https://ir.unisa.ac.za/handle/10500/2887 2026-06-20T02:51:20Z https://ir.unisa.ac.za/handle/10500/32643 Bridging the divide : the impact of financial inclusion on income inequality in Africa Mdingi, Kholeka The study empirically investigates the impact of financial inclusion on income inequality across 25 African countries from 2006 to 2022. Promoting financial inclusion has become a core strategy for economic development in emerging economies, focusing on advancing access for low-income households and small businesses. The existing literature suggests that such efforts yield various benefits for economic and financial development, which, in turn, may reduce income inequality. This potential link raises an important question: Does the movement toward greater financial inclusion effectively reduce income inequality? Empirical research examining the link between financial inclusion and income inequality is important, particularly in Africa, a developing region with high income inequality. Therefore, this study investigates the effect of financial inclusion – measured by access, penetration and usage dimensions and an overall index – on income inequality using the two-step system Generalised Method of Moments (GMM), and the Quantile Regression testing techniques. The findings indicate that access to financial services and products, their penetration, and the financial inclusion index reduce income inequality, particularly in countries at medium to high quantiles of the income inequality distribution, while it increases it at lower quantiles. Policy makers should implement policies that expand access to and penetration of formal financial services and products, and complement financial inclusion efforts with measures to reduce wealth gaps. In contrast, the findings show that the use of financial services and products increases income inequality, particularly in countries at medium to high quantiles of the income inequality distribution, while reducing it at lower quantiles. This suggests that financial use, in terms of credit and savings, tends to widen rather than reduce income inequality, benefitting those already financially included, while disadvantaged groups remain excluded. Policymakers should implement policies that promote income-generating activities and improve the earning capacity of disadvantaged populations before promoting this form of financial use. They should also promote more accessible alternative forms of financial use, such as digital payment systems and internet banking, to reduce barriers for small businesses and low-income groups. Furthermore, policymakers should pursue financial education initiatives to enable poor people to use these digital financial services and products effectively.; Kwenziwe uphando ngokwamava xa kuphandwa impembelelo yokufikelela okuqukayo emalini kumba wokungalingani kwemivuzo kumazwe angama-25 elizwekazi iAfrika ukususela kunyaka wama-2006 ukuya kuthi ga kowama-2022. Ukuqhubela phambili ukufikelela okuqukayo emalini sisicwangciso esingundoqo sophuhliso loqoqosho lwamazwe anoqoqosho olusakhasayo kwaye sijolise ekubeni siphucule ukufikelela kwamakhaya anemivuzo emincinane kunye namashishini amancinane. Uncwadi olukhoyo lubalula ukuba iinzame ezilolu hlobo zinceda ngeendlela ezahlukeneyo kuphuhliso loqoqosho nolwemali, kwaye oku kunokuwucutha umsantsa wokungalingani kwemivuzo. Olu nxulumano olunokwenzeka luvusa umbuzo obalulekileyo: Ingaba ukufikelela okuqukayo emalini kuyawucutha ngokwenene na umsantsa wokungalingani kwemivuzo? Lubalulekile uphando ngokwamava oluhlola unxulumano phakathi kokufikelela okuqukayo emalini kunye nomsantsa wokungalingani kwemivuzo, ingakumbi kwilizwekazi iAfrika eliyingingqi esakhasayo enowona msantsa mkhulu wokungalingani kwemivuzo. Olu phando luphengulula