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Fiscal Policy and Economic Growth: An Examination of Selected Countries in Sub-Saharan Africa

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  • Uche Boniface Ugwuanyi
  • Okelue David Ugwunta

Abstract

The debate on the effectiveness of fiscal policy as a tool for promoting growth and development remains inconclusive given the positions of economic theories as well as conflicting results of past studies. This study sought to determine the effect of fiscal policy variables on the economic growth of sub-Saharan African countries. The ex-post facto research design was adopted which enabled the study to make use of secondary data from sub-Saharan African Countries in a panel least squares. The result of the linearly modelled hypotheses tested using the panel data estimation technique under the fixed-effect assumptions revealed that Government productive and unproductive expenditures, distortionary tax (a proportional tax on output at rate) and non-distortionary taxes have significant effects on the economic growth of sub-Saharan African countries. Findings also revealed that budget balances of sub-Saharan African countries have a positive but insignificant effect on the economic growth of sub-Saharan African countries.

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  • Uche Boniface Ugwuanyi & Okelue David Ugwunta, 2017. "Fiscal Policy and Economic Growth: An Examination of Selected Countries in Sub-Saharan Africa," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 7(1), pages 117-130, January.
    • Handle: RePEc:hur:ijaraf:v:7:y:2017:i:1:p:117-130
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    6. Stoyan Tanchev & Naftaly Mose, 2023. "Fiscal Policy and Economic Growth: Evidence from European Union Countries," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 19-36.
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    8. Juan-Pierré BRUWER & Mariaan LOMBARD & Yolandé SMIT & Ankit KATRODIA, 2019. "The Influence of Excise Taxation Levied on Product Sales on the Financial Sustainability of South African Tobacco-and-Alcohol-Selling Small, Medium and Micro Enterprise," Expert Journal of Business and Management, Sprint Investify, vol. 7(1), pages 100-106.
    9. Atdhetar Gara & Vese Qehaja-Keka & Abdylmenaf Bexheti & Arber Hoti & Driton Qehaja, 2024. "Impact of Fiscal Policy on Economic Growth: Evidence from South East European Countries," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 65-77.
    10. Guivis Zeufack Nkemgha & Eric Mouchili Moumie, 2020. "Growth Effect of Fiscal Policy in Dependent Natural Resources Countries: Case of a Monetary Union," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(2), pages 96-105, June.

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