Affiliation:
1. Centre for the Study of the Economies of Africa, Abuja, Nigeria
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.
Publisher
National Library of Serbia
Subject
General Economics, Econometrics and Finance
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