Poverty Incidence in Nigeria: The Centrality of Sustainable Natural
Resource Management
Abstract
In attempting to achieve the main objective of the study, annual time
series data from 1984 to 2016 are employed. This entails the period of
both high and low commodity prices in the global markets. The scope
seems sufficient to have holistic coverage of the effect of natural
resource sector on poverty incidence. Accordingly, three natural
resources indicators comprising non-oil rents (% of GDP), oil rents (%
of GDP) and total natural resource rents (% of GDP) are used, while
poverty headcount ratio at $1.90 a day (2011 PPP) (% of population)
represents the poverty measure. This indicator of poverty has been
identified as most appropriate for capturing poverty level in an
economy. The analysis is conducted with the use of Dynamic Least Squares
(DOLS), Fully Modified Least Squares (FMOLS) and Canonical Cointegrating
Regression (CCR), while the causal link is examined using Vector Error
Correction Model (VECM) approach.