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The objective of the research is threefold. First, the study examines the fiscal policy – income inequality nexus in SA. Second, the study addressed the potential asymmetric effects in fiscal policy – income inequality nexus in SA (i.e. we assessed the effects of fiscal policy on income inequality at different quantiles of the income inequality) using secondary data from 1980–2020. Third, the study also identifies the optimal fiscal policy instrument that achieve the greatest distributional objectives.

The study adopts the traditional ordinary least square (OLS) and the innovative Quantile estimation techniques.

The study found that fiscal policy marginally reduces the income inequality at the lower quantiles (t: 0.05). Specifically, the results show that government spending on health and education reduces income inequality at the lower quantiles (t: 0.05; t: 0.25), albeit exerts a statistically weak impact. On the other hand, the results show that at the upper quantiles, fiscal policy has no statistically significant impact on income inequality. However, we do not find either direct or indirect tax to have any impact on income inequality at any conventional level of significance. This suggests that government spending on health and education have the greater potential to reduce income inequality in South Africa. The research and policy implications are discussed.

The study addressed the asymmetric phenomenon in income inequality-fiscal policy nexus in South Africa.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-12-2023-0956

The aim of this study is twofold. First, the study examines the effect of income inequality on conflicts in sub-Saharan Africa (SSA). Second, the study unveils the role of governance in income inequality – conflicts in sub-Saharan Africa (SSA).

The study adopts the ordinary least square estimation technique (OLS) as the baseline model. However, given that so many panel data models exhibit some form of cross-sectional and temporal dependence, the study also adopts the Driscoll–Kraay cross-sectional and spatial-consistent covariance matrix estimator.

The study finds that income inequality fuels conflicts in SSA. Similarly, the results show that an increase in the quality of governance reduces conflicts. Importantly, the result shows that the quality of governance mitigates the negative effects of income inequality on conflicts in SSA. The research and policy implications are discussed.

The study examines the role governance in income inequality – conflicts nexus in SSA.

The peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2024-0055