Macroeconomic determinants of fiscal policy in East Africa: a panel causality analysis

Mawejje, Joseph; Odhiambo, Nicholas M.

doi:10.1108/jefas-07-2021-0124

Cited by 12 publications

(9 citation statements)

References 66 publications

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“…Thus, in these tests, the error correction terms with lags can be included, provided that the variables are cointegrated. Moreover, the multi-variable Granger causality test allows us to include as additional control variables the differenced lagged values of all variables in the ARDL error correction model [45].…”

Section: Panel Causality Testmentioning

confidence: 99%

“…The second step consists of the use of residuals with a one-time lag from the above function as an error correction term in an ARDL panel system that is used for short-and long-run multivariable Granger causality. Multi-variable Granger causality allows us to include as additional control variables the differenced lagged values of all variables in the error correction ARDL model [45].…”

Section: Panel Causality Testmentioning

confidence: 99%

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R&D Expenditures on Innovation: A Panel Cointegration Study of the E.U. Countries

Dritsaki

2023

Sustainability

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In academic discussions about how to achieve sustainable growth in the world, it is stated that this is not possible without spending on research and development and innovative activities so that countries can maintain their competitiveness in the global environment. The EU has defined strategies that consider innovation as a key element for stimulating growth and creatung employment. In this context, this study examines the relationship between R&D expenditures and the global innovation index in the scope of EU countries. A PVAR model and annual data from 2007 to 2020 were used for the relationship between research expenditures and growth in the innovation of EU countries. We first examined the cross-sectional and cross-country homogeneity of slopes. The second-generation unit root test was then applied using the Pesaran CIPS (2007) test, and the ARDL panel model was applied to test for cointegration. Causal analyses with the panel ARDL model and the error correction model were applied to determine the relationships of the variables and their direction. For the long-term dynamic effects between variables, an impulse response function (IRF) was used, and for the degree of the effect between R&D expenditures and the global innovation index, variance decomposition was used. The results of this paper reveal a long-term positive significant relationship between R&D spending and the global innovation index, whereas in the short-term, this relationship is negative. Furthermore, the causality results of the error correction ARDL model show unidirectional short-run and long-run causality from research and development to the global innovation index in EU countries. Finally, this paper enhances the understanding of the relationship between research and development spending and the global innovation index in EU countries.

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Section: Panel Causality Testmentioning

confidence: 99%

Section: Panel Causality Testmentioning

confidence: 99%

R&D Expenditures on Innovation: A Panel Cointegration Study of the E.U. Countries

Dritsaki

2023

Sustainability

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“…Moreover, a new study expands the discussion of the implications for monetary policy after the financial crisis by analyzing the longitudinal effect of the informational content of local credit rating announcements on the liquidity of their sovereign bond markets in emerging markets such as Argentina, Mexico, Peru, Hungary, Poland, Spain, Turkey, Hong Kong and Greece (Saadaoui et al, 2022). On the other hand, a new study contributes to the fiscal policy implications by analyzing the dynamic causality between fiscal deficits on macroeconomic indicators such as gross domestic product, current account balance, interest rates, inflation, donations and the debt service of the East African Community countries (Mawejje and Odhiambo, 2022).…”

Section: Presentmentioning

confidence: 99%

“…On the other hand, a new study contributes to the fiscal policy implications by analyzing the dynamic causality between fiscal deficits on macroeconomic indicators such as gross domestic product, current account balance, interest rates, inflation, donations and the debt service of the East African Community countries (Mawejje and Odhiambo, 2022).…”

Section: Presentmentioning

confidence: 99%

Editorial: Past, present and future of a developing journey for 30 years

Salcedo¹,

Talavera²,

Harr³

2022

JEFAS

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We are proud to present issue 53 and celebrate the 30th anniversary of creating the Journal of Economics, Finance and Administrative Science (JEFAS) by ESAN Graduate School of Business (currently University ESAN). This year is significant considering the upcoming 60th anniversary of the ESAN Graduate School of Business, founded as the product of a three-way agreement involving the Government of Peru, the US Agency for International Development and Stanford Graduate School of Business. This landscape allowed establishing the goal of always seeking and achieving high-quality research in business and economics for contributing to the academic community, policymakers and management practice.The journey so far has been long and challenging, with outstanding achievements thanks to the members involved in the editorial team from its creation to the present day. Some are no longer on this journey. However, each one contributed significantly to the legacy that the JEFAS has consolidated through its challenges, review and roadmap (Haar, 2015;Salcedo, 2021a) and continually encouraging high-quality publications (Salcedo, 2021b) through its strong collaboration (Aria and Cuccurullo, 2017), as shown in Figure 1. PastStarting with the name "Cuadernos de Difusi on," the journal began with a significant contribution of business case studies, research proposals and research from the Latin American context. Later, it expanded to special issues, such as publications for the Asia-Pacific Economic Cooperation -APEC (Davidson, 2008;Yamazawa, 1997) or ethics and corporate social responsibility (Paladino et al., 2005), among others. In addition to influencing research with global discussions between developing versus developed countries (Reinert, 2002) and addressing empirical studies with greater quantitative rigor (Muñoz Negr on, 2009), following the new technological tools that facilitated it. These significant advances allowed the international indexing and the consolidation of its new name in 2009, Journal of Economics, Finance and Administrative Science (JEFAS).

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“…Nevertheless, the size of the informal sector in Eastern and Southern Africa remains sizeable, and like in most parts of the world, recent shocks including the COVID‐19 pandemic may have exacerbated informality (Ohnsorge & Yu, 2022). As countries look to recover from multiple shocks, fiscal policy is expected to play an important role (Mawejje & Odhiambo, 2022a, 2022b; Sennoga & Balma, 2022), with recent evidence suggesting that fiscal policy has become less procyclical in these countries (Mawejje & Odhiambo, 2023). Therefore, in the context of widespread and persistent informality, a reexamination of the growth effects of government expenditure is warranted.…”

Section: Introductionmentioning

confidence: 99%

Government expenditure, informality, and economic growth: Evidence from Eastern and Southern African countries

Mawejje

2024

African Development Review

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This study investigates the dynamic linkages among government expenditure, informality, and economic growth in 15 Eastern and Southern African countries over a 25‐year period during 1991–2015. The analysis exploits panel vector autoregressive models to construct the time path of one variable following an orthogonal shock to another variable using impulse response functions. The analysis is complemented by panel quantile regressions to investigate the potential role of informality in the expenditure–economic growth nexus. The findings are threefold. First, both government consumption and investment expenditure have positive and significant effects on real per capita GDP. Second, informality has a direct negative impact on real per capita GDP. Third, the informal sector dampens the impact of government expenditure on real per capita GDP. These results are robust to the inclusion of selected control variables and are unchanged across GDP quantiles. The study's findings suggest that government policies aimed at reducing informality can have direct impacts on economic growth and indirect impacts through improvements in the effectiveness of government expenditure.

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Macroeconomic determinants of fiscal policy in East Africa: a panel causality analysis

Cited by 12 publications

References 66 publications

R&D Expenditures on Innovation: A Panel Cointegration Study of the E.U. Countries

R&D Expenditures on Innovation: A Panel Cointegration Study of the E.U. Countries

Editorial: Past, present and future of a developing journey for 30 years

Government expenditure, informality, and economic growth: Evidence from Eastern and Southern African countries

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