Analysis of Poverty in Ekiti State
ABSTRACT
This study examined the socioeconomic characteristics of household in Ekiti State Nigeria, it identified and measured the relative importance of factors affecting poverty in both the rural and urban area of the state. The study also looked at the poverty profile in the area. Data collected from 432 heads of households through a random sampling technique from Ekiti Central, Ekiti North and Ekiti South were analysed using Foster, Greer and Thorbecke (FGT) indices, Gini coefficient index (GI), and ordinary least square (OLS). Result shows that for the urban part of Ekiti State, the poverty headcount ([P.sub.o]) indicates that 48%, 71% and 62% share of the population are poor in Ekiti Central, Ekiti North and Ekiti South while for the rural area it was 61%, 55% and 67% in that order respectively. The Gini coefficient shows that there is high welfare inequality in both Ekiti Central and Ekiti North as the Gini coefficient was 0.57 and 0.63 respectively. However welfare inequality was low in Ekiti South as the Gini coefficient was 0.31. Result of the ordinary least square identified some of the factors affecting poverty in Ekiti State Nigeria. The value of [R.sup.2] for rural area are 0.75, 0.61 and 0.53 for Ekiti Central, Ekiti North and Ekiti South respectively, while for urban it is 0.68, 0.57 and 0.51 in that order. The value of the regression sum of square shows that the model accounts for most of variation in the welfare status in the Ekiti for the period. Other dagonistic tests show that some of the estimates are statistically significant. Out of poverty determinant factors fitted in the model education and household size stand as the most important determinant of poverty in Ekiti State Nigeria.
Keywords: Poverty Analysis, Household, Poverty Line, Welfare Inequality Poverty Determinant
1. INTRODUCTION
Poverty is a complex human phenomenon associated with unacceptably low standard of living. It has multiple dimensions, manifestations and causes
This study examined the socioeconomic characteristics of household in Ekiti State Nigeria, it identified and measured the relative importance of factors affecting poverty in both the rural and urban area of the state. The study also looked at the poverty profile in the area. Data collected from 432 heads of households through a random sampling technique from Ekiti Central, Ekiti North and Ekiti South were analysed using Foster, Greer and Thorbecke (FGT) indices, Gini coefficient index (GI), and ordinary least square (OLS). Result shows that for the urban part of Ekiti State, the poverty headcount ([P.sub.o]) indicates that 48%, 71% and 62% share of the population are poor in Ekiti Central, Ekiti North and Ekiti South while for the rural area it was 61%, 55% and 67% in that order respectively. The Gini coefficient shows that there is high welfare inequality in both Ekiti Central and Ekiti North as the Gini coefficient was 0.57 and 0.63 respectively. However welfare inequality was low in Ekiti South as the Gini coefficient was 0.31. Result of the ordinary least square identified some of the factors affecting poverty in Ekiti State Nigeria. The value of [R.sup.2] for rural area are 0.75, 0.61 and 0.53 for Ekiti Central, Ekiti North and Ekiti South respectively, while for urban it is 0.68, 0.57 and 0.51 in that order. The value of the regression sum of square shows that the model accounts for most of variation in the welfare status in the Ekiti for the period. Other dagonistic tests show that some of the estimates are statistically significant. Out of poverty determinant factors fitted in the model education and household size stand as the most important determinant of poverty in Ekiti State Nigeria.
Keywords: Poverty Analysis, Household, Poverty Line, Welfare Inequality Poverty Determinant
1. INTRODUCTION
Poverty is a complex human phenomenon associated with unacceptably low standard of living. It has multiple dimensions, manifestations and causes
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