THE CREDIT CONSUMPTION PATTERN IN SOUTH AFRICA: A TREND ANALYSIS

Risk Governance & Control: Financial Markets & Institutions

Mutezo Ashley¹ 

关键词: Credit Consumption;    Household Debt;    Disposable Income;    Economic Growth;    South Africa;   

DOI  :  10.22495/rgcv5i3c2art5

学科分类：社会科学、人文和艺术（综合）

来源: Virtus Interpress

【 摘 要 】

While the developed countries witnessed a significant contraction in credit consumption in response to the financial crisis in 2008, South Africa’s household debt continues to be on the increase. This article is based on empirical research on the relationship between household debt and disposable income, net wealth, interest rates and inflation for the period between 1975 and 2013. Using regression analyses, the study examines the linkage between household debt and consumption spending in South Africa to capture the short-run and long-run dynamics. The results show that there is a significant relationship between household debt and disposable income, net wealth and inflation. Further tests indicate that there is a bidirectional causality running from economic growth to household debt and vice versa. However, it is revealed that there is no direct relationship between household debt and lending rates.

【 授权许可】

CC BY-NC