An Investigation of (Non-) Inclusive Growth in Nigeria’s Sub-Nationals: Evidence from Elasticity Approach

Abstract

This paper aims to estimate and rank the performance of sub-nationals in terms of their quality of growth using an index of inequality elasticity of poverty. The study puts forward a scenario matrix to hypothesize the four qualities of growth according to its interactions with inequality and poverty. This model is useful for developing countries that lack GDP data at the sub-national level, provided growth (at the national level) has been positive for the period under review. The study found that for Nigeria’s sub-nationals, the null hypothesis of non-inclusive growth was rejected for the different poverty measures.

Keywords

• elasticities of poverty
• inequality
• quality of growth
• index
• scenario matrix
• Pareto efficient growth