Budgetary Convergence in the WEAMU: Adjustment Through Revenue or Expenditure?

June 1, 2000

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Jean-Claude Nachega, and Ousmane Dore. Budgetary Convergence in the WEAMU: Adjustment Through Revenue or Expenditure?, (USA: International Monetary Fund, 2000) accessed November 8, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

A regional convergence pact adopted recently by the Conference of Heads of States of WAEMU provides a framework for fiscal convergence similar to the European Union’s Maastricht Treaty. Using bivariate co-integration and error-correction models, this paper investigates the relationship between revenue and expenditure in seven member countries to determine the feasibility and nature of the policy adjustment required to meet the new convergence criteria. The results indicate that, in the long run, there is causality running from revenue to expenditure in Burkina Faso and Senegal, from expenditure to revenue in Benin and Togo, a bidirectional causality in Côte d’Ivoire and Mali, and no causality in Niger.

Subject: Budget planning and preparation, Expenditure, Fiscal policy, Fiscal stance, Government debt management, Public financial management (PFM)

Keywords: Budget planning and preparation, Co-integration, Convergence, Error-correction, Expenditure data, Expenditure decision, Expenditure granger, Expenditure move, Expenditure objective, Fiscal stance, Government debt management, Granger causality, Granger cause expenditure, Outlays ECM, Revenue, Time series, West Africa, WP

Publication Details

Pages:

31
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2000/109
Stock No:

WPIEA1092000
ISBN:

9781451853209
ISSN:

1018-5941

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