Fiscal deficit in sub-saharan Africa: A new intuition from the institution and political drivers.

ABSTRACT: Motivated by the growing fiscal deficits in sub-Saharan Africa, this study examines fiscal deficit's economic, political, and institutional drivers using a panel of twenty-three sub-Saharan African countries. Panel spatial consistent correlation, dynamic fixed effects autoregressive distributed lag, and feasible generalised ordinary least squares were used as the estimation techniques. Our findings reveal that while per capita income, trade openness, population, and religious tension increase the size of fiscal deficit, bureaucracy quality, government stability, Law and order, and military in politics reduce the extent of fiscal deficit. However, corruption control, democratic accountability, and internal conflict have weaker statistical evidence. Furthermore, the study established evidenc

SUBMITTER: Abanikanda EO 

PROVIDER: S-EPMC10490844 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature