Fiscal Policy in Selected African Countries: The CFA Franc Zone

Augustin Mbemba

Abstract


Empirical literature states over the last 10 years that fiscal policy in developing countries is pro-cyclical comparing to industrial countries where it is countercyclical or acyclical. Some researchers have questioned this assumption and they criticized that empirical literature ignored endogeneity problems related to developing countries. For instance, the critical issues such as growth, poverty reduction, and social peace are all undermined when public expenditures management and taxation system are weak, and when the fiscal deficit and public debt are not successfully managed. CFA Zone governments have to found out how to mobilize revenues and to wisely spend it on infrastructures, public goods, services, health care programs and education in order to reach their macroeconomic goals and to improve general welfare. CFA franc Zone countries as many Sub-Saharan African economies are regularly characterized by a broad range of political and economical instabilities that prevent them to implement efficient fiscal and monetary policies. To settle this issue this paper investigates fiscal policy of selected African countries named CFA Zone Countries, and how they attempt to respond to the global financial crisis.


Full Text: PDF DOI: 10.5539/ijef.v3n2p101

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Economics and Finance  ISSN  1916-971X (Print) ISSN  1916-9728 (Online)

Copyright © Canadian Center of Science and Education

To make sure that you can receive messages from us, please add the 'ccsenet.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.