Fiscal Decentralisation and Poverty in South Africa: Evidence from Panel Data Analysis
Tebogo Moche (),
Nara Monkam and
Goodness Aye ()
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Tebogo Moche: Department of Economics, University of Pretoria
Goodness Aye: Department of Economics, University of Pretoria
No 201378, Working Papers from University of Pretoria, Department of Economics
This paper examines the dynamic relationship between fiscal decentralisation and poverty in South Africa within a panel data framework. The data used covers the period 2005 to 2011 for the eight metropolitan municipalities making a total of 56 observations. We use household consumption expenditure per capita as a proxy for poverty and the ratio of metropolitan expenditure to national government expenditure as fiscal decentralisation. The results from a panel VAR estimated with GMM, show a negative short run effect of fiscal decentralisation on household consumption per capita in South Africa. These results have important policy implications.
Keywords: Fiscal decentralisation; municipalities; poverty; consumption expenditure; panel data (search for similar items in EconPapers)
JEL-codes: C33 H31 H72 H77 (search for similar items in EconPapers)
Pages: 16 pages
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Persistent link: https://EconPapers.repec.org/RePEc:pre:wpaper:201378
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