Public Financial Management and Fiscal Outcomes in Sub-Saharan African Heavily-Indebted Poor Countries
48 Pages Posted: 8 Oct 2008
Date Written: September 2008
This paper examines, in a formal econometric framework, the linkages between public financial management and fiscal outcomes in sub-Saharan African countries. Similar analyses have been done for Latin America, Europe, and the United States, but none in the context of low-income countries. Using public financial management indicators, as measured in two recent assessments related to the Heavily-Indebted Poor Countries Initiative, this study shows that improving public financial management leads to better fiscal outcomes, as measured by the overall fiscal balance and external debt levels, after controlling for other characteristics that might alter fiscal outcomes.
Keywords: Financial management, Sub-Saharan Africa, Heavily indebted poor countries, Fiscal sector, Public sector, Economic indicators, External debt, Economic models, Fiscal policy, Working Paper
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