Reducing the Increasing Effect of Fiscal Expenditure on Government Debts: Does Financial Sector Transparency Matter?

IF 2.2 Q2 POLITICAL SCIENCE

Politics & Policy Pub Date : 2025-11-05 DOI:10.1111/polp.70080

Baah A. Kusi, Emmanuel Senanu Mekpor, Elikplimi K. Agbloyor, Simplice A. Asongu

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引用次数: 0

Abstract

In this study, we attempt to examine how transparency in the financial sector (financial sector transparency) moderates the increasing effect of fiscal expenditure on government debts using 23 African economies over a 16-year period. The study employs two-step dynamic GMM panel models with additional controls for year and country effects. The results show that (i) FST and fiscal expenditure both increase government debts, but the combined effect of these two offers a synergetic-reducing effect on government debts, (ii) economies with transparent financial sector systems are able to effectively suppress the increasing effect of fiscal expenditure on government debts, and (iii) the increasing effect of expenditure is evident in both transparent and opaque financial sector economies, though the increasing effect of fiscal expenditure is lower in transparent financial sector systems in Africa. These results highlight the important but unexplored government debt-reducing effect of FST through fiscal expenditure, implying that policymakers can rely on FST to tame the increasing effect of fiscal expenditure on government debts while enacting laws and policies to expand the depth and coverage of FST to harness the government debt-reducing effect of FST through fiscal expenditure.

Adegboye, Alex, Kofo Adegboye, Uwalomwa Uwuigbe, Stephen Ojeka, and Eyitemi Fasanu. 2023. “Taxation, Democracy, and Inequality in Sub-Saharan Africa: Relevant Linkages for Sustainable Development Goals.” Politics & Policy 51(4): 696–722. https://doi.org/10.1111/polp.12547.

Asongu, Simplice, and Nicholas M. Odhiambo. 2023. “The Effect of Inequality on Poverty and Severity of Poverty in Sub-Saharan Africa: The Role of Financial Development Institutions.” Politics & Policy 51(5): 898–918. https://doi.org/10.1111/polp.12558.

Byaro, Mwoya, Nicholaus Ngowi, and Anicet Rwezaula. 2024. “Do higher government spending, financial development, and trade reduce income inequality in low-income countries? A Bayesian perspective.” Politics & Policy 52(3): 500-519. https://doi.org/10.1111/polp.12600.

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减少财政支出对政府债务的增加效应：金融部门透明度重要吗？

在这项研究中，我们试图研究金融部门的透明度（金融部门透明度）如何调节财政支出对政府债务的影响，使用23个非洲经济体在16年期间。该研究采用两步动态GMM面板模型，并对年份和国家影响进行了额外控制。结果表明：(1)财政税和财政支出都增加了政府债务，但两者的综合效应对政府债务产生了协同减少效应；(2)具有透明金融部门制度的经济体能够有效抑制财政支出对政府债务的增加效应；(3)在透明和不透明的金融部门经济体中，支出的增加效应都很明显。尽管财政支出的增加效应在非洲透明的金融部门制度中较低。这些结果突出了FST通过财政支出减少政府债务的重要作用，但尚未被探索，这意味着决策者可以依靠FST来抑制财政支出对政府债务的日益增长的影响，同时通过制定法律和政策来扩大FST的深度和覆盖面，以利用FST通过财政支出减少政府债务的作用。相关文章阿德博耶，亚历克斯，阿德博耶，乌瓦洛姆瓦·乌维格贝，斯蒂芬·奥耶卡和埃伊特米·法萨努。2023。《撒哈拉以南非洲的税收、民主和不平等：可持续发展目标的相关联系》。政治与政策51(4):696-722. https://doi.org/10.1111/polp.12547。Asongu， simice和Nicholas M. Odhiambo. 2023。《撒哈拉以南非洲不平等对贫困和贫困严重程度的影响：金融发展机构的作用》。政治与政策51(5):898-918. https://doi.org/10.1111/polp.12558。Byaro, Mwoya， Nicholaus Ngowi和Anicet Rwezaula， 2024。“增加政府支出、金融发展和贸易能减少低收入国家的收入不平等吗？”贝叶斯的观点。”政治与政策52(3):500-519。https://doi.org/10.1111/polp.12600。

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来源期刊

Politics & Policy POLITICAL SCIENCE-

CiteScore

2.50

自引率

23.10%

发文量