Fiscal Policy and Private Consumption in West Africa: The Moderating Role of Governance
- Innocent A. Ifelunini
- Funkakpo D. Aprare
- Adzugbele S. Agbutun
- Callister K. Obi
- ( paper pages. 33 - 56 )
Abstract
This study
investigates the impact of fiscal policy on private consumption in West Africa
as well as the moderating role of governance on the effect of fiscal policy on
household consumption and its direct effect on private consumption. The study
utilized the IV-FE estimator on data for 16 West African countries from 2000 to
2020. The results show that fiscal policy significantly increases household
consumption in West Africa, but its effect reduces marginally due to its
interaction with governance. Furthermore, governance moderates the effects of
fiscal policy on household consumption in West Africa. The interaction between
fiscal policy and governance negatively affects the fiscal policy variable
alone, with the interactive term being insignificant at all levels. The study
concluded by highlighting the importance of fiscal policy and governance in
shaping household consumption in West Africa.
Citation
Innocent A. Ifelunini, Funkakpo D. Aprare, Adzugbele S. Agbutun, Callister K. Obi.
2025.
"Fiscal Policy and Private Consumption in West Africa: The Moderating Role of Governance"
The Nigerian Journal of Economic and Social Studies,
67 (1): 33 - 56.
JEL Classification
E21, H30, H11
