Public Financial Management and Fiscal Outcomes in Sub-Saharan African Heavily-Indebted Poor Countries
IMF Working Papers, September 1, 2008
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- Public Financial Management and Fiscal Outcomes in Sub-Saharan African Heavily-Indebted Poor Countries
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Bibliographic details
- Authors: Ezequiel Cabezon, Tej Prakash
- Published: September 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451870756.001
Summary
- This paper examines, in a formal econometric framework, the linkages between public financial management and fiscal outcomes in sub-Saharan African countries.
- Using public financial management indicators, as measured in two recent assessments related to the Heavily-Indebted Poor Countries Initiative, the study shows that improving public financial management leads to better fiscal outcomes.
- Fiscal outcomes are measured by the overall fiscal balance and external debt levels, after controlling for other characteristics that might alter fiscal outcomes.
- The analysis fills a gap: similar analyses have been done for Latin America, Europe, and the United States, but none in the context of low-income countries.
Scope, data, and methods
- Geographic focus: sub-Saharan African Heavily-Indebted Poor Countries (HIPC country).
- Methodology: formal econometric framework using public financial management (PFM) indicators from two HIPC-related assessments.
- Outcome variables analyzed:
- Overall fiscal balance
- External debt levels
- Controls: other characteristics that might alter fiscal outcomes (not specified in the landing page content).
Key findings
- Improving public financial management leads to better fiscal outcomes, as measured by:
- Overall fiscal balance
- External debt levels
Subject areas and keywords
- Subject: Budget execution and treasury management; Budget planning and preparation; Expenditure; Fiscal stance; Public financial management (PFM)
- Keywords: HIPC country; PFM budget execution; PFM indicator; PFM reform; PFM system; term PFM; WP