IDEAS home Printed from https://ideas.repec.org/p/imf/imfwpa/2002-108.html
   My bibliography  Save this paper

Experience with Budgetary Convergence in the WAEMU

Author

Listed:
  • Mr. Paul R Masson
  • Mr. Ousmane Dore

Abstract

This paper reviews the experience of fiscal adjustment undertaken in the West African Economic and Monetary Union (WAEMU) countries since the entry into force of the 1994 treaty establishing the framework for a regional convergence of national fiscal policies. We propose a measure of the structural deficit that corrects for movements of both the business cycle and terms of trade. Though the fiscal deficit worsened in 1998-2001 in some countries because of terms of trade deterioration and unfavorable movements in the business cycle, convergence stalled even when corrected for these factors. Meeting fiscal deficit targets in the future will be facilitated by a favorable external environment but, in any case, will require a higher revenue ratio and downward pressure on government wages as shares of GDP.

Suggested Citation

  • Mr. Paul R Masson & Mr. Ousmane Dore, 2002. "Experience with Budgetary Convergence in the WAEMU," IMF Working Papers 2002/108, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2002/108
    as

    Download full text from publisher

    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=15848
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ernesto Talvi & Carlos A. Vegh, 2000. "Tax Base Variability and Procyclical Fiscal Policy," NBER Working Papers 7499, National Bureau of Economic Research, Inc.
    2. Alberto Alesina & Roberto Perotti, 1997. "Fiscal Adjustments in OECD Countries: Composition and Macroeconomic Effects," IMF Staff Papers, Palgrave Macmillan, vol. 44(2), pages 210-248, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kohnert, Dirk, 2005. "Die UEMOA und die CFA-Zone: Eine neue Kooperations-Kultur im frankophonen Afrika?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 115-136.
    2. Xavier Debrun & Paul Masson & Catherine Pattillo, 2005. "Monetary union in West Africa: who might gain, who might lose, and why?," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(2), pages 454-481, May.
    3. Mr. P. van den Boogaerde & Mr. Charalambos G Tsangarides, 2005. "Ten Years After the CFA Franc Devaluation: Progress Toward Regional Integration in the WAEMU," IMF Working Papers 2005/145, International Monetary Fund.
    4. Nihal Bayraktar & Blanca Moreno-Dodson, 2018. "Public Expenditures And Growth In A Monetary Union: The Case Of Waemu," Eurasian Journal of Economics and Finance, Eurasian Publications, vol. 6(1), pages 107-132.
    5. Kohnert, Dirk, 2005. "African Monetary Unions - Dominated by the North? On the Relevance of Rational Economic Reasoning Under African Conditions," MPRA Paper 82083, University Library of Munich, Germany.
    6. Jannie Rossouw, 2006. "An Analysis Of Macro‐Economic Convergence In Sadc1," South African Journal of Economics, Economic Society of South Africa, vol. 74(3), pages 382-390, September.
    7. Paweł Młodkowski, 2006. "Konwergencja fiskalna w uniach walutowych w Afryce na tle rozwiązań europejskich," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 1-2, pages 19-36.
    8. Cheikh Tidiane Ndiaye & Mamadou Abdoulaye Konte, 2012. "Politiques macroéconomiques et stabilisation des chocs dans la zone UEMOA," Working Papers halshs-00830595, HAL.
    9. Mamadou Abdoulaye KONTE & Cheikh Tidiane NDIAYE, 2012. "Politiques macroéconomiques et stabilisation des chocs dans la zone UEMOA," LEO Working Papers / DR LEO 1340, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria Neicheva, 2006. "Non-Keynesian Effects of Government Expenditure on Output in Bulgaria: An HP Filter Approach," Post-Communist Economies, Taylor & Francis Journals, vol. 18(1), pages 1-12.
    2. Enisse Kharroubi & Philippe Aghion, 2008. "Cyclical Macro Policy and Industry Growth: The effect of counter-cyclical fiscal policy," 2008 Meeting Papers 837, Society for Economic Dynamics.
