Determinants of fiscal effort in sub-Saharan African countries: Does conflict matter?

• Authors: Princewill U. Okwoche , Chimere O. Iheonu

Abstracts

EN

This study investigates the determinants of fiscal effort in sub-Saharan African (SSA) within the framework of fiscal reaction functions. Whereas previous studies focusing on SSA have mainly considered the economic non-debt determinants this study accounts for the role of conflict given its persistence in many SSA countries. It employs a variety of panel econometric methods that are applicable in tackling the problem of endogeneity. Specifically the study employs the instrumental variables fixed effects, the two-step generalised method of moments (GMM) and the traditional two-stage least squares techniques. Mainly the evidence shows that although SSA governments have made fiscal adjustments in response to the escalating levels of debt, conflict impacts negatively on this response in SSA. Furthermore, the results affirm the presence of fiscal fatigue in SSA’s fiscal reaction function. Recommendations based on these findings are discussed.

Keywords

EN

sfical reaction functions; conflict; sub-Saharan Africa

• Publisher: Uniwersytet Ekonomiczny w Poznaniu
• Journal: Economics and Business Review
• Year: 2021
• Volume: 7
• Issue: 2
• Pages: 50-73

Contributors

author

Princewill U. Okwoche

• University of Cape Town, South Africa, School of Economics Building, Middle Campus, Rondebosch

author

Chimere O. Iheonu

• Centre for the Study of the Economies of Africa, Abuja, Nigeria

Identifiers

DOI

10.18559/ebr.2021.2.5

Biblioteka Nauki

1837855