Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/taf/oaefxx/v10y2022i1p2107149.html
   My bibliography  Save this article

Fiscal policy, sovereign debt and economic growth in SADC economies: A panel vector autoregression analysis

Author

Listed:
  • Bongumusa Prince Makhoba
  • Irrshad Kaseeram
Abstract
This study estimates a Panel Vector Autoregressive (PVAR) approach to analyse the impact of fiscal policy and public debt on economic growth in Southern African Developing Communities (SADC). The study further estimated the fixed effects (FE) and random effects (RE) to verify the robustness of empirical findings. The results provide rigorous empirical evidence of a positive response of GDP growth due to shocks in government expenditure, employment, and public debt while gross capital formation exerts a negative effect on economic growth. The study proposes that fiscal authorities ought to focus on the adoption of prudent fiscal policies as a credible stabilization tool at the disposal of policymakers to safeguard stable and yet productive public finances consistent with sustainable economic prosperity. These may include addressing infrastructural development, soaring fiscal deficit, creation of jobs, and creating a conducive environment for both labour and capital-intensive projects to flourish in the SADC economies.

Suggested Citation

  • Bongumusa Prince Makhoba & Irrshad Kaseeram, 2022. "Fiscal policy, sovereign debt and economic growth in SADC economies: A panel vector autoregression analysis," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2107149-210, December.
    • Handle: RePEc:taf:oaefxx:v:10:y:2022:i:1:p:2107149
    DOI: 10.1080/23322039.2022.2107149
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23322039.2022.2107149
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23322039.2022.2107149?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Sue Abdinnour & Sesan Oluseyi Adeniji, 2023. "Empirical analysis of the impact of entrepreneurial activity on economic growth of Global Entrepreneurship Monitor (GEM) countries," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 13(1), pages 1-11, December.

    More about this item

    Statistics

    Access and download statistics

    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:taf:oaefxx:v:10:y:2022:i:1:p:2107149. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/OAEF20 .

    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.