FACTORS INFLUENCING POVERTY IN SOUTH AFRICA: TIME SERIES ANALYSIS

Poverty is an emerging issue that being debated upon in both developed and developing countries, including South Africa. This research investigates the factors affect poverty Africa, as well theoretical connections between country's key macroeconomic variables using annual time series data for 1996-2019. The stationarity test found some were not stationary at level but after first differencing; cointegration demonstrated under investigation have a long-term relationship. VECM findings revealed ratio of agriculture to GDP has negative short-run relationship with rates, while domestic credit private sector, foreign direct investment, growth rate, gross enrollment statistically significant. Domestic all long-run military spending positive insignificant rate. To encourage more sector investment economic development alleviation, African government must create open business climate attractive regulatory incentives.Keywords: Lower bound line, Foreign Direct Investment, Economic Growth, SAJEL Classifications: C22, C50, E60, E62DOI: https://doi.org/10.32479/ijefi.11629