Author (s) & Year

Country & Period



Key Findings

Chioma (2009)

Nigeria. 1994-2007

Ordinary Least Squares

GDP, Personal Consumption

・ Changes in Nigeria’s GDP had an insignificant effect on the level of personal consumption expenditure.

Guo and N’Diaye (2010)

China. 1980-2008

Generalized Method of Moments

Private consumption as a share of GDP, Household income as a share of GDP, Public income as a share of GDP, Per capita GDP, Real GDP growth, Real interest rates, Inflation, Change in terms of trade, Old age dependency ratio, Change in real effective exchange rate, Share of employment in services sector, Measure of past foreign financing, Measure of financial development

・ positive and significant relationship between private consumption and GDP per capita, public consumption (as a share of GDP), real GDP growth, change in terms of trade and external financing.

・ Relationship between private consumption and real interest rate, old-age dependency ratio, financial development, share of employment in the service sector, change in real effective exchange rate and household income (as a share of GDP) was negative and statistically significant.

Ofwona (2013)

Kenya. 1992-2011

Ordinary Least Squares

Income, Household Consumption

・ Keynesian consumption theory holds for Kenya with a statistically significant and positive MPC.

Apergis et al. (2014)

South Africa. 1995-2011

Panel cointegration techniques

Provincial Consumption, Housing and Stock Prices

・ Positive and significant relationship between provincial consumption and housing prices and between provincial consumption and stock prices.

・ MPC respective to stock wealth was larger and much more significant than that of housing wealth.

Diacon and Maha (2015)

79 countries, divided into low income, middle income and high income. 1980-2010.

Panel cointegration techniques

Private consumption per capita, net national income per capita, GDP per capita

・ Positive relationship between consumption and income.

Nikbin and Panahi (2016)

Iran. 1978-2012


Total private consumption, GDP, Inflation

・ Positive and statistically significant relationship between the level of private consumption and GDP.

・ Negative and significant relationship between the level of inflation and consumption.

Sekantsi (2016)

Lesotho. 1982-2013


Inflation, real private domestic consumption, real gross domestic product, real gross national income, real household disposable income, real prime lending rate, narrow money, broad money

・ Higher income associated with higher private consumption.

・ Higher inflation reduces private consumption.

・ Higher interest rates reduce private consumption.