Fiscal policy and economic growth in South Africa

Ocran, Matthew Kofi

doi:10.1108/01443581111161841

Cited by 37 publications

(22 citation statements)

References 33 publications

(53 reference statements)

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“…In one of the earliest studies on fiscal policy impact, Perkins et al (2005) investigate the effects of public infrastructure investments on economic growth and find a bidirectional relationship between the variables. Ocran (2011), investigates the impact of fiscal policy on output and interest rate. While he finds the impact on output to be modest but persistent, the impact on interest rate is found to be substantial but temporary.…”

Section: Empirical Evidencementioning

confidence: 99%

Fiscal policy, employment, and output in South Africa: An open economy analysis

Mlilo

Kollamparambi

2016

JEFS

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Section: Empirical Evidencementioning

confidence: 99%

Fiscal policy, employment, and output in South Africa: An open economy analysis

Mlilo

Kollamparambi

2016

JEFS

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“…Additionally, Matthew (2011) examines the effect of fiscal policy on economic growth in South Africa using a quarterly data from 1990Q1 to 2008Q4 by adopting a SVAR model of Blanchard and Perotti (2002). The result supports the arguments that, the effect of fiscal policy on real output tends to be uncertain, though persistent and significant through shocks on public consumption expenditure, public investment expenditure, tax revenue and budget deficits.…”

Section: Evidence In Support Of Keynesian Propositionmentioning

confidence: 52%

“…The structure, efficiency and effectiveness of public spending impact upon the ability of government to create a conducive business environment, deliver developmental goods and achieve national prosperity (Matthew, 2011;Alex and Ebieri, 2014). In particular, the adequacy and quality of public goods such as infrastructure, utilities and related services largely depend on the nature and quality of public spending.…”

Section: An Overview Of Fiscal Operations In Nigeriamentioning

confidence: 99%

Fiscal Operations and Macroeconomic Growth: The Nigerian Experience

Idris

Bakar

2017

International Journal of Social and Administrative Sciences

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Article HistoryOver the years in Nigeria, the trend of fiscal expenditures continues to increase rapidly without any corresponding increase in the level of revenue. This scenario had deteriorated the fiscal stability resulting in high rate of deficits and domestic debt, as well as inducing more inflationary pressure within the market-oriented economy. In view of the decreasing price of crude oil in the international market accompanied by lower revenue generation, the rising inflationary pressure has continued to serve as a major obstacle to ensuring sustainable growth in Nigeria. With the monetary policy being constrained in addressing this problem as a result of the prevailing exchange rate regimes which adversely affect the activities of the commercial banks, this gave fiscal policy the opportunity to carry the main task of macroeconomic stabilization in Nigeria. It is in view of this background that this paper is aimed at evaluating the effects of fiscal operations on macroeconomic growth in Nigeria. Enormous literature related to fiscal operations in both developed and developing countries are reviewed, and the trends of fiscal variables are also presented. The paper adopted a descriptive method and utilized both charts and table to show the trend of fiscal elements with the aim of determining the relationship among the variables. The paper concludes that fiscal operation is ineffective in providing the needed macroeconomic environment for sustainable growth. Therefore, there is need for government to reduce the size of its deficits, broaden the revenue base by increasing the contribution from non-oil sources, and synchronize both monetary and fiscal policies in order to ensure growth and maintained stability in the economy. Also, an effectively implemented fiscal policy programs could play a vital role in overcoming these instabilities on the economy by providing a suitable framework for a more stable and predictable budget. Nevertheless, mere quantitative implementation of fiscal programs will not change the impacts of these instabilities on the economy unless viable pro-active measures are taken to fight corruption and to strengthen transparency and accountability of fiscal management in the public sector.Contribution/ Originality: This study contributes in the existing literature by providing a better understanding on how fiscal operations affect the macroeconomic condition of the Nigerian economy using a descriptive analysis. The paper utilized a recent dataset (2010 base year) for more than 3 decades with the view to establishing reliable findings. INTRODUCTIONIn recent years, the growth and performance of key macroeconomic indicators in many developing countries has decelerated. The current recession and tightening of global financial conditions in addition to financial market volatility may lead to a decrease or reversals of capital inflows. Since the risk to capital flows can limit monetary policy in these countries, the choice of fiscal policy as a countercyclical tool becomes highly essen...

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“…Policy shocks are at peak conditions in Africa (Ocran 2011). The nature of these policy shocks and the attendant implications for household consumption in Africa remain dimly discerned.…”

Section: Introductionmentioning

confidence: 99%

Macroeconomic policy volatility and household consumption in Africa

2021

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Consequences of debilitated macroeconomic policies are unhealthy for household consumption in most African countries. With inflation, the market value of African household's disposable income is eroded, which leads to lower consumption bundle and subsequently, hardship. Despite the magnitude and significance of household final consumption expenditures in Africa, the cause-effect, evidence-based policy options of macroeconomic policy-induced household consumption remain underexplored and less understood. To establish a clear line of thought on the macroeconomic policy volatility-household consumption relations in Africa, we assigned numerical weights to the output elasticities of macroeconomic policy volatilities and household consumption relations in twenty (20) African countries using the panel structural vector auto-regressive (PSVAR) estimation technique. We took cognisance of idiosyncratic and standard structural shocks responses. We allowed thoroughly ranked cross-sectional variances of dynamic elasticities. Findings reveal that macroeconomic policy volatilities induce significant changes in household final consumption expenditure in Africa. Policy implications were discussed.

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Fiscal policy and economic growth in South Africa

Cited by 37 publications

References 33 publications

Fiscal policy, employment, and output in South Africa: An open economy analysis

Fiscal policy, employment, and output in South Africa: An open economy analysis

Fiscal Operations and Macroeconomic Growth: The Nigerian Experience

Macroeconomic policy volatility and household consumption in Africa

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