isiphumo sokufikelela okuqukayo emalini – silinganiswa ngemilinganiselo yokufikeleleka, eyokungena neyokusetyenziswa nangesalathisi ngokubanzi – kumsantsa wokungalingani kwemivuzo lusebenzisa inkqubo emanyathelo amabini iGeneralised Method of Moments (GMM), kunye neendlela zokuhlola iQuantile Regression. Iziphumo zobonise ukuba ukufikelela kwiinkonzo nakwiimveliso zemali, ukungena kuzo kunye nesalathisi sokufikelela okuqukayo emalini ngokubanzi kuyawucutha umsantsa wokungalingani kwemivuzo, ingakumbi kumazwe akumanqanaba aphakathi ukusa kwaphezulu okungalingani kwemivuzo, ukanti kuyawunyusa kumazwe akumanqanaba asezantsi. Kufuneka abaqulunqi bemigaqo-nkqubo bamilisele imigaqo-nkqubo eyandisa ukufikeleleka nokungena kwiinkonzo neemveliso zemali ezisesikweni kwaye bawunciphise umsantsa wobutyebi besebenzisa ukufikelela okuqukayo emalini. Iziphumo zichasene noku kuba zona zibonisa ukuba ukusebenzisa iinkonzo neemveliso zemali kuyakwandisa ukungalingani kwemivuzo, ingakumbi kumazwe akumanqanaba aphakathi naphezulu ngokwemivuzo engalinganiyo, ukanti kumazwe akumanqanaba asezantsi okungalingani kwemivuzo oku kuyakunciphisa ukungalingani kwemivuzo. Oku kuxela ukuba ukusebenzisa imali ngamatyala nangokulondoloza imali kuyakwandisa ukungalingani kwemivuzo endaweni yokokuba kukunciphise kwaye kunceda abo asele bequkiwe emalini lo gama beqhubeka nokusala ngaphandle abo bangathathi ntweni. Phambi kokuba abaqulunqi bemigaqo-nkqubo baqhubele phambili olu hlobo lokusetyenziswa kwemali kufuneka bamilisele imigaqo-nkqubo ekhuthaza ukwenziwa kwezinto ezingenisa umvuzo neziphucula ubuchule bokungenisa imali ebantwini abahlelelekileyo. Kufuneka baqhubele phambili iindlela ezizezinye ezifikelelekayo zokusebenzisa imali ezifana neenkqubo zokuhlawula ngedijithali nokubhanka ngeintanethi ukuze kuguzulwe imiqobo ethintela amashishini amancinane kunye nabantu abamkela imivuzo emincinane. Ngaphaya koko, kufuneka abaqulunqi bemigaqo-nkqubo benze amaphulo okufundisa ngemali ngelincedisa abantu abahlelelekileyo ukuze bakwazi ukusebenzisa ezi nkonzo neemveliso zemali zedijithali ngokukuko.; Die studie ondersoek empiries die impak van finansiële insluiting op inkomste-ongelykheid in 25 Afrikalande van 2006 tot 2022. Die bevordering van finansiële insluiting het ʼn kernstrategie vir ekonomiese ontwikkeling in ontluikende ekonomieë geword, met die fokus op die bevordering van toegang vir lae-inkomste huishoudings en klein besighede. Die bestaande literatuur dui daarop dat sulke pogings verskeie voordele vir ekonomiese en finansiële ontwikkeling inhou, wat weer inkomste-ongelykheid kan verminder. Hierdie potensiële skakel laat ʼn belangrike vraag ontstaan: Verminder die beweging na groter finansiële insluiting inkomste-ongelykheid effektief? Empiriese navorsing wat die verband tussen finansiële insluiting en inkomste-ongelykheid ondersoek, is belangrik, veral in Afrika, ʼn ontwikkelende streek met hoë inkomste-ongelykheid. Hierdie studie ondersoek dus die uitwerking van finansiële insluiting – gemeet aan toegang-, penetrasie- en gebruiksdimensies en ʼn algehele indeks – op inkomste-ongelykheid met behulp van die tweestap-stelsel algemene metode van momente (AMM) en die kwantielregressie-toetstegnieke. Die bevindinge dui daarop dat toegang tot finansiële dienste en produkte, die penetrasie en die algehele finansiële insluitingsindeks inkomste-ongelykheid verminder, veral in lande met medium tot hoë kwantiele van die inkomste-ongelykheidsverspreiding, terwyl dit met laer kwantiele verhoog. Beleidsmakers behoort beleid te implementeer wat toegang tot en penetrasie van formele finansiële dienste en produkte uitbrei en finansiële insluitingspogings met maatreëls aanvul om welvaartgapings te verminder. In teenstelling hiermee toon die bevindinge dat die gebruik