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Financement Des Deficits Publics Et Comportement Du Secteur Financier En Zone Cemac
[Financing Fiscal deficit and private sector behavior in CEMAC countries]

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  • BESSO, CHRISTOPHE RAOUL

Abstract

This paper has as objective to evaluate the impact of public deficits on domestic credit to the private sector in the CEMAC zone. The study is carried out over the period from 1985 to 2016, thanks to an autoregressive econometric model in panel data and distributed delays. The model estimates that, in the short term, domestic credit to the private sector is positively influenced by its past values, while for the other variables, the effects remain mixed. In the long term, the fiscal deficit positively influences the evolution of domestic credit to the private sector in the CEMAC zone because of the weak development of the financial markets.

Suggested Citation

  • Besso, Christophe Raoul, 2018. "Financement Des Deficits Publics Et Comportement Du Secteur Financier En Zone Cemac [Financing Fiscal deficit and private sector behavior in CEMAC countries]," MPRA Paper 95365, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:95365
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    References listed on IDEAS

    as
    1. Nasir Iqbal & Musleh ud Din & Ejaz Ghani, 2017. "The Fiscal Deficit and Economic Growth in Pakistan: New Evidence," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 22(Special E), pages 53-72, September.
    2. William G. Gale & Peter R. Orszag, 2004. "Budget Deficits, National Saving, and Interest Rates," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 35(2), pages 101-210.
    3. Alberto Alesina & Roberto Perotti, 1995. "Fiscal Expansions and Fiscal Adjustments in OECD Countries," NBER Working Papers 5214, National Bureau of Economic Research, Inc.
    4. Ms. Selma Mahfouz & Mr. Richard Hemming & Mr. Michael Kell, 2002. "The Effectiveness of Fiscal Policy in Stimulating Economic Activity: A Review of the Literature," IMF Working Papers 2002/208, International Monetary Fund.
    5. Saleh, Ali Salman, 2003. "The Budget Deficit and Economic Performance: A Survey," Economics Working Papers wp03-12, School of Economics, University of Wollongong, NSW, Australia.
    6. Ari Aisen & David Hauner, 2013. "Budget deficits and interest rates: a fresh perspective," Applied Economics, Taylor & Francis Journals, vol. 45(17), pages 2501-2510, June.
    7. Rumbidzai Aime Biza & Forget Mingiri Kapingura & Asrat Tsegaye, 2015. "Do budget deficits crowd out private investment? An analysis of the South African economy," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 8(1), pages 52-76.
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    More about this item

    Keywords

    public deficit; credit to the private sector; ARDL panel;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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