Country-Specific Interactions Among Private Investment Economic Growth And Poverty Level In Three Selected Sub-Saharan African Countries. (1985-2010).

Abstract

This study specifically examines the relations among private investment, economic growth and poverty level in Nigeria and its two neighbouring sub-Saharan African (SSA) countries of Benin Republic and Cameroon between the periods 1985 and 2010. The study employed Vector Error Correction Model using data extracted from the World Development Indicators. The study revealed that the relationships among private investment, economic growth, and poverty level did not follow expected pattern in the three countries. The results in Benin Republic show that increase in private investment and reduction in poverty level rather than increase real GDP growth, reduced real GDP growth overtime while the results obtained for Cameroon and Nigeria show that increase in private investment increased poverty level and reduction in poverty level reduced private participation in business in Cameroon and Nigeria. The study suggests a weak relation between private investment and economic growth or poverty level in the three economies.The study therefore recommends measures such as macroeconomic stability and adequate legal system that will ensure proper take off of private investment to boost economic growth and reduce poverty level in these three economies.

Keywords: Private investment, public investment, economic growth, poverty and Vector Error Correction.