Revenue and expenditure nexus: A case study of ECOWAS

Arbeitspapier

This paper aims to assess the relationship among fiscal variables (net lending, government expenditure and revenue) and economic growth in Sub-Saharan African countries. Using yearly data for the period between 1980 and 2011 in 15 ECOWAS countries, a weak long-run relationship between government expenditure and revenue emerge, but only in the case of WAMZ countries. Granger causality analysis showed mixed results for WAEMU countries, while for four out of six WAMZ countries (Gambia, Liberia, Nigeria, and Sierra Leone) the tax-and-spend hypothesis holds, since government revenue would drive the expenditure. Finally, in the last three decades, cyclical component of economic growth has reduced its fluctuations, both for WAEMU and WAMZ member States.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Economics Discussion Papers ; No. 2012-57

Classification and Topics

• Classification: Wirtschaft ; Fiscal Policy ; International Monetary Arrangements and Institutions ; History of Economic Thought: Macroeconomics ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
• Subject: ECOWAS ; Sub-Saharan Africa ; economic growth ; government expenditure ; government revenue ; panel

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Magazzino, Cosimo
• Event: Veröffentlichung
• (who): Kiel Institute for the World Economy (IfW)
• (where): Kiel
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/66141
• Last update: 10.03.2025, 11:44 AM CET