Economic Growth and Conflicts: Evidence from Nigeria

Abstract: The paper empirically examines the impact of economic growth on conflicts in Nigeria, using annual data for the period 1981 to 2011 and employing the Dynamic OLS methodology. The results indicate that there is a long-run equilibrium relationship between conflict, inflation, poverty, economic growth and unemployment. There is evidence in support of a direct relationship between conflicts and Nigeria's economic growth, in that the incidents of violent conflicts are partly due to the drive for control of national wealth. It was found that macroeconomic instability, poverty and unemployment are significant variables influencing the nature and dynamics of conflicts in the country, suggesting that the nature of growth experienced is not one that is conflicting-reducing. The CUSUM and CUSUMSQ plots indicate parameter constancy in the estimated model. It is recommended that, while economic growth is accorded priority, policies which promote equity, foster mass employment, minimize distortions and reduce poverty need to be enacted and vigourously implemented.