More elections, more burden? On the relationship between elections and public debt in Africa

Bayale, Nimonka and Tchagnao, Abdou-Fataou and Chavula, Hopestone Kayiska (2020): More elections, more burden? On the relationship between elections and public debt in Africa. Published in: African Review of Economics and Finance , Vol. X, No. XX (10 July 2020): pp. 22-47.

Abstract

The political determinants of public indebtedness in developing countries is still generating a lot of interest among academics and policy makers. This paper investigates whether elections influence the public debt dynamics relying on data from 51 African countries spanning 1990 to 2015. The analyses are conducted using the fixed effects and the system Generalized Method of Moments (GMM). The results reveal that although all types of elections increase public debt, only the impact of the presidential elections are significant. The findings are robust irrespective of the estimation technique. The paper recommends African countries to rationalize public resources, particularly in the election years.

• Item Type: MPRA Paper
• Language: English
• Keywords: Public debt; Elections; Africa; Fixed effects; System GMM.
• Subjects: C - Mathematical and Quantitative Methods > C2 - Single Equation Models ; Single Variables > C23 - Panel Data Models ; Spatio-temporal Models; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D72 - Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior; F - International Economics > F3 - International Finance > F34 - International Lending and Debt Problems; H - Public Economics > H6 - National Budget, Deficit, and Debt > H60 - General; N - Economic History > N1 - Macroeconomics and Monetary Economics ; Industrial Structure ; Growth ; Fluctuations > N17 - Africa ; Oceania

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