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Cyclical Patterns of Government Expenditures in Sub-Saharan Africa

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  • Irene Yackovlev
  • Victor Duarte Lledo
  • Lucie Gadenne

Abstract

This paper documents cyclical patterns of government expenditures in sub-Saharan Africa since 1970 and explains variation between countries and over time. Controlling for endogeneity, it finds government expenditures to be slightly more procyclical in sub-Saharan Africa than in other developing countries and some evidence that procyclicality in Africa has declined in recent years after a period of sharp increase through the 1990s. Greater fiscal space, proxied by lower external debt, and better access to concessional financing, proxied by larger aid flows, seem to be important factors in diminishing procyclicality in the region. The role of institutions is less clear cut: changes in political institutions have no impact on procyclicality.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 09/274.

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Length: 31
Date of creation: 01 Dec 2009
Date of revision:
Handle: RePEc:imf:imfwpa:09/274

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Related research

Keywords: Government expenditures; Aid flows; Capital flows; Developing countries; Economic models; External debt; fiscal policy; government spending; fiscal space; expenditures; public external debt; central government spending; central government expenditures; public debt; fiscal policies; public spending; fiscal behavior; fiscal balance; fiscal deficits; tax revenues; cyclical fiscal policy; fiscal multipliers; fiscal sustainability; expenditure; tax base; fiscal expansions; fiscal shocks; fiscal spending; fiscal patterns; government expenditure; fiscal discipline; fiscal institutions; fiscal variable; tax rates; foreign capital; tax bases; fiscal profligacy; fiscal controls; fiscal flexibility; expenditure composition; fiscal stabilization policies; fiscal prudence; fiscal reaction; expansionary fiscal policy; budget deficits; fiscal shock; fiscal reaction function; public finance; fiscal policy objectives; fiscal stabilization; revenue collection; fiscal position; expansionary fiscal; fiscal frameworks; medium-term fiscal frameworks; fiscal commitments; fiscal restraint; fiscal decision; fiscal rule; fiscal data; fiscal policy on output growth; fiscal rules;

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References

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Citations

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Cited by:
  1. Pedro Conceição & Sebastian Levine, 2011. "The African Moment: On the Brink of a Development Breakthrough," Working Papers, United Nations Development Programme, Regional Bureau for Africa (UNDP/RBA) 2011-001, United Nations Development Programme, Regional Bureau for Africa (UNDP/RBA).
  2. Nese Erbil, 2011. "Is Fiscal Policy Procyclical in Developing Oil-Producing Countries?," IMF Working Papers 11/171, International Monetary Fund.
  3. Sophia Gollwitzer & Eteri Kvintradze & Tej Prakash & Luis-Felipe Zanna & Era Dabla-Norris & Richard Allen & Irene Yackovlev & Victor Duarte Lledo, 2010. "Budget Institutions and Fiscal Performance in Low-Income Countries," IMF Working Papers 10/80, International Monetary Fund.

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