Consumption functions and expenditure patterns in Africa: empirical evidence for Botswana, Ethiopia, Swaziland, Tanzania, Uganda and Zimbabwe

Abstract

This paper formulates consumption functions and examines expenditure patterns in selected East and Southern African countries, specifically Botswana, Ethiopia, Swaziland, Tanzania, Uganda, and Zimbabwe. It highlights the significant role of consumption in socio-economic development, emphasizing that consumption is a primary driver of economic activity. The study provides empirical evidence on aggregate propensities to consume, income elasticities, and household size elasticities of demand for food and clothing. Findings indicate that poorer countries exhibit higher marginal propensities to consume, suggesting potential for investment multipliers. The paper argues for policies aimed at increasing production and improving the quality of consumer goods to meet rising demand, particularly in food and textiles. It also stresses the importance of integrating socio-economic development strategies with population growth management to enhance living standards.