Moche, Tebogo J.Monkam, Nara F.Aye, Goodness Chioma2015-05-192015-05-192014Moche, TJ, Monkam, N & Aye, GC 2014, 'Fiscal decentralization and poverty in South Africa : evidence from panel data analysis'. Investment Management and Financial Innovations, vol. 11, no. 2, pp. 69-76.1810-4967 (print)1812-9358 (online)1813-4998 (cd-rom)http://hdl.handle.net/2263/45165This paper examines the dynamic relationship between fiscal decentralization and poverty in South Africa within a panel data framework. The data used covers the period from 2005 to 2011 for the eight metropolitan municipalities making a total of 56 observations. We use real household consumption expenditure per capita as a proxy for poverty and the ratio of metropolitan expenditure to national government expenditure as fiscal decentralization. The results from a panel VAR estimated with GMM, show a negative short run effect of fiscal decentralization on real household consumption per capita in South Africa. These results have important policy implications.en© Tebogo J. Moche, Nara Monkam, Goodness C. Aye, 2014.Fiscal decentralizationMunicipalitiesPovertyConsumption expenditurePanel dataArticle