THE QUALITY OF BUDGETARY INSTITUTIONS IN AFRICA: EXPLORING THE DRIVERS

Adedeji Adeniran, Mma Amara Ekeruche and Chimere O. Iheonu

Economic Annals, 2022, vol. 67, issue 232, 127 - 152

Abstract: This paper examines the economic and political determinants of the observed variations in the quality of budgetary institutions in 31 selected African countries from 2005 to 2017. The quality of budgetary institutions is measured using the World Bank’s Country Policy and Institution Assessment score. The empirical analysis utilises Ordinary Least Squares, two-stage least squares, two-step generalized method of moment, and the random effects probit and mixed effects models. The most significant and robust determinants of budgetary institution quality were found to be the level of external debt, foreign aid, the extent of control of corruption, and the level of voice and accountability. The results also reveal that foreign aid, control of corruption, and voice/accountability increase the probability of an improved quality of budgetary institutions. These findings resonate with the broader discussion on the role of political will and the need for the preferences of domestic actors to be aligned in order to deliver institutional reform in Africa.

Keywords: budgetary institution; crisis hypothesis; common pool problem; fiscal performance; Africa (search for similar items in EconPapers)
JEL-codes: C23 H61 P16 (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.ekof.bg.ac.rs/wp-content/uploads/2014/04/057.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:beo:journl:v:67:y:2022:i:232:p:127-152

Ordering information: This journal article can be ordered from
http://ea.ekof.bg.ac.rs/

Access Statistics for this article

Economic Annals is currently edited by Will Bartlett

More articles in Economic Annals from Faculty of Economics and Business, University of Belgrade Contact information at EDIRC.
Bibliographic data for series maintained by Goran Petrić ().