Inclusive growth in Africa: Do fiscal measures matter?
AbstractIn recent times, Africa has experienced remarkable economic growth; nonetheless, this advancement remains far from being considered inclusive, given the persistently high levels of poverty and income inequality across the continent. To this end, this study investigates the role of fiscal pol...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-10-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2023.2273604 |
| _version_ | 1797641147531657216 |
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| author | Suleiman O. Mamman Kazi Sohag Attahir B. Abubakar |
| author_facet | Suleiman O. Mamman Kazi Sohag Attahir B. Abubakar |
| author_sort | Suleiman O. Mamman |
| collection | DOAJ |
| description | AbstractIn recent times, Africa has experienced remarkable economic growth; nonetheless, this advancement remains far from being considered inclusive, given the persistently high levels of poverty and income inequality across the continent. To this end, this study investigates the role of fiscal policy measures on inclusive growth using absolute and relative pro-poor measures of growth. The study utilizes panel data from 48 African countries spanning the period 1996 to 2020 and employs the Panel System Generalized Method of Moments (GMM) technique for analysis. Estimation results reveal a concerning trend where public debt service exacerbates both poverty and income inequality, underscoring the adverse consequences of mounting public debt pressures in the region. Interestingly, while government expenditure reduces inequality and worsens poverty, an increase in taxation reduces poverty but worsens income inequality. Further, an increase in taxation negatively affects the income shares of the bottom and middle-income groups while the top-income groups benefit. The findings of this study have significant policy implications for improving inclusive growth in the continent. |
| first_indexed | 2024-03-11T13:41:23Z |
| format | Article |
| id | doaj.art-6ea0072794404897824e43827ee49b4b |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-03-11T13:41:23Z |
| publishDate | 2023-10-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-6ea0072794404897824e43827ee49b4b2023-11-02T12:00:25ZengTaylor & Francis GroupCogent Economics & Finance2332-20392023-10-0111210.1080/23322039.2023.2273604Inclusive growth in Africa: Do fiscal measures matter?Suleiman O. Mamman0Kazi Sohag1Attahir B. Abubakar2Graduate School of Economics and Management, Ural Federal University, Yekaterinburg, RussiaGraduate School of Economics and Management, Ural Federal University, Yekaterinburg, RussiaSchool of Business and Creative Industries, University of the West of Scotland, UKAbstractIn recent times, Africa has experienced remarkable economic growth; nonetheless, this advancement remains far from being considered inclusive, given the persistently high levels of poverty and income inequality across the continent. To this end, this study investigates the role of fiscal policy measures on inclusive growth using absolute and relative pro-poor measures of growth. The study utilizes panel data from 48 African countries spanning the period 1996 to 2020 and employs the Panel System Generalized Method of Moments (GMM) technique for analysis. Estimation results reveal a concerning trend where public debt service exacerbates both poverty and income inequality, underscoring the adverse consequences of mounting public debt pressures in the region. Interestingly, while government expenditure reduces inequality and worsens poverty, an increase in taxation reduces poverty but worsens income inequality. Further, an increase in taxation negatively affects the income shares of the bottom and middle-income groups while the top-income groups benefit. The findings of this study have significant policy implications for improving inclusive growth in the continent.https://www.tandfonline.com/doi/10.1080/23322039.2023.2273604inclusive growthpovertyincome inequalitydebt servicegovernment expendituretaxation |
| spellingShingle | Suleiman O. Mamman Kazi Sohag Attahir B. Abubakar Inclusive growth in Africa: Do fiscal measures matter? Cogent Economics & Finance inclusive growth poverty income inequality debt service government expenditure taxation |
| title | Inclusive growth in Africa: Do fiscal measures matter? |
| title_full | Inclusive growth in Africa: Do fiscal measures matter? |
| title_fullStr | Inclusive growth in Africa: Do fiscal measures matter? |
| title_full_unstemmed | Inclusive growth in Africa: Do fiscal measures matter? |
| title_short | Inclusive growth in Africa: Do fiscal measures matter? |
| title_sort | inclusive growth in africa do fiscal measures matter |
| topic | inclusive growth poverty income inequality debt service government expenditure taxation |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2023.2273604 |
| work_keys_str_mv | AT suleimanomamman inclusivegrowthinafricadofiscalmeasuresmatter AT kazisohag inclusivegrowthinafricadofiscalmeasuresmatter AT attahirbabubakar inclusivegrowthinafricadofiscalmeasuresmatter |