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Can Statistical Capacity Building Help Reduce Procyclical Fiscal Policy in Developing Countries?
Author:
Mr. Sampawende J Tapsoba
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Mr. Robert C York
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Neree C.G.M. Noumon
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Series:
IMF Working Papers
Volume/Issue:
Volume 2016: Issue 209
Language:
English
Publication Date:
08 Nov 2016
DOI:
https://doi.org/10.5089/9781475552003.001
ISBN:
9781475552003
ISSN:
1018-5941
Pages:
32
Keywords:
WP; SCB index; government spending; dependent variable; index SCB; standard deviation
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund