Victoria Masere
Midlands State University, Gweru, Zimbabwe

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Impact of Fiscal Indiscipline on External Debt in Sub Saharan Africa Talent Kondo; Victoria Masere; Pretty Moyo
Journal of Governance and Accountability Studies Vol. 6 No. 2 (2026): July
Publisher : Goodwood Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35912/jgas.v6i2.2813

Abstract

Purpose: This study examines the impact of fiscal indiscipline on external debt in Sub-Saharan Africa (SSA). Methodology: The study employs panel data analysis using a Random Effects Model (REM), covering the period from September 2009 to December 2020. Results: The findings reveal a negative relationship between primary fiscal balances and external debt. Fiscal deficits increase external debt accumulation, whereas fiscal surpluses contribute to its reduction. Conclusions: Fiscal indiscipline contributes to external debt accumulation in SSA. Lower primary fiscal balances, particularly persistent deficits, are associated with higher external debt levels, highlighting the importance of fiscal discipline in maintaining debt sustainability. Limitations: The study is limited by data availability during the observed period, and potential data quality issues may affect the reliability and generalizability of the findings. Contributions: This study provides empirical support for fiscal discipline and debt sustainability theories by demonstrating the relationship between primary fiscal balances and external debt accumulation. It extends theoretical understanding of how fiscal imbalances influence external indebtedness in developing economies, particularly SSA. Novelty: This study addresses a gap in the literature by examining fiscal indiscipline as a determinant of external debt in SSA. It offers region-specific empirical evidence and practical recommendations for balancing government revenues and expenditures, strengthening fiscal management, promoting economic stability, and enhancing economic resilience in developing countries.
The Nexus between Government Spending and Agricultural Output: Evidence from Zimbabwe Talent Kondo; Simba Mustvangwa; Victoria Masere
Journal of Governance and Accountability Studies Vol. 5 No. 2 (2025): July
Publisher : Goodwood Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35912/jgas.v5i2.2738

Abstract

Purpose: This study aims to examine the relationship between government spending and agricultural output in Zimbabwe, while also evaluating the effects of macroeconomic variables such as inflation, carbon emissions, rainfall, population growth, and temperature on agricultural output. Methodology: The Autoregressive Distributed Lag (ARDL) model was employed using time-series data from 1980 to 2022. Data were sourced from the World Bank and the IMF. Diagnostic tests, including stationarity checks, cointegration analysis, and stability assessments (CUSUM and CUSUMSQ), were conducted to ensure the robustness of the model. Results: The findings reveal significant short- and long-run relationships between government spending and agricultural output. Government expenditure, rainfall, and population positively influenced agricultural productivity, whereas inflation and carbon emissions had a negative effect. The ARDL model explains 95% of the variation in agricultural output, indicating a strong model fit and predictive power. Conclusions: The Autoregressive Distributed Lag (ARDL) model demonstrated a positive relationship between government spending and agricultural output in both the short and long terms. Based on the results, the study concluded that sustained government support through subsidies, grants, and other resources has the potential to enhance agricultural productivity in Zimbabwe over time. Limitations: The study is limited by the availability and quality of historical data, which may constrain the precision of certain estimates. Contributions: This study extends Keynesian fiscal theory and Musgrave’s public finance theory by integrating recent perspectives on sustainable agricultural development and climate resilience, providing new insights into the relationship between government spending and agricultural productivity in developing economies.