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Cyclical Patterns of Government Expenditures in Sub-Saharan Africa: Facts and Factors

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Author Info

  • 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;

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References

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Citations

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Cited by:
  1. Nese Erbil, 2011. "Is Fiscal Policy Procyclical in Developing Oil-Producing Countries?," IMF Working Papers 11/171, International Monetary Fund.
  2. 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.
  3. Pedro Conceição & Sebastian Levine, 2011. "The African Moment: On the Brink of a Development Breakthrough," Working Papers 2011-001, United Nations Development Programme, Regional Bureau for Africa (UNDP/RBA).

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