Impact of output gap, COVID-19, and governance quality on fiscal space in Sub-Saharan Africa

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dc.contributor.authorKatuka, Blessing
dc.contributor.authorMudzingiri, Calvin
dc.date.accessioned2023-10-24T14:04:33Z
dc.date.available2023-10-24T14:04:33Z
dc.date.issued2023
dc.description.abstractThis study examined the determinants of fiscal space within the Sub-Saharan Africa (SSA) region, utilising a panel of 33 countries from 2005 to 2021. The paper applied the panel threshold, difference, and system generalised method of moments (GMM) regression techniques. The empirical results found evidence of constrained fiscal space and poor governance in Central, Western, and Eastern Africa. The results further unveiled that an enhancement in governance indicators beyond −0.23 for the governance index, −0.15 for control of corruption, −0.98 for the rule of law, −0.37 for regulatory quality, −0.15 for voice and accountability, +0.36 for political stability, and −0.61 for government effectiveness, respectively, increase fiscal space. Moreover, the study concluded that the output gap, COVID-19, trade openness, and economic growth impact fiscal space availability in Central, Western, Southern, and Eastern Africa. The paper investigated whether the COVID-19 pandemic and governance quality significantly influenced fiscal space within SSA. We strongly recommend enhancement in all facets of governance through comprehensive restructuring of governance policies across all SSA countries. Another key recommendation is fostering trade openness to expand tax revenue generation and broaden the tax base, thereby providing the continent with greater fiscal space and improved resilience to unforeseen shocks.en_ZA
dc.description.versionPublisher's versionen_ZA
dc.identifier.citationKatuka, B., & Mudzingiri, C. (2023). Impact of output gap, COVID-19, and governance quality on fiscal space in Sub-Saharan Africa. Economies, 11(10), 256. https://doi.org/10.3390/economies11100256en_ZA
dc.identifier.issn2227-7099 (online)
dc.identifier.urihttp://hdl.handle.net/11660/12318
dc.identifier.urihttps://doi.org/10.3390/economies11100256
dc.language.isoenen_ZA
dc.publisherMDPIen_ZA
dc.rights.holderAuthor(s)en_ZA
dc.rights.licensehttps://www.mdpi.com/about/openaccessen_ZA
dc.subjectDe facto fiscal spaceen_ZA
dc.subjectoutput gapen_ZA
dc.subjectgovernance qualityen_ZA
dc.subjectCOVID-19 pandemicen_ZA
dc.subjectpanel threshold regressionen_ZA
dc.subjectHamilton regression filteren_ZA
dc.titleImpact of output gap, COVID-19, and governance quality on fiscal space in Sub-Saharan Africaen_ZA
dc.typeArticleen_ZA
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