Logo
Munich Personal RePEc Archive

Political and Institutional Determinants of Fiscal Policy Persistence in West Africa

Umoh, O. J. and Onye, Kenneth U. and Atan, Johnson A. (2018): Political and Institutional Determinants of Fiscal Policy Persistence in West Africa. Forthcoming in:

[thumbnail of MPRA_paper_88452.pdf]
Preview
PDF
MPRA_paper_88452.pdf

Download (356kB) | Preview

Abstract

This study investigates the political economy of fiscal policy making in West Africa by relying on a two-fold estimation technique, namely – the Instrumental variable regression model which accounts for potential endogeneity issue in the data and the Generalized Least Square regression model. The analysis covered 14 West African countries and spans over the period 1980 to 2016. The key results are as follows. First, we find evidence that fiscal policy has been more persistence in the region. This suggests that the governments of West African economies are either unwilling or just unable to adequately implement counter-cyclical fiscal policy. Second, fiscal policymaking has generally been drivenby political and institutional factor rather than on the basis of sound economic considerations. And third, the core politico-institutional factors determining fiscal persistence include corruption, government effectiveness and rule of law.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.