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How Robust Is the Link Between Growth and Fiscal Consolidations Amid Uncertainties? A Reassessment for Sub-Saharan Africa

Author

Listed:
  • Miaomiao Tao

    (The University of Auckland)

  • Jamel Saadaoui

    (University Paris 8)

  • Emilson Silva

    (The University of Auckland)

Abstract

We revisit the relationship between fiscal tightening and economic growth within the Sub-Saharan African context, employing a local projection framework augmented with instruments. In contrast to the conclusions reached by Badru et al. (2025), our findings highlights that fiscal consolidation triggers the growth-depressing effect, independent of the estimation technique used. This contractionary impact intensifies under heightened global uncertainty – whether gauged through geopolitical tension metrics or economic policy unpredictability measures.

Suggested Citation

  • Miaomiao Tao & Jamel Saadaoui & Emilson Silva, 2025. "How Robust Is the Link Between Growth and Fiscal Consolidations Amid Uncertainties? A Reassessment for Sub-Saharan Africa," Working Papers 2025.7, International Network for Economic Research - INFER.
    • Handle: RePEc:inf:wpaper:2025.7
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    More about this item

    Keywords

    Fiscal consolidation; economic growth; local projection; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • E - Macroeconomics and Monetary Economics
    • H - Public Economics

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