van finansiële dienste en produkte inkomste-ongelykheid verhoog, veral in lande met medium tot hoë kwantiele van die inkomste-ongelykheidsverspreiding, terwyl dit by laer kwantiele verminder. Dit dui daarop dat finansiële gebruik, in terme van krediet en spaargeld, geneig is om inkomste-ongelykheid te verbreed eerder as te verminder, wat diegene wat reeds finansieel ingesluit is, bevoordeel, terwyl benadeelde groepe uitgesluit bly. Beleidsmakers behoort beleid te implementeer wat inkomste-genererende aktiwiteite bevorder en die verdienvermoë van benadeelde bevolkings verbeter voordat hulle hierdie vorm van finansiële gebruik bevorder. Hulle behoort ook meer toeganklike alternatiewe vorme van finansiële gebruik, soos digitale betaalstelsels en internetbankdienste, te bevorder om versperrings vir klein besighede en lae-inkomstegroepe te verminder. Verder behoort beleidsmakers finansiële opvoedingsinisiatiewe na te streef om arm mense in staat te stel om hierdie digitale finansiële dienste en produkte effektief te gebruik Abstracts in English, Xhosa and Afrikaans 2025-10-01T00:00:00Z https://ir.unisa.ac.za/handle/10500/32563 Determining factors affecting tax evasion in the Mercosur region Ansari, Fahad Nuzair Theoretically, fiscal revenue maximisation remains the administrative goal of any country. Undoubtedly, tax evasion has reduced the government’s tax revenues and its ability to offer public goods. Moreover, tax evasion has adverse effects on a country's economic development. It garbles the overall tax system of the country and reduces the government's tax revenues through its expenses on law enforcement. Therefore, tax evasion is an important phenomenon to study, particularly in developing countries. Variables included in tax noncompliance studies are complex tax systems, tax information, penalties, reporting requirements, the probability of audit, tax rates, age, level of education, gender, income levels, and others. After reviewing the literature, it appears that existing studies yield mixed findings, which necessitate further empirical investigations, particularly in developing countries. The present study empirically investigates the sociodemographic, economic, and cultural factors as determinants of tax evasion in developing countries, particularly in the MERCOSUR region. The study employs the Panel Autoregressive Distributed Lags (ARDL) technique for the period 1990-2022. By comparing the findings of the MG, PMG, and DFE estimators, the Hausman test results indicate that the PMG is the most consistent and efficient estimator for this dataset. Consequently, the long-run analysis is based on the PMG estimator, which reveals that the age of the taxpayer, economic development, culture and democracy have statistically significant relationships with tax evasion. While the source of income from agriculture and education has a positive relationship, this relationship is statistically weak in the MERCOSUR region. A limitation of the study is that data is not easily available for developing countries, unlike those in OECD countries. Socio-political determinants of personal income tax evasion should be further explored.; Ngokwemfundiso, ukukhulisa imali engenayo yezimali kusalokhu kuyinjongo yokuphatha yanoma yiliphi izwe. Akungabazeki ukuthi ukugwema intela kuye kwehlisa imali engenayo yentela kahulumeni kanye nekhono lakhe lokunikeza izimpahla zomphakathi. Ngaphezu kwalokho, ukugwema intela kunemiphumela emibi ekuthuthukisweni komnotho kwanoma yiliphi izwe. Kuphazamisa uhlelo lwentela oluphelele lwezwe. Kwehlisa imali engenayo yentela kahulumeni ngezindleko zakhe zomthetho. Ngakho-ke, ukugwema intela kuyinto ebaluleke kakhulu okufanele ifundwe, ikakhulukazi emazweni asathuthuka. Izinto ezifakiwe ezifundweni zokungalandeli