An Empirical Investigation on Institutional Quality, Growth, and Poverty Alleviation in Nigeria

Abstract

The paradox of institutional quality, growth and poverty in Nigeria cannot be overemphasized. Over the years Nigeria has witnessed the implementation of various poverty alleviation programmes reflecting the evolving strategies and approaches to tackle the menace in Nigeria. However, the bane of the problem is associated with governance failure. This study hence interrogated the interrelationship among institutional quality, growth, and poverty, and the effects of institutional quality on poverty and growth in Nigeria. The study used auto-regressive distributive lags to investigate the effects of institutional quality on poverty and growth. Findings from the study revealed that there is a bi-causal relationship between poverty and growth in Nigeria for the period under study. While there was no long run relationship between institutional quality and poverty in Nigeria, there was a significant positive impact on both poverty and growth in the short run. Hence, poverty alleviation programmes and growth induced policies should be implemented within the framework of good governance.