IMF programme duration and fiscal policy: a path to debt sustainability in Africa

Baah Aye Kusi (), Joseph Atta Junior Darkwa (), Peter Kobati Ayiakwo (), Joseph Ato Forson (), Michael Awuku () and Moses Nanyun Nankpan ()
Additional contact information
Baah Aye Kusi: University of Ghana Business School
Joseph Atta Junior Darkwa: University of Education
Peter Kobati Ayiakwo: University of Education
Joseph Ato Forson: University of Education
Michael Awuku: University of Education
Moses Nanyun Nankpan: Dongbei University of Finance and Economics

SN Business & Economics, 2025, vol. 5, issue 5, 1-23

Abstract: Abstract In this study, we explore how the duration and presence of IMF programmes modify the relationship between fiscal activities (revenue and expenditure) and government debt reduction across African nations. Focusing on 20 African economies that subscribed to the IMF stabilisation programme between 2004 and 2020 and using the dynamic GMM estimation approach, we report that IMF programme arrangements and duration reduce government debts. Furthermore, we also report that while the effects of revenue and expenditure on government debts are decreasing, these effects are higher and lower during IMF policy programme periods and duration in Africa. These results show that IMF programmes speed up the reduction of revenue on debts while lowering the increasing effect of expenditure on government debts in Africa. Policymakers and governments can rely on IMF policy programmes to reinforce the desirable effect of fiscal activities in reducing government debts and improving debt sustainability in Africa.

Keywords: IMF programmes; Public finance; Debt sustainability; Fiscal policy; Africa (search for similar items in EconPapers)
JEL-codes: C58 D73 E62 H50 H60 (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s43546-025-00818-7 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:snbeco:v:5:y:2025:i:5:d:10.1007_s43546-025-00818-7

Ordering information: This journal article can be ordered from
https://www.springer.com/journal/43546

DOI: 10.1007/s43546-025-00818-7

Access Statistics for this article

SN Business & Economics is currently edited by Gino D'Oca

More articles in SN Business & Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().