A Tale of Cyclicality, Aid Flows and Debt: Government Spending in Sub-Saharan Africa

Lledó, Victor; Yackovlev, Irene; Gadenne, Lucie

doi:10.1093/jae/ejr022

Cited by 30 publications

(20 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…policy has been also documented in African countries: government consumption has been found to be pro-cyclical, the more so when dependence on foreign aid is high (Thornton, 2008). Pro-cyclicality of total public expenditure has been also found by Lledo et al (2011), but with a mitigating impact of foreign aid and debt relief. Whether fiscal rules exacerbate pro-cyclicality of fiscal policy is largely an empirical matter.…”

Section: The Pro-cyclicality Of Fiscal Policymentioning

confidence: 97%

Fiscal Rules and the Pro‐cyclicality of Public Investment in the West African Economic and Monetary Union

Dessus

Diaz-Sanchez

Varoudakis

2014

J of Intl Development

View full text Add to dashboard Cite

Evidence from a large panel of low-income and lower middle-income countries over the period 1995-2012 suggests that, contrary to that in other countries, public investment in the West African Economic and Monetary Union has been pro-cyclical. Public investment contracts more in 'bad times' than it increases in 'good times' and appears to have become pro-cyclical since the introduction of the fiscal convergence criteria in 1994. The pro-cyclicality of public expenditure and the high asymmetry of shocks that affect West African Economic and Monetary Union countries justify exploring options for greater counter-cyclicality of rules-based fiscal frameworks and for risk sharing.

show abstract

Section: The Pro-cyclicality Of Fiscal Policymentioning

confidence: 97%

Fiscal Rules and the Pro‐cyclicality of Public Investment in the West African Economic and Monetary Union

Dessus

Diaz-Sanchez

Varoudakis

2014

J of Intl Development

View full text Add to dashboard Cite

show abstract

“…Estimating Equation requires a measure of the unobserved long‐run values of government spending and output. One approach would be to use a dynamic equation and run the regression in first difference (as in Lane, ; Thornton, ; Lledó, Yackovlev & Gadenne, ), with the lagged values of government spending or using the growth rate of the different variables. This formulation yields Equation , which we adopt as our baseline model:

G_{i, t}^{g} = α + β Y_{i, t}^{g} + γ G_{i, t - 1}^{g} + X_{i, t}^{'} δ + v_{i, t}

G_{i, t}^{g}

and

Y_{i, t}^{g}

denote growth in spending and output, respectively.…”

Section: Empirical Strategymentioning

confidence: 99%

Can Statistical Capacity Building Help Reduce Procyclical Fiscal Policy?

Tapsoba

Noumon

York

2017

J of Intl Development

View full text Add to dashboard Cite

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.

show abstract

“…Recent evidence shows that government spending in more than 90 percent of developing countries is procyclical during the period (Frankel, Vuletin and Végh 2013). Furthermore, the degree of procyclicality of government spending in SSA is greater than that of other developing countries-and it is especially more procyclical among countries in the region that are highly dependent on foreign aid inflows (Thornton 2008, Lledó, Yackovlev andGadenne, 2011).…”

Section: Introductionmentioning

confidence: 99%

Assessing Fiscal Space in Sub-Saharan Africa

Calderón¹,

Chuhan-Pole²,

Some³

2018

View full text Add to dashboard Cite

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

show abstract

A Tale of Cyclicality, Aid Flows and Debt: Government Spending in Sub-Saharan Africa

Cited by 30 publications

References 15 publications

Fiscal Rules and the Pro‐cyclicality of Public Investment in the West African Economic and Monetary Union

Fiscal Rules and the Pro‐cyclicality of Public Investment in the West African Economic and Monetary Union

Can Statistical Capacity Building Help Reduce Procyclical Fiscal Policy?

Assessing Fiscal Space in Sub-Saharan Africa

Contact Info

Product

Resources

About