imithetho yentela izinhlelo zentela eziyinkimbinkimbi, ulwazi lwentela, izinhlawulo, ukubika, amathuba okucwaningwa kwamabhuku, amazinga entela, ubudala, izinga lemfundo, ubulili, amazinga emali engenayo, njll. Ngemva kokubuyekeza izincwadi, kubonakala sengathi izincwadi ezikhona zinikeza imiphumela exubile, okuholela ophenyweni olwengeziwe olusekelwe ebufakazini, ikakhulukazi emazweni asathuthuka. Lolu cwaningo luhlola ngobuciko izici zezenhlalo kanye nezomnotho, kanye namasiko, njengezinto ezibangela ukugwema intela emazweni asathuthuka, ikakhulukazi esifundeni sase-MERCOSUR. Lolu Cwaningo Lusebenzisa Indlela ye-Panel Autoregressive Distributed Lags (ARDL) yesikhathi sika-1990-2022. Ngokuqhathanisa okutholakele kwabalinganisi be-MG, PMG kanye ne-DFE, imiphumela yokuhlolwa kwe-Hausman ikhombisa ukuthi i-PMG iyisilinganiso esivumelana kakhulu nesisebenza kahle salolu lwazi. Ngenxa yalokho, ukuhlaziywa kwesikhathi eside kusekelwe kusilinganiso se-PMG, esiveza ukuthi iminyaka yomkhokhi wentela, intuthuko yezomnotho, isiko kanye nentando yeningi kunobudlelwano obubalulekile ngokwezibalo nokugwema intela. Ngenkathi umthombo wemali engenayo evela kwezolimo kanye nemfundo unobudlelwano obuhle, lobu budlelwano buwubudlelwano obubuthakathaka ngokwezibalo esifundeni sase-MERCOSUR. Umkhawulo wocwaningo ukuthi idatha ayitholakali kalula emazweni asathuthuka njengalawo asemazweni e-OECD. Izinto ezibangela ukugwema intela yengeniso yomuntu siqu ngokwezenhlalo kufanele zihlolwe kabanzi. Amagama angukhiye; Teoreties bly die verhoging van fiskale inkomste die administratiewe doelwit van enige land. Daar is geen twyfel dat belastingontduiking die regering se belastinginkomste en sy vermoë om openbare goedere te verskaf, verminder het nie. Boonop het belastingontduiking negatiewe uitwerking op die ekonomiese ontwikkeling van enige land. Dit ontwrig die hele belastingstelsel van die land. Dit verminder die regering se belastinginkomste vir sy regskoste. Daarom is belastingontduiking 'n baie belangrike ding om te bestudeer, veral in ontwikkelende lande. Onderwerpe wat in belasting-nie-nakomingskursusse gedek word, is komplekse belastingstelsels, belastinginligting, boetes, verslagdoening, ouditgeleenthede, belastingkoerse, ouderdom, opvoedingsvlak, geslag, inkomstevlakke, ens. Nadat die literatuur nagegaan is, blyk dit dat die bestaande literatuur gemengde resultate verskaf, wat lei tot meer bewysgebaseerde ondersoeke, veral in ontwikkelende lande. Hierdie studie ondersoek sosiale en ekonomiese faktore, sowel as kultuur, krities as faktore agter belastingontduiking in ontwikkelende lande, veral in die MERCOSUR-streek. Hierdie studie gebruik die Panel Autoregressive Distributed Lags (ARDL) metode vir die tydperk 1990-2022. Deur die bevindinge van die MG-, PMG- en DFE-beramers te vergelyk, toon die resultate van die Hausman-toets dat die PMG die mees konsekwente en doeltreffendste beramer van hierdie inligting is. Gevolglik is die langtermyn-ontleding gebaseer op die PMG-skatting, wat aan die lig bring dat die belastingbetaler se ouderdom, ekonomiese ontwikkeling, kultuur en demokrasie 'n statisties betekenisvolle verband met belastingontduiking het. Terwyl die bron van inkomste uit landbou en onderwys 'n positiewe verband het, is hierdie verhouding statisties swak in die MERCOSUR-streek. 