Fiscal Policy and Growth: An Empirical Evaluation in CFA Franc Zone

Ndjokou, Mondjeli Mwa

doi:10.5539/ibr.v6n7p131

Cited by 6 publications

(7 citation statements)

References 32 publications

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“…Meanwhile, Ndjokou (2013) assessed the link between fiscal policy and growth. To this end, the author investigated the influence of the composition of the budget on economic growth in nine countries of the CFA Franc zone over the period of 1990-2010.…”

Section: Empirical Evidence and Research Methodologymentioning

confidence: 99%

“…The analysis of previous studies revealed that there is a lack of research in government spending nexus economic growth in the EU-28 countries. Most of the studies focused either on specific, mostly developing country (Tang, 2009; Hamzah, 2011; Loto, 2011; Taiwo and Abayomi, 2011; Zamanian et al , 2012; Chude and Chude, 2013; Ndjokou, 2013; Gisore et al , 2014; Olulu et al , 2014), or performed analysis on large-scale covering at least 30 developed and developing countries (Wu et al , 2010). Meanwhile, the other researchers, even concentrating on the EU problems, more investigated government debt impact on economic growth (Drisaki, 2013; Spilioti and Vamvoukas, 2015) or EU budget allocation problems, rather than paid attention on government spending and economic growth.…”

Section: Empirical Evidence and Research Methodologymentioning

confidence: 99%

See 1 more Smart Citation

Government expenditure and economic growth in the European Union countries

Dudzevičiūtė

Šimelytė

Liučvaitienė

2018

IJSE

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Purpose The purpose of this paper is to provide more reliable estimates of the relationship between government spending and economic growth in the European Union (EU) during the period of 1995-2015. Design/methodology/approach The methodology consisted of several different stages. In the first stage for an assessment of dynamics of government spending and economic growth indicators over two decades, descriptive statistics analysis was employed. Correlation analysis helped to identify the relationships between government expenditures (GEs) and economic growth. In the third stage, for modeling the relationship and the estimation of causality between GE and economic growth, Granger causality testing was applied. Findings The research indicated that eight EU countries have a significant relationship between government spending and economic growth. Research limitations/implications This study has been bounded by general GE and economic growth only. The breakdowns of general GE on the basis of the activities they support have not been considered in this paper, which is the main limitation of the research. Despite the limitation, it might be maintained that the research highlights key relationships in the EU countries. Originality/value These insights might be useful for policy makers. In countries with unidirectional causality running from GE to economic growth, the government can employ expenditure as a factor for growth. The governments should ensure that resources are properly managed and efficiently allocated to accelerate economic growth in the countries with unidirectional causality from GDP to GE.

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Section: Empirical Evidence and Research Methodologymentioning

confidence: 99%

Section: Empirical Evidence and Research Methodologymentioning

confidence: 99%

Government expenditure and economic growth in the European Union countries

Dudzevičiūtė

Šimelytė

Liučvaitienė

2018

IJSE

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“…Ndjokou [25] examined the interaction between fiscal policy and economic growth in nine West Africa CFA franc Zone countries using panel data. Specifically, the study sought to analyze the influence of public expenditures and revenues in addition to the budget composition of these economies on growth.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

Effect of Tax and Debt Financed Government Expenditure on Economic Growth in Kenya

Mukui

Onjala

Awiti

2020

JEMT

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This study aims at analyzing the effect of tax and debt-financed government expenditure on economic growth in Kenya using time series data from 1980-2014. Vector Error Correction Model (VECM) was used to analyze the data. The empirical findings showed that public investment expenditure financed by issuing debt has positive effect on economic growth. The results also indicated that financing government consumption expenditure using debt has negative effect on economic growth. With regards to tax revenue, the results indicated that tax financed public consumption spending affects economic growth negatively. Moreover, the results showed financing government investment expenditure using tax revenue promotes economic growth. Based on the findings, this study therefore recommends fiscal authorities in to use borrowing to finance investment expenditure as opposed financing consumption spending. Additionally, given the adverse effects of debt-accumulation on growth performance, policy makers should focus more on domestic revenue mobilization to finance government expenditures.

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“…When a budget shortfall occurs, broad arrays of strategies and policies are considered to fight budget deficits (Ndjokou, 2013). An examination of these strategies within the context of the oil crisis of 2014 provides pivotal information for the reader and the literature.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Second, revenue-increasing strategies aim to grow the economy by implementing policies that enhance budget revenues without severely affecting public spending or creating market hostility (Ndjokou, 2013;Garcia & Hé nin, 1999). Implementing revenue-increasing strategies during economic recessions can be extremely challenging.…”

Section: Literature Reviewmentioning

confidence: 99%

Budget Policies During and After the Oil Crisis of 2014: Comparative Analysis of Saudi Arabia, UAE, and Kuwait

Alotaibi¹

2019

IBR

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This paper explored how some Gulf Cooperation Council (GCC) countries employed budget policies to manage their budget deficits in the fiscal years between 2014 and 2018. Empirically, this study attempted to summarize and critically analyze several approaches of economic strategies that countries utilized such as sovereign wealth fund, revenue-increasing policies, and expenditure-reducing policies in response to budget deficits during and after the oil crisis of 2014. Secondary data were gathered from the ministry of finance reports as well as various official documents covering three different GCC countries, which are Saudi Arabia, UAE and Kuwait. The findings of this study showed distinct patterns in a three-country approach to manage their budget deficits. Saudi Arabia and UAE implemented a comparatively more balanced approach between increasing revenues and reducing expenditure. On the other hand, Kuwait focused on reducing their budget expenditures and adopted policies that promoted across the board cuts and is relatively relying more on oil revenues to balance the budget.

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Fiscal Policy and Growth: An Empirical Evaluation in CFA Franc Zone

Cited by 6 publications

References 32 publications

Government expenditure and economic growth in the European Union countries

Government expenditure and economic growth in the European Union countries

Effect of Tax and Debt Financed Government Expenditure on Economic Growth in Kenya

Budget Policies During and After the Oil Crisis of 2014: Comparative Analysis of Saudi Arabia, UAE, and Kuwait

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