Can Statistical Capacity Building Help Reduce Procyclical Fiscal Policy in Developing Countries?

33 Pages Posted: 9 Dec 2016

See all articles by Codjo Neree Noumon

Codjo Neree Noumon

International Monetary Fund (IMF)

Sampawende Tapsoba

International Monetary Fund (IMF)

Robert York

International Monetary Fund (IMF)

Date Written: November 2016

Abstract

Few papers have attempted to assess the role of 'capacity,' especially in the area of macroeconomic statistics. Consequently, we make an attempt to advance this literature through the construction of a 'statistical capacity building index,' and then test its explanatory power on the cyclicality of government spending. Using panel data from 62 developing countries, we find evidence that improvements in this index are associated with less procyclicality of government spending over the period 1990-2012; with the significance of this relationship dependent upon the quality of administrative and technical capacity of budgetary institutions.

Keywords: Statistics, Fiscal policy, Government expenditures, Budgets, Budgeting, Developing countries, Business cycles, Fiscal policy, Procyclicality, Capacity building, Budget institutions, Developing countries.

Suggested Citation

Noumon, Codjo Neree and Tapsoba, Sampawende and York, Robert, Can Statistical Capacity Building Help Reduce Procyclical Fiscal Policy in Developing Countries? (November 2016). IMF Working Paper No. 16/209. Available at SSRN: https://ssrn.com/abstract=2882644

Codjo Neree Noumon

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Sampawende Tapsoba (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Robert York

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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