'n Beperking van die studie is dat data nie so geredelik beskikbaar is in ontwikkelende lande soos in OESO-lande nie. Die sosiale determinante van persoonlike inkomstebelastingontduiking moet verder ondersoek word. Text in English with abstract and keywords in Zulu and Afrikaans 2026-02-01T00:00:00Z https://ir.unisa.ac.za/handle/10500/32433 Empirical investigation of the effects of trade openness on poverty in South Africa and Lesotho Mtolo, Zimvo The study examined the impact of trade openness on poverty in South Africa and Lesotho separately. The study used the autoregressive distributed lag (ARDL) bounds testing approach with annual data from 1980 to 2019. The study used the consumption-based measure of poverty, measured by consumption expenditure as a target variable of investigation. The study further employed three measures of trade openness, which are sum of trade to GDP, the ratio of exports to GDP, and imports to GDP ratio. The use of three proxies of trade openness allowed the study to check the robustness of the results and to examine the individual effects of exports and imports on poverty. As a contribution to existing literature, the study included a dummy variable for Lesotho to capture the effect of the structural break that occurred from 1990 resulting from retrenchments of Lesotho nationals from South African mines. The overarching aim of the study is to contribute to the ongoing literature on the extent in which trade openness impacts poverty in South Africa and Lesotho, which are members of the Southern African Customs Union (SACU). The pursuit of the present study, among other things, is motivated by SACU’s mandate highlighting the need to foster sustainable economic growth and development among member countries. Such a mandate is underpinned by a focus on generating employment opportunities and alleviating poverty in the SACU area. The study provides a comparison of how the impact of trade openness on poverty differs between South Africa which is an upper-middle income country and Lesotho which is a lower middle-income country. The comparison also considers if the results differ with different proxies of trade openness. The results show that for South Africa, in the long run and short run, trade openness does not lead to poverty reduction, irrespective of the proxy used to measure trade openness. Instead, in the long run, trade openness, proxied by the sum of trade to GDP and the ratio of imports to GDP, has a negative effect on poverty. In the short run, the sum of trade/GDP and exports/GDP are both insignificant to poverty while imports/GDP have a negative impact on poverty. For Lesotho, in the long run, sum of trade/GDP is insignificant to poverty while exports/GDP and imports/GDP have a positive effect on poverty. In the short run, the sum of trade/GDP has a positive impact on poverty, exports/GDP have a negative effect on poverty while imports/GDP are insignificant to poverty. The coefficient of the dummy variable is negative and significant in the short run, confirming the evidence of a structural break. These results suggest that policies adopted in South Africa have not brought significant poverty alleviation. This could be an indication of a situation where policies implemented over the past tend to prevent the poor from benefiting from the gains of trade openness. Based on the findings, the main recommendation for South Africa is that policymakers could review the policies in place and understand the unintended consequences of each policy on poverty reduction. Policymakers in Lesotho could ensure that they adopt policies that benefit the poor directly. If well implemented, such policies could provide relief that will protect the poor from short term adjustment costs arising from trade openness. In view of the overall findings, the current study, therefore, recommends that there be a critical review of policies to assess unintended consequences of trade openness that may lead to increased poverty and ensure alignment of policies to overall poverty reduction objectives. In this context, the study recommends that the mechanism of distributing gains from trade be reviewed to ensure that gains from trade openness, such that the returns from trade, including