NEW PUBLICATION: We revisit the relationship between fiscal tightening and economic growth within the Sub-Saharan African context, employing a local projection framework augmented with instruments. In contrast to the conclusions reached by Badru et al. (2025), our findings highlights that fiscal consolidation triggers the growth-depressing effect, independent of the estimation technique used. This contractionary impact intensifies under heightened global uncertainty whether gauged through geopolitical tension metrics or economic policy unpredictability measures.
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Tao, M., Saadaoui, J., & Silva, E. (2025). How Robust Is the Link Between Growth and Fiscal Consolidations Under Global Uncertainties? A Reassessment for Sub-Saharan Africa. Finance Research Letters, 84, 107773, Open Access thanks to a grant from the University of Auckland.
