The Revenue–Expenditure Nexus: The Experience of 13 African Countries |
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| Authors: | Yemane Wolde‐Rufael |
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| Affiliation: | 1. Equalities and Social Inclusion Team, London Borough of Camden, Judd Street, London WC1H 9JE, England. Tel.: 0044 020 7974 1997;2. Fax: 0044 020 7974 5947;3. e‐mail: yemane.wolde‐rufael@camden.gov.uk |
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| Abstract: | Abstract: The aim of this paper is to investigate the causal relationship between government revenue and government expenditure for 13 African countries within a multivariate framework using a modified version of the Granger causality test due to Toda and Yamamoto (1995) . The empirical evidence suggests that there was a bi‐directional causality running between expenditure and revenue for Mauritius, Swaziland and Zimbabwe; no causality in any direction for Botswana, Burundi and Rwanda; unidirectional causality running from revenue to expenditure for Ethiopia, Ghana, Kenya, Nigeria, Mali and Zambia; and a uni‐directional causality running from expenditure to revenue for Burkina Faso only. |
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