Oziengbe Scott Aigheyisi
Institute of Health Technology Benin City

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Macroeconomic Determinants of Consumption Inequality in Nigeria: Does Agricultural Productivity Matter? Oziengbe Scott Aigheyisi; Presley Kehinde Osemwengie
SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS SIJDEB, Vol. 4 No. 4, December 2020
Publisher : Faculty of Economics, Universitas Sriwijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.29259/sijdeb.v4i4.253-264

Abstract

The paper examines the effect of agricultural productivity and other macroeconomic variables on consumption inequality in Nigeria. The ARDL approach to cointegration and error correction modeling was employed for the analysis. The study found that agricultural productivity and domestic investment reduce consumption inequality in the long run. FDI was also found to be associated with reduction in consumption inequality in the short run, but its long run effect was not statistically significant. Based on the evidence, the study recommends as measure to reduce consumption inequality in the country, increased investment in the agriculture sector to enhance its productivity, and improvement in the investment environment through infrastructural development, including energy, road, telecommunication infrastructure, favourable, tax policies, enhanced national security, etc. to encourage domestic investment and enhance the attractiveness of the economy to FDI.