On the fiscal deficit and economic growth in sub-Saharan Africa: A new evidence from system GMM
Atnafu Gebremeskel Sore,
Isubalew Daba Ayana,
Wondaferahu Mulugeta Demissie
Abstract:Using a two-step approach GMM, this study examines the short- and long-term effects of fiscal deficit on the economic growth of 42 Sub-Saharan African nations between 2011 and 2021. The World Development Index, the most reliable source, is where the panel data is taken from. Using the Levin-Lin-Chu and Hadri LM tests for unit root, it was determined that there is no risk of a random walk in the data. The study’s findings indicate that while the fiscal deficit has short-term, positive, and significant benefits … Show more
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