CEU Electronic Theses and Dissertations, 2022
| Author | Onike, Onyekachi |
|---|---|
| Title | Can Fiscal Policy Reduce Economic Inequality in Nigeria |
| Summary | In 2020, Nigeria was named the poverty capital of the world, with 80 million people reported to live in extreme poverty. At the other end of the scale, five of Nigeria’s wealthiest men have a combined net worth of about $30 billion. The level of poverty and inequality is high. There is the need to tackle this rising inequality through fiscal policy. The paper puts forward the hypothesis, asking, Can fiscal policy (education and health) effect inequality and poverty in Nigeria? To answer this question the study analyses data (Gini coefficient, poverty rate, taxation, health, and education spending) from Nigeria, Ghana and Senegal, using two regression models. The result indicates that there is a negative correlation between inequality / poverty and health and education expenditure. However, the correlation is weak. The study also finds that increasing health expenditure is important to reduce inequality. There is the need to address education spending to the rural poor, to maximize its impact on inequality. The paper recommends that the government increases progressive spending, reforms the tax system and balance revenue and expenditure at local government level. |
| Supervisor | Balazs Romhanyi |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2022/onike_onyekachi.pdf |
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