Determinants of fiscal effort in sub-Saharan African countries: Does conflict matter?Princewill Okwoche and
Iheonu Chimere O. ()
Economics and Business Review, 2021, vol. 7, issue 2, 50-73 Abstract: This study investigates the determinants of fiscal effort in sub-Saharan African (SSA) within the framework of fiscal reaction functions. Whereas previous studies focusing on SSA have mainly considered the economic non-debt determinants this study accounts for the role of conflict given its persistence in many SSA countries. It employs a variety of panel econometric methods that are applicable in tackling the problem of endogeneity. Specifically the study employs the instrumental variables fixed effects, the two-step generalised method of moments (GMM) and the traditional two-stage least squares techniques. Mainly the evidence shows that although SSA governments have made fiscal adjustments in response to the escalating levels of debt, conflict impacts negatively on this response in SSA. Furthermore, the results affirm the presence of fiscal fatigue in SSA’s fiscal reaction function. Recommendations based on these findings are discussed. Keywords: fiscal reaction functions; conflict; sub-Saharan Africa (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecobur:v:7:y:2021:i:2:p:50-73:n:2 Access Statistics for this article Economics and Business Review is currently edited by Tadeusz Kowalski More articles in Economics and Business Review from Sciendo |
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