    3. World Bank, 2003. "Saint Kitts and Nevis - OECS Fiscal Issues : Policies to Achieve Fiscal Sustainability and Improve Efficiency and Equity of Public Expenditures," World Bank Publications - Reports 14578, The World Bank Group.
    4. Philippe Aghion & Ioana Marinescu, 2008. "Cyclical Budgetary Policy and Economic Growth: What Do We Learn from OECD Panel Data?," NBER Chapters, in: NBER Macroeconomics Annual 2007, Volume 22, pages 251-278, National Bureau of Economic Research, Inc.
    5. Briotti, Maria Gabriella, 2004. "Fiscal adjustment between 1991 and 2002: stylised facts and policy implications," Occasional Paper Series 9, European Central Bank.
    6. Dorothée Allain-Dupré & Claudia Hulbert & Margaux Vincent, 2017. "Subnational Infrastructure Investment in OECD Countries: Trends and Key Governance Levers," OECD Regional Development Working Papers 2017/05, OECD Publishing.
    7. Andres, Javier & Domenech, Rafael & Fatas, Antonio, 2008. "The stabilizing role of government size," Journal of Economic Dynamics and Control, Elsevier, vol. 32(2), pages 571-593, February.
    8. Milan Deskar-Skrbic & Darjan Milutinovic, 2021. "Design of fiscal consolidation packages and model-based fiscal multipliers in Croatia," Public Sector Economics, Institute of Public Finance, vol. 45(1), pages 1-61.
    9. Ms. Francesca Castellani & Mr. Xavier Debrun, 2001. "Central Bank Independence and the Design of Fiscal Institutions," IMF Working Papers 2001/205, International Monetary Fund.
    10. Vito Tanzi, 2005. "Fiscal Policy and Fiscal Rules in the European Union," CASE Network Studies and Analyses 0301, CASE-Center for Social and Economic Research.
    11. World Bank, 2005. "Dominica : OECS Fiscal Issues, Policies to Achieve Fiscal Sustainability and Improve Efficiency and Equity of Public Expenditures," World Bank Publications - Reports 8681, The World Bank Group.
    12. Jiménez, Juan Pablo & Tromben, Varinia, 2006. "Fiscal policy and the commodities boom: the impact of higher prices for non-renewables in Latin America and the Caribbean," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    13. Christopher J. Erceg & Jesper Lindé, 2011. "Asymmetric Shocks in a Currency Union with Monetary and Fiscal Handcuffs," NBER International Seminar on Macroeconomics, University of Chicago Press, vol. 7(1), pages 95-136.
    14. Christina D. Romer & David H. Romer, 2010. "The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks," American Economic Review, American Economic Association, vol. 100(3), pages 763-801, June.
    15. Hüseyin ŞEN & Ayşe KAYA, 2017. "Mali Konsolidasyon Büyüme ve İstihdam için Bir Çıpa mı, Mali Tuzak mı? Teorik ve Ampirik Literatür Temelli Bir Analiz," Sosyoekonomi Journal, Sosyoekonomi Society, issue 25(34).
    16. Lora, Eduardo, 2008. "El futuro de los pactos fiscales en América Latina," Coediciones, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 1310.
    17. Gabriella Deborah Legrenzi & Costas Milas, 2010. "Spend-and-Tax Adjustments and the Sustainability of the Government's Intertemporal Budget Constraint," CESifo Working Paper Series 2926, CESifo.
    18. Ernesto Talvi & Carlos A. Végh, 1998. "Fiscal Policy Sustainability: A Basic Framework," Research Department Publications 3070, Inter-American Development Bank, Research Department.
    19. António Afonso & Peter Claeys & Ricardo Sousa, 2011. "Fiscal regime shifts in Portugal," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 10(2), pages 83-108, August.
    20. Fardoust, Shahrokh & Lin, Justin Yifu & Luo, Xubei, 2012. "Demystifying China's fiscal stimulus," Policy Research Working Paper Series 6221, The World Bank.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:imf:imfwpa:2002/108. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Akshay Modi (email available below). General contact details of provider: https://edirc.repec.org/data/imfffus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.