funds from SACU revenue, are invested towards poverty reduction.; Bofuma ke sehlooho sa bohlokwa haholo se bohareng ba Dipheo tsa Ntlafatso ya Dilemo tse Sekete le Dipheo tsa Ntlafatso ya Moshwelella jwalo ka ha di hlahiswa ke Matjhaba a Kopaneng. Kahoo, phuputso ena e batlisisa phello ya ho buleha ha kgwebo bofumeng dinaheng tse pedi tse kgethilweng tsa Mokgatlo wa Lekgetho wa Dinaha tsa Afrika e Borwa (SACU), e leng, Lesotho le Rephabliki ya Afrika Borwa. Naha ya Lesotho e nkwa e le naha e sa tswelang pele haholo mme e behilwe boemong ba naha e futsanehileng, ha Afrika Borwa e le naha e ntseng e tswela pele moruong eo hape e nkilweng e le naha e hodimo-dimo. Nako ya phuputso e akaretsa 1980 ho isa 2019, e leng nako ya sewa sa pele ho COVID-19. Phuputsong e matla ya phello ya ho buleha ha kgwebo bofumeng, phuputso e sebedisa mokgwa wa tlhahlobo ya meedi ya ho dieha ho tsamaiswa ka mokgwa o ikemetseng (ARDL) ho kopanya. Kaha maemo a bofuma a ntse a tswela pele Afrika Borwa le Lesotho, sepheo se seholo sa phuputso ena ke ho kenya letsoho dipatlisisong tsa hore na ho buleha ha kgwebo ya matjhaba ho ama bofuma hakae dinaheng tse kgethilweng tsa SACU. Takatso ya phuputso ya jwale, hara tse ding, e susumetswa ke thomo ya SACU e totobatsang tlhokeho ya ho kgothalletsa kgolo le ntlafatso ya moruo wa moshwelella hara dinaha tseo e leng ditho. Thomo e jwalo e tshehetswa ke tsepamiso ya maikutlo hodima ho hlahisa menyetla ya mesebetsi le ho fokotsa bofuma sebakeng sa SACU. Kemedi ya bofuma e sebedisitsweng phuputsong ena ke Malapa le Mekgatlo e sa Etsang Phaello e Sebeletsang ditshenyehelo tsa Malapa tsa ho qetela tsa tshebediso ya motho ka mong tse lekantsweng ka 2015 US$ kamehla. Tlhaloso ya kemedi ena ke hore ha ditshenyehelo tsa ho qetela tsa tshebediso ya tjhelete ya malapa di le hodimo, ho fokotsa sekgahla sa bofuma. Diphetoho tse hlalosang tse sebedisitsweng tlhahlobong di kenyelletsa ho buleha ha kgwebo, e emetsweng ke thepa e iswang kantle ho naha le e tswang kahare ho naha e le karolo ya Kakaretso ya Dihlahiswa tsa Lehae (GDP), ho phahama ha ditheko ho emetsweng ke Indekse ya Theko ya Moreki, kgolo ya moruo e emetsweng ke GDP motho ka mong, le thuto e emetsweng ke tshebediso ya tjhelete ya mmuso thutong e le peresente ya GDP. Diphetho tse matla di senola diphumano tse latelang mabapi le hore na ho buleha ha kgwebo ho ama bofuma ka nako e kgutshwane le nako e telele jwang: sa pele, bakeng sa Afrika Borwa, phuputso e fumana hore phapang ya ho buleha ha kgwebo e bonahala ka dipalo ka katisi e mpe. Sena se fana ka maikutlo a hore keketseho ya ho buleha ha kgwebo e amahanngwa le ho theoha ha ditshenyehelo tsa tshebediso ya tjhelete malapeng, ho lebisang ho, keketseho ya bofuma. Ha ho bapiswa, phuputso e fumana hore ho phahama ha ditheko ho na le dipalo palo tse nang le katisi e mpe, ho bolelang hore ho eketseha ha ho phahama ha ditheko ho lebisang ho ho fokotseha ha ditshenyehelo tsa tshebediso ya ditjhelete ya malapa le keketseho e tsamaellang ya bofuma. Phuputso e fumana hore kgolo ya moruo e bonahala ka dipalo-palo ka katisi e ntle, e leng se bontshang hore ha kgolo ya moruo e ntlafala, lekeno la tjhelete la malapa le lona e ya ntlafala, kahoo bofuma bo a fokotseha. Ho phaella moo, thuto e bonahala ka dipalo-palo tse nang le katisi e ntle, e bolelang hore keketseho ya ditshenyehelo tsa mmuso thutong e lebisa ho eketseha ha ditshenyehelo tsa tshebediso ya tjhelete ya malapa le ho fokotseha ho tsamaellanang ha bofuma. Diphetho tsa Afrika Borwa di kenya letsoho diphuputsong tse teng tse fumaneng hore ho buleha ha kgwebo ho kenya letsoho hampe phokotsong ya bofuma. Sena se bolela hore ho buleha kgwebong ho amahanngwa le ho fokotseha ha ditshenyehelo tsa tshebediso ya tjhelete ya malapa, kahoo bofuma bo a eketseha. Bakeng sa Lesotho, diphumano