Cyclicality of Fiscal Policy in Sub-Saharan Africa : Magnitude and Evolution
This paper studies the cyclical aspects of fiscal policy in Sub-Saharan Africa countries during 1970–2014. It compares the cyclical properties of real government consumption in the region with those in other developing regions and high-income count...
| Main Authors: | , , |
|---|---|
| Format: | Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2017
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/275241498141530465/Cyclicality-of-fiscal-policy-in-Sub-Saharan-Africa-magnitude-and-evolution http://hdl.handle.net/10986/27606 |
| id |
okr-10986-27606 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-276062021-06-08T14:42:47Z Cyclicality of Fiscal Policy in Sub-Saharan Africa : Magnitude and Evolution Calderon, Cesar Chuhan-Pole, Punam Lopez-Monti, Rafael M. FISCAL POLICY BUSINESS CYCLES CYCLICALITY This paper studies the cyclical aspects of fiscal policy in Sub-Saharan Africa countries during 1970–2014. It compares the cyclical properties of real government consumption in the region with those in other developing regions and high-income countries, and examines whether there has been a change in the cyclical nature of fiscal policy in recent years. The analysis finds that government consumption is procyclical in Sub-Saharan African countries, more so than in other regions, and that accounting for endogeneity increases the degree of cyclicality. The cyclical properties of government spending vary along the business cycle, with the level of cyclicality being larger when the level of real economic activity is above the trend relative to when it is below the trend. Mirroring the pattern in other developing regions, the degree of cyclicality has changed since 2002 in Sub-Saharan Africa, with incipient signs of a shift toward acyclical or more countercyclical policies. The evidence does not suggest that resource wealth or fragility increases the procyclicality of government consumption in Sub-Saharan Africa. Official development assistance is found to exacerbate the procyclical stance of fiscal policy in the region, but the result depends on the relative size of foreign aid received. 2017-07-17T20:50:03Z 2017-07-17T20:50:03Z 2017-06 Working Paper http://documents.worldbank.org/curated/en/275241498141530465/Cyclicality-of-fiscal-policy-in-Sub-Saharan-Africa-magnitude-and-evolution http://hdl.handle.net/10986/27606 English en_US Policy Research Working Paper;No. 8108 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Africa Southern Africa |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
FISCAL POLICY BUSINESS CYCLES CYCLICALITY |
| spellingShingle |
FISCAL POLICY BUSINESS CYCLES CYCLICALITY Calderon, Cesar Chuhan-Pole, Punam Lopez-Monti, Rafael M. Cyclicality of Fiscal Policy in Sub-Saharan Africa : Magnitude and Evolution |
| geographic_facet |
Africa Southern Africa |
| relation |
Policy Research Working Paper;No. 8108 |
| description |
This paper studies the cyclical aspects
of fiscal policy in Sub-Saharan Africa countries during
1970–2014. It compares the cyclical properties of real
government consumption in the region with those in other
developing regions and high-income countries, and examines
whether there has been a change in the cyclical nature of
fiscal policy in recent years. The analysis finds that
government consumption is procyclical in Sub-Saharan African
countries, more so than in other regions, and that
accounting for endogeneity increases the degree of
cyclicality. The cyclical properties of government spending
vary along the business cycle, with the level of cyclicality
being larger when the level of real economic activity is
above the trend relative to when it is below the trend.
Mirroring the pattern in other developing regions, the
degree of cyclicality has changed since 2002 in Sub-Saharan
Africa, with incipient signs of a shift toward acyclical or
more countercyclical policies. The evidence does not suggest
that resource wealth or fragility increases the
procyclicality of government consumption in Sub-Saharan
Africa. Official development assistance is found to
exacerbate the procyclical stance of fiscal policy in the
region, but the result depends on the relative size of
foreign aid received. |
| format |
Working Paper |
| author |
Calderon, Cesar Chuhan-Pole, Punam Lopez-Monti, Rafael M. |
| author_facet |
Calderon, Cesar Chuhan-Pole, Punam Lopez-Monti, Rafael M. |
| author_sort |
Calderon, Cesar |
| title |
Cyclicality of Fiscal Policy in Sub-Saharan Africa : Magnitude and Evolution |
| title_short |
Cyclicality of Fiscal Policy in Sub-Saharan Africa : Magnitude and Evolution |
| title_full |
Cyclicality of Fiscal Policy in Sub-Saharan Africa : Magnitude and Evolution |
| title_fullStr |
Cyclicality of Fiscal Policy in Sub-Saharan Africa : Magnitude and Evolution |
| title_full_unstemmed |
Cyclicality of Fiscal Policy in Sub-Saharan Africa : Magnitude and Evolution |
| title_sort |
cyclicality of fiscal policy in sub-saharan africa : magnitude and evolution |
| publisher |
World Bank, Washington, DC |
| publishDate |
2017 |
| url |
http://documents.worldbank.org/curated/en/275241498141530465/Cyclicality-of-fiscal-policy-in-Sub-Saharan-Africa-magnitude-and-evolution http://hdl.handle.net/10986/27606 |
| _version_ |
1764465474196733952 |