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Institutions and pro-cyclicality of fiscal policy in Sub Saharan Africa

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  • Itchoko motande Mondjeli mwa ndjokou

    (Departement of Economics, University of Yaoundé II)

Abstract

This paper identifies how institutional variables influence the pro-cyclicality of fiscal policy in Sub Saharan Africa. Prior to that main objective, we evaluate the cyclical nature of fiscal policy and which institutional variable influences the cyclical nature of fiscal policy in Sub Saharan Africa. We rely on the method of generalized moments in system for a sample of 42 countries over the period 1990-2014. From our empirical analysis, we derive the following results. (i) Fiscal policy in Sub Saharan Africa countries is pro-cyclical. (ii) Freedom from corruption accentuates the pro-cyclicality of fiscal policy in Sub Saharan Africa countries. (iii) Democracy reduces the pro-cyclicality of fiscal policy in Sub Saharan Africa.

Suggested Citation

  • Itchoko motande Mondjeli mwa ndjokou, 2017. "Institutions and pro-cyclicality of fiscal policy in Sub Saharan Africa," Economics Bulletin, AccessEcon, vol. 37(2), pages 1365-1380.
    • Handle: RePEc:ebl:ecbull:eb-17-00229
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    Cited by:

    1. Itchoko Motande Mondjeli Mwa Ndjokou and Christophe Martial Mbassi, 2018. "Does Financial Development Explain the Cyclicality of Monetary Policy in Sub-saharan Africa?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(4), pages 71-84, December.
    2. Essiane, Patrick-Nelson Daniel, 2020. "De l'Ancienne Economie Institutionnelle à la Nouvelle Economie Institutionnelle: une introduction à quelques débats [Old Institutional Economics and New Institutional Economics: an Introduction to ," MPRA Paper 102858, University Library of Munich, Germany.

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    More about this item

    Keywords

    Fiscal policy; Economic institutions; Political institutions; GMM;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook

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