The Effects of Regulatory Quality on the Pro-Cyclicality of Fiscal Policy in Countries in the Central African Economic and Monetary Community (CA EMC)

Autor:	Jean Roméo Félix Kouika Bouanza, Ted Cléophane Ngassa, Mathias Marie Adrien Ndinga
Rok vydání:	2018
Předmět:	State (polity) Order (exchange) media_common.quotation_subject Business cycle Economics Quality (business) Monetary economics Function (engineering) Institutional quality media_common Panel data Fiscal policy
Zdroj:	Modern Economy. :1228-1246
ISSN:	2152-7261 2152-7245
DOI:	10.4236/me.2018.97080
Popis:	This article aims to analyze the effects of the regulatory quality on fiscal pro-cyclicality in CAEMC member countries based on the annual panel data for the years 1996 to 2016. To achieve that, we used, on the one hand, the fiscal policy reaction function (Taylor, 2000) as well as institutional quality, and on the other hand, the system-generalized method of moments (system GMM) to empirically understand the effects of the regulatory quality on fiscal pro-cyclicality in CAEMC member countries. Our findings show that the current state of regulatory quality in CAEMC countries promotes the pro-cyclicality of the fiscal policy in this sub-region. In addition, these findings show that the effect of the current state of regulatory quality on fiscal pro-cyclicality is more significant when the regulatory quality is linked to the economic cycle. It is therefore necessary to bring about profound institutional reform in the CAEMC countries in order to redirect the fiscal budget towards counter-cyclicality.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::eee1924df0fd873c4797097e684a699c https://doi.org/10.4236/me.2018.97080 Zobrazit plný text záznamu