Description
Title: A cointegration analysis examines the relationship between social investment and poverty and economic growth in South Africa.
Abstract: Despite being middle-class, many South African households are either already in poverty or are on the verge of becoming so. Many households lack even the most basic access to healthcare, clean energy, and clean water, and South Africa has one of the most unequal income and wealth distributions in the entire world. The South African government has taken significant measures to combat poverty and inequality and promote economic growth, despite increasing spending. To understand the ambiguity that currently exists, one must understand the relationship between social investment, poverty, inequality, and economic growth. This paper employs the cointegration technique to examine the effects of social investment on poverty and economic growth in South Africa between 1990 and 2020. According to cointegration estimates, economic growth, poverty, inequality, and social investment are unrelated. The results of the study suggest that in order to ensure their implementation, South Africa’s macroeconomic policies, which appear to be more urban-focused, need to be modified and redirected into inclusive policies with strict constraints. This plan will assist in the transformation of rural and township life.
Keywords: government; growth; poverty; inequality
Paper Quality: SCOPUS / Web of Science Level Research Paper
Subject: Economics
Writer Experience: 20+ Years
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