law specific to Jordan. Munich Personal Rep Ec Archive; 2014.

Stiglitz J. Towards a new paradigm for development strategies, policies and processes. A Paper Presented to Prebisch Lecture at UBCTAD; 1998.

Edwards P. Crisis and reform in Latin America from despair to hope. New York: The World Bank; 1995.

Ijaiya GT, Ijaiya MA, Bello A, Ajayi M. Economic growth and poverty reduction in Nigeria. International Journal of Business and Sciences. 2007;2:15.

Wesley E, Peterson F. The role of population in economic growth. Journals.sagepub.com/home/sgo. 2017;1–15.
DOI: 10.1177/2158244017736094

World Development Indicators World Development Data Bank; 2015.

Ogujiuba K. Poverty incidence and reduction strategies in Nigeria: Challenges of meeting 2015 MDG targets. Journal of Economics. 2014;5(2):201- 217.

Onibokun AG, Kumuyi AJ. Urban poverty in Nigeria: Towards sustainable strategies for its alleviation. Centre for African Settlement Studies and Development, Ibadan, Nigeria. CASSAD Monograph Series 10. 1996;1-2.

Ogbeide EN, Agu DO. Poverty and inequality in Nigeria: Any causality? Asian Economic and Financial Review. 2015;5(3):439-452.