tsa hona jwale di dumellana le diphumano tse fetileng, ho latela moo ho fumanweng hore bolokolohi ba kgwebo ha bo fetole phokotso ya bofuma dinaheng tse sa tswelang pele moruong. Diphetho tsa Lesotho di bontsha hore thuto ke yona feela e fapaneng e nang le kamano e kgolo le bofuma. Sena se bolela hore keketseho ya ditshenyehelo tsa mmuso thutong e baka keketseho ya ditshenyehelo tsa tshebediso ya ditjhelete ya malapa, le ho fokotseha ha bofuma kamora moo. Dikatisi tsa ho buleha ha kgwebo, ho phahama ha ditheko le kgolo ya moruo ha di na thuso ho latela dipalo. Diphetho tsena di fana ka maikutlo a hore maano a amohetsweng Lesotho ha a so ka a tlisa phokotso ya bofuma. Sena e ka ba sesupo sa boemo boo maano a kentsweng tshebetsong nakong e fetileng a atisang ho thibela mafutsana ho rua molemo melemong ya ho buleha ha kgwebo, kgolo ya moruo le thuto e ntlafetseng. Ka hona, baetsi ba maano ba Lesotho ba ka nahana ho hlahloba maano a hajwale le ho supa maano a tla fella ka hore ho be le basebetsi ba atlehang le ba amanang le phokotso ya bofuma. Bakeng sa Afrika Borwa, baetsi ba maano ba ka hlahloba maano a teng le ho utlwisisa diphello tse sa lebellwang tsa leano le leng le le leng la phokotso ya bofuma. Ka lebaka la diphumano tse akaretsang, phuputso ya hajwale e kgothalletsa hore ho be le tshekatsheko e hlokolosi ya melemo e fumanwang ponahatsong ya kgwebo, e le hore dipoelo tse tswang kgwebong, ho kenyeletswa le ditjhelete tse tswang lekenong la SACU, di tle di tsetelwe bakeng sa phokotso ya bofuma. Sena se ka etswa ka sepheo se hlakileng sa ho utlwisisa phello e sebetsang ya maano a jwalo ho ba futsanehileng ka nako e kgutshwane le e telele. Abstracts and keywords in English and Southern Sotho 2024-09-01T00:00:00Z https://ir.unisa.ac.za/handle/10500/32148 The casual relationship between growth and disaggregate public expenditure in Eswatini Dlamini, Nomalungelo Nkhosingphile Public expenditure in the Kingdom of Eswatini appears to be increasing annually; however, it does not seem to be growing at the same rate as economic growth, which is concerning for a middle-income developing economy. Thus, the main objective of the study is to investigate the relation-ship between disaggregated public expenditure (which includes capital government expenditures and recurrent government expenditures) and economic growth. To the best of our knowledge, this study is the first to investigate the relationship between disaggregated government expenditures and economic growth in the Kingdom of Eswatini. The study examines this relationship empiri-cally using the Autoregressive Distributed Lag (ARDL) model on annual data for the period from 1980 to 2023, which tests the long-run and short-run relationships between these variables. Additionally, the study employs controls for variables such as the inflation rate, capital investment, human capital, population growth rate and a dummy variable to capture the COVID-19 pandemic. The Error Correction Model (ECM) is further employed to examine the long-run and the short-run relationships. The results of the study indicate that there is indeed a statistically significant positive relationship between recurrent government expenditures and economic growth in the long-run, while capital government expenditures and economic growth have a negative but statistically sig-nificant relationship in the short-run. After conducting the Granger Causality Tests, the study fur-ther observes that the economy of Eswatini follows Wagner’s law in that economic growth causes recurrent government expenditure and capital expenditures and the reverse is not true. The study therefore recommends that the government of Eswatini spends more on recurrent expenditures than it does on capital expenditures. 2025-08-12T00:00:00Z