Gabon: Selected Issues

International Monetary Fund

No 2019/390, IMF Staff Country Reports from International Monetary Fund

Abstract: This Selected Issues on Gabon seeks to quantify the impact of governance reforms on growth. It uses a dynamic stochastic general equilibrium (DSGE) model calibrated to Gabon to simulate the potential benefits from governance and anti-corruption reforms to growth and public debt. Vulnerabilities in the fiscal institutional framework constrain effective revenue collection and reduce the efficiency of public spending, thus limiting fiscal space for priority pro-growth spending. The results of a DSGE model for Gabon suggest that macro-fiscal gains from governance reforms could be substantial. The potential additional growth can range from 0.8 to 1.5 percent per year over the next 10 years, and debt can decline by 1.0 to 2.0 percent of non-oil gross domestic product per year over the same period. It is urgent to improve governance and curb corruption to boost domestic revenue, enhance public finance management and the quality of spending, and improve the business environment to promote private investment and facilitate private sector activity.

Keywords: ISCR; CR; Gabon; spending; governance; revenue; governance reform; reform package; tackling governance weakness; social spending needs; education spending; Gabon Émergent; public education outcome; diversification effort; Health care spending; Corruption; Global; Sub-Saharan Africa; Africa (search for similar items in EconPapers)
Pages: 65
Date: 2019-12-23
New Economics Papers: this item is included in nep-mac
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