The Impact of Fiscal Consolidations on Growth in Sub-Saharan Africa
Title | The Impact of Fiscal Consolidations on Growth in Sub-Saharan Africa PDF eBook |
Author | Francisco Arizala |
Publisher | International Monetary Fund |
Total Pages | 32 |
Release | 2017-12-14 |
Genre | Business & Economics |
ISBN | 148433311X |
This paper examines the output effects of changes in public expenditure and revenue in sub-Saharan African countries during 1990–2016. Fiscal multipliers in sub-Saharan Africa are somewhat smaller than those in advanced and emerging economies. The effect of changes in fiscal policy on output depends on the composition: cutting public investment has a larger effect on output than cutting public consumption or raising revenue. Episodes of fiscal consolidation have short- and medium-term output effects, but here, too, composition matters: fiscal consolidations based on reducing public investment have the largest effect on output, while fiscal consolidations based on revenue mobilization are less harmful than those based on public investment cuts. These findings suggest that the negative impact on growth can be mitigated through the design of fiscal adjustment and the accompanying policy environment.
Exiting From Fragility in sub-Saharan Africa
Title | Exiting From Fragility in sub-Saharan Africa PDF eBook |
Author | Corinne Deléchat |
Publisher | International Monetary Fund |
Total Pages | 46 |
Release | 2015-12-22 |
Genre | Business & Economics |
ISBN | 1513521810 |
This paper studies the role of fiscal policies and institutions in building resilience in sub-Saharan African countries during 1990-2013, with specific emphasis on a group of twenty-six countries that were deemed fragile in the 1990s. As the drivers of fragility and resilience are closely intertwined, we use GMM estimation as well as a probabilistic framework to address endogeneity and reverse causality. We find that fiscal institutions and fiscal space, namely the capacity to raise tax revenue and contain current spending, as well as lower military spending and, to some extent, higher social expenditure, are significantly and fairly robustly associated with building resilience. Similar conclusions arise from a study of the progression of a group of seven out of the twenty-six sub- Saharan African countries that managed to build resilience after years of civil unrest and/or violent conflict. These findings suggest relatively high returns to focusing on building sound fiscal institutions in fragile states. The international community can help this process through policy advice, technical assistance, and training on tax administration and budget reforms.
Regional Economic Outlook, October 2017, Sub-Saharan Africa
Title | Regional Economic Outlook, October 2017, Sub-Saharan Africa PDF eBook |
Author | International Monetary Fund. African Dept. |
Publisher | International Monetary Fund |
Total Pages | 129 |
Release | 2017-11-27 |
Genre | Business & Economics |
ISBN | 1484320972 |
Growth in sub-Saharan Africa has recovered relative to 2016, but the momentum is weak and per capita incomes are expected to barely increase. Further, vulnerabilities have risen in many countries, adding to the urgency of implementing the fiscal consolidations planned in most countries and with stepped up efforts to strengthen growth.
Regional Economic Outlook, October 2017, Sub-Saharan Africa
Title | Regional Economic Outlook, October 2017, Sub-Saharan Africa PDF eBook |
Author | International Monetary Fund. African Dept. |
Publisher | International Monetary Fund |
Total Pages | 129 |
Release | 2017-11-27 |
Genre | Business & Economics |
ISBN | 1484312511 |
Growth in sub-Saharan Africa has recovered relative to 2016, but the momentum is weak and per capita incomes are expected to barely increase. Further, vulnerabilities have risen in many countries, adding to the urgency of implementing the fiscal consolidations planned in most countries and with stepped up efforts to strengthen growth.
Fiscal Policy in Sub-Saharan Africa in Response to the Impact of the Global Crisis
Title | Fiscal Policy in Sub-Saharan Africa in Response to the Impact of the Global Crisis PDF eBook |
Author | Norbert Funke |
Publisher | INTERNATIONAL MONETARY FUND |
Total Pages | 18 |
Release | 2009-05-14 |
Genre | |
ISBN | 9781462335404 |
Adjustment and Growth in Sub-Saharan Africa
Title | Adjustment and Growth in Sub-Saharan Africa PDF eBook |
Author | Mr.Anupam Basu |
Publisher | International Monetary Fund |
Total Pages | 36 |
Release | 1999-04-01 |
Genre | Business & Economics |
ISBN | 1451847092 |
This paper analyzes the factors affecting economic growth in sub-Saharan Africa, using data for 1981–97. The results indicate that per capita real GDP growth is positively influenced by economic policies that raise the ratio of private investment to GDP, promote human capital development, lower the ratio of the budget deficit to GDP, safeguard external competitiveness, and stimulate export volume growth. The favorable evolution of these variables played an important role in the region’s apparent postreform recovery of 1995–97. The paper also discusses a policy framework to promote sustainable economic growth and reduce poverty in sub-Saharan Africa
Growth in Sub-Saharan Africa
Title | Growth in Sub-Saharan Africa PDF eBook |
Author | Mr.Dhaneshwar Ghura |
Publisher | International Monetary Fund |
Total Pages | 32 |
Release | 1995-12-01 |
Genre | Business & Economics |
ISBN | 1451855753 |
The paper investigates empirically the determinants of economic growth for a large sample of sub-Saharan African countries during 1981-92. The results indicate that (i) an increase in private investment has a relatively large positive impact on per capita growth; (ii) growth is stimulated by public policies that lower the budget deficit in relation to GDP (without reducing government investment), reduce the rate of inflation, maintain external competitiveness, promote structural reforms, encourage human capital development, and slow population growth; and (iii) convergence of per capita income occurs after controlling for human capital development and public policies.