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Selecting finance ministers: Key characteristics shaping government Debt in Africa

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  • Strong, Christine Olivia

Abstract

Analyzing data spanning 1980 to 2020 across 23 African nations, we investigate the influence of finance ministers' personal characteristics on debt-to-GDP ratios. Our study identifies specific traits that significantly impact their performance. Notably, we find that the tenure, gender, and education of African finance ministers all play crucial roles in determining public debt outcomes. Interestingly, longer tenures correlate with weaker abilities to influence government debt, while female finance ministers are associated with lower debt-to-GDP ratios compared to their male counterparts. These findings remain robust even after accounting for key determinants like institutional quality and personal characteristics of heads of state. Importantly, the results persist irrespective of finance ministers' foreign education or potential motivations related to personal gains or the revolving door hypothesis.

Suggested Citation

  • Strong, Christine Olivia, 2024. "Selecting finance ministers: Key characteristics shaping government Debt in Africa," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 736-757.
    • Handle: RePEc:eee:reveco:v:93:y:2024:i:pa:p:736-757
    DOI: 10.1016/j.iref.2024.03.034
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    More about this item

    Keywords

    Finance ministers; Debt; Tenure; Female; Africa;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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