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Growth, Employment and Poverty in South Africa: In Search of a Trickle-Down Effect

Author

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  • Nicholas M. Odhiambo

    () (University of South Africa (UNISA))

Abstract

In this article we examine the dynamic causal relationship between economic growth, employment, and poverty reduction in South Africa – using the Auto-Regressive Distributed Lag (ARDL) bounds testing procedure. The study attempts to answer one critical question: does economic growth in South Africa trickle down to the poor through job creation? The study uses two proxies to measure the incidence of poverty in South Africa, namely household consumption per capita and infant mortality. The empirical results of the study fail to support the trickle-down effect between economic growth and poverty reduction in South Africa. Moreover, the results show that there is no causal relationship between economic growth and poverty reduction in either direction. The results apply irrespective of whether the poverty level is measured by the real per-capita consumption or by the infant mortality rate.

Suggested Citation

  • Nicholas M. Odhiambo, 2011. "Growth, Employment and Poverty in South Africa: In Search of a Trickle-Down Effect," Journal of Income Distribution, Ad libros publications inc., vol. 20(1), pages 49-62, March.
  • Handle: RePEc:jid:journl:y:2011:v:20:i:1:p:49-62
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    Citations

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    Cited by:

    1. Asongu, Simplice A. & Odhiambo, Nicholas M., 2017. "Mobile banking usage, quality of growth, inequality and poverty in developing countries," Working Papers 23396, University of South Africa, Department of Economics.
    2. repec:afe:journl:v:19:y:2017:i:2:p:77-91 is not listed on IDEAS
    3. Asongu, Simplice & Asongu, Ndemaze, 2017. "Comparative Determinants of Quality of Growth in Developing Countries," MPRA Paper 80650, University Library of Munich, Germany.
    4. Simplice Asongu & Vanessa Tchamyou & Ndemaze Asongu & Nina Tchamyou, 2017. "The Comparative African Economics of Inclusive Development and Military Expenditure in Fighting Terrorism," Journal of African Development, African Finance and Economic Association, vol. 19(2), pages 77-91.
    5. repec:eme:ijsepp:ijse-08-2016-0221 is not listed on IDEAS
    6. Simplice A. Asongu & Jules R. Minkoua N., 2018. "Dynamic openness and finance in Africa," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 27(4), pages 409-430, May.
    7. repec:oap:ijaefa:2017:p:37-47 is not listed on IDEAS
    8. Simplice Asongu & Jacinta C. Nwachukwu, 2017. "Recent finance advances in information technology for inclusive development: a survey," Working Papers 17/009, African Governance and Development Institute..
    9. Nicholas Odhiambo, 2015. "Government Expenditure and Economic Growth in South Africa: an Empirical Investigation," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 43(3), pages 393-406, September.
    10. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2017. "Quality of Growth Empirics: Comparative gaps, benchmarking and policy syndromes," Journal of Policy Modeling, Elsevier, vol. 39(5), pages 861-882.
    11. repec:jda:journl:vol.51:year:2017:issue1:pp:343-359 is not listed on IDEAS
    12. Simplice Asongu & Ndemaze Asongu, 2018. "The comparative exploration of mobile money services in inclusive development," International Journal of Social Economics, Emerald Group Publishing, vol. 45(1), pages 124-139, January.
    13. Sheilla Nyasha Author-Name: Yvonne Gwenhure & Nicholas M. Odhiambo, 2017. "Poverty and Economic Growth in Ethiopia: A Multivariate Causal Linkage," Journal of Developing Areas, Tennessee State University, College of Business, vol. 51(1), pages 343-359, January-M.
    14. Polat, Ali & Shahbaz, Muhammad & Ur Rehman, Ijaz & Satti, Saqlain Latif, 2013. "Revisiting Linkages between Financial Development, Trade Openness and Economic Growth in South Africa: Fresh Evidence from Combined Cointegration Test," MPRA Paper 51724, University Library of Munich, Germany, revised 25 Nov 2013.

    More about this item

    Keywords

    Africa; South Africa; employment; poverty reduction; economic growth;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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