Fiscal Policy And Poverty In The Southern African Customs Union: The Case Of Frontier Technology Readiness Index and Skills

Opeyemi Aromolaran (1) , Nicholas Ngepah (2)
(1) College of Business and Economics, University of Johannesburg, South Africa , South Africa
(2) School of Economics, College of Business and Economics, University of Johannesburg, South Africa , South Africa


The study examines the relationship between fiscal policy, the level of poverty, and the frontier technology readiness index (skill) in the Southern African Customs Union over the period of 2012 to 2022. The technique of pooled ordinary least squares was used to ascertain the empirical findings, while the LLC and IPS established the stationarity of the variables. The empirical findings show that government expenditure on education, indirect taxes, and the skills index directly affect household consumption expenditure significantly and, by implication, reduce poverty. However, the interaction of government expenditure on education and skills significantly reduces household final consumption expenditure. The essence of the study is that the respective government in the Southern African Customs Union should harness efforts towards integrating relevant skills into the educational system in light of the 21st-century technology revolution. It is admitted that previous studies have largely concentrated on issues such as income inequality, financial inclusion, government expenditure program in addressing the problem of poverty in developing economies, this study, while observing the crucial role of fiscal policy, evaluates the effect of a frontier technology readiness index, skills, in abating the severity of poverty in the region.

Full Article

Generated from XML file


Andersson Järnberg, L., & Värja, E. (2023). The composition of local government expenditure and income growth: the case of Sweden. Regional Studies, 57(9), 1784-1797.

Andiny, P., & Mandasari, P. (2017). Analisis pertumbuhan ekonomi dan kemiskinan terhadap ketimpangan di Provinsi Aceh. Jurnal Penelitian Ekonomi Akuntansi (JENSI), 1(2), 196-210.

Christiaensen, L., & Hill, R. (2019). Poverty in Africa. In K. Beegle & L. Christiaensen (Eds.), Accelerating poverty reduction in Africa. Washington, DC: World Bank, 33-50.

Idris, M., & Sebastine, E. N. (2023). Effect of indirect taxation on household consumption in Nigeria. Asian Journal of Economics and Finance, 5(1), 21-37.

Kadenge, J. A. (2021). Effect of taxation on economic performance: A case of Kenya. Retrieved from

Kamfose, E. C., & Agila, D. G. (2023). The Impact of Microfinance on Economic Growth and Poverty Reduction in Malawi. International Journal for Research in Applied Science and Engineering Technology, 11(4), 933-937.

Msolomba, T. A. I. (2023). Beyond a dollar: the poverty graduation challenge for southern Africa.

Muindi, N. N., & Mukorera, S. Z. E. (2022). Implications of fiscal policy on household consumption in Kenya: A nonlinear auto-regressive distributed lag approach. Journal of Economic and Financial Sciences, 15(1), 1-10.

Ningaye, P., & Ndjanyou, L. (2007). Multidimensional poverty in Cameroon: its determinants and spatial distribution. Working paper, The African Economic Research Union, Cameroon.

Nwadiani, M. (2018). Education and labour force participation in Nigeria: An empirical analysis. Journal of Economics and Sustainable Development, 9(9), 27-33.

Omodero, C. O., Jones, E., Ololade, B. M., & Ekundayo, O. (2023). Influence of consumption tax on spending capacity of households in Sub-Saharan Africa: Evidence from Nigeria and Kenya. Journal of Infrastructure, Policy and Development, 7(3).

Rosenstein-Rodan, P. N. (1961). Notes on the theory of the 'big push'. In Economic Development for Latin America: proceedings of a conference held by the International Economic Association (pp. 57-81). London: Palgrave Macmillan UK.

Saci, F. (2023). Performance comparison of poverty alleviation through education, employment and industry during the period of targeted poverty alleviation. Journal of Economic Analysis, 2(3), 1-20.

Shafuda, C. P. P., & De, U. K. (2020). Government Expenditure on Human Capital and Growth in Namibia: A Time Series Analysis. Economic Structures, 9(21).

Strønen, F. H., Rønning, V. H., & Breunig, K. J. (2019). Innovation Capabilities in Banking: The Case of Norwegian Mobile Payment. Proceedings of the 20th European Conference on Knowledge Management, 998-1005.

Union, S. A. C. (n.d.). Large, volatile external transfers and persistent weaknesses in public financial management (PFM) have fostered high and rigid public expenditure (50 percent of GDP), distorting resource allocation and driving boom-bust cycles marked by arrears and periodic.

Voto, T. P., & Ngepah, N. (2023). The Effect of Direct and indirect Taxes of Poverty in Developing Countries and their Regions: Panel Data Analysis. African Journal of Business & Economic Research, 18(3).

Wadhwa, D. (2018, September 19). The Number of Extremely Poor People Continues to Rise in Sub-Saharan Africa. Data Blog, World Bank. Retrieved from

World Bank. (2016). Russian Federation-Financial Sector Assessment Program: Technical Note-Financial Inclusion. Washington, D.C: World Bank Group.

World Bank. (2018). Poverty and Shared Prosperity 2018: Piecing Together the Poverty Puzzle. Washington: World Bank.

World Bank. (2018a). Overcoming poverty and inequality in South Africa: An Assessment of Drivers, Constraints and Opportunities. Washington: The World Bank


Opeyemi Aromolaran (Primary Contact)
Nicholas Ngepah
Aromolaran, O., & Ngepah, N. (2024). Fiscal Policy And Poverty In The Southern African Customs Union: The Case Of Frontier Technology Readiness Index and Skills. Innovation Journal of Social Sciences and Economic Review, 6(1), 11–21.

Article Details

Smart Citations via scite_