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Can Statistical Capacity Building Help Reduce Procyclical Fiscal Policy?

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  • Sampawende J.‐A. Tapsoba
  • Codjo Neree Noumon
  • Robert C. York

Abstract

Few papers have attempted to assess the role of ‘capacity’, especially in the area of macroeconomic statistics. Consequently, we make an attempt to advance this literature through the construction of a ‘statistical capacity building index’ and then test its explanatory power on the cyclicality of government spending. Using panel data from 62 developing countries, we find evidence that improvements in this index are associated with less procyclicality of government spending over the period 1990–2012, with the significance of this relationship dependent upon the quality of administrative and technical capacity of budgetary institutions. Copyright © 2017 John Wiley & Sons, Ltd.

Suggested Citation

  • Sampawende J.‐A. Tapsoba & Codjo Neree Noumon & Robert C. York, 2017. "Can Statistical Capacity Building Help Reduce Procyclical Fiscal Policy?," Journal of International Development, John Wiley & Sons, Ltd., vol. 29(4), pages 407-430, May.
    • Handle: RePEc:wly:jintdv:v:29:y:2017:i:4:p:407-430
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    Cited by:

    1. Grant J. Cameron & Hai‐Anh H. Dang & Mustafa Dinc & James Foster & Michael M. Lokshin, 2021. "Measuring the Statistical Capacity of Nations," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 83(4), pages 870-896, August.
    2. Dang, Hai-Anh H & Pullinger, John & Serajuddin, Umar & Stacy, Brian, 2024. "Reviewing Assessment Tools for Measuring Country Statistical Capacity," IZA Discussion Papers 16745, Institute of Labor Economics (IZA).
    3. Kady Keita & Camelia Turcu, 2023. "Promoting Counter-Cyclical Fiscal Policy: Fiscal Rules Versus Institutions," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 65(4), pages 736-781, December.
    4. Dang, Hai-Anh H & Jolliffe, Dean & Serajuddin, Umar & Stacy, Brian, 2024. "Country Statistical Capacity: A Recent Assessment Tool and Further Reflections on the Way Forward," IZA Discussion Papers 16892, Institute of Labor Economics (IZA).
    5. Dang,Hai-Anh H. & Pullinger,John James & Serajuddin,Umar & Stacy,Brian William, 2021. "Statistical Performance Indicators and Index : A New Tool to Measure Country Statistical Capacity," Policy Research Working Paper Series 9570, The World Bank.
    6. Alabi, M. K. & Amirthalingam, K., 2020. "Fiscal Policy and the Business Cycle in the West African Monetary Zone," Working Papers 8, Department of Economics, University of Ilorin.

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