The Interaction Between Fiscal Decentralization and Institutional Quality Could Serve as an Alternative to Reducing Public Debt in Central Africa

Nzomo Tcheunta Joseph Chrétien; Wandji Georges; Kenfack Martial Aimé; Fantcho Joseph Emmanuel

doi:doi:10.11648/j.jwer.20241301.13

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The Interaction Between Fiscal Decentralization and Institutional Quality Could Serve as an Alternative to Reducing Public Debt in Central Africa

Nzomo Tcheunta Joseph Chrétien^*

, Wandji Georges, Kenfack Martial Aimé, Fantcho Joseph Emmanuel

Published in Journal of World Economic Research (Volume 13, Issue 1)

Received: 10 April 2024 Accepted: 30 April 2024 Published: 24 May 2024

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Abstract

The Central Africa region is encountering significant economic challenges, particularly regarding public debt management. High public debt in Central Africa may hinder governments' ability to invest in development projects and deliver essential services to the population. Therefore, it is important to explore how the interplay between fiscal decentralization and institutional quality can provide an effective solution for reducing public debt. Futhermore, Central African countries face significant difficulties in managing public debt, often exacerbated by corruption. This study examines whether the quality of institutions is the channel through which fiscal decentralization leads to the reduction of public debt in Central Africa. This study analyzes the impact of fiscal decentralization on public debt in Central Africa, with emphasis on the role of corruption. Using various econometric methods, including fixed effects, Driscoll and Kraay, the analysis reveals that fiscal decentralization helps reduce public debt in Central Africa. However, the positive impact of fiscal decentralization on public debt depends on a lower level of corruption. These results are robust as the use of GMM in system and the 2SLS approach of Lewbel have led to the same conclusions. These conclusions highlight the importance of the quality of institutions in the process of improving budgetary discipline, with a view to strengthening the beneficial effects of fiscal decentralization on public debt. This study suggests that anti-corruption institutions in Central Africa constitute the keystone for promoting fiscal decentralization and reducing public debt effectively.

Published in	Journal of World Economic Research (Volume 13, Issue 1)
DOI	10.11648/j.jwer.20241301.13
Page(s)	24-32
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Fiscal Decentralization, Public Debt, Quality of Institutions

References

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APA Style

Chrétien, N. T. J., Georges, W., Aimé, K. M., Emmanuel, F. J. (2024). The Interaction Between Fiscal Decentralization and Institutional Quality Could Serve as an Alternative to Reducing Public Debt in Central Africa. Journal of World Economic Research, 13(1), 24-32. https://doi.org/10.11648/j.jwer.20241301.13

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ACS Style

Chrétien, N. T. J.; Georges, W.; Aimé, K. M.; Emmanuel, F. J. The Interaction Between Fiscal Decentralization and Institutional Quality Could Serve as an Alternative to Reducing Public Debt in Central Africa. J. World Econ. Res. 2024, 13(1), 24-32. doi: 10.11648/j.jwer.20241301.13

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AMA Style

Chrétien NTJ, Georges W, Aimé KM, Emmanuel FJ. The Interaction Between Fiscal Decentralization and Institutional Quality Could Serve as an Alternative to Reducing Public Debt in Central Africa. J World Econ Res. 2024;13(1):24-32. doi: 10.11648/j.jwer.20241301.13

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@article{10.11648/j.jwer.20241301.13,
  author = {Nzomo Tcheunta Joseph Chrétien and Wandji Georges and Kenfack Martial Aimé and Fantcho Joseph Emmanuel},
  title = {The Interaction Between Fiscal Decentralization and Institutional Quality Could Serve as an Alternative to Reducing Public Debt in Central Africa
},
  journal = {Journal of World Economic Research},
  volume = {13},
  number = {1},
  pages = {24-32},
  doi = {10.11648/j.jwer.20241301.13},
  url = {https://doi.org/10.11648/j.jwer.20241301.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20241301.13},
  abstract = {The Central Africa region is encountering significant economic challenges, particularly regarding public debt management. High public debt in Central Africa may hinder governments' ability to invest in development projects and deliver essential services to the population. Therefore, it is important to explore how the interplay between fiscal decentralization and institutional quality can provide an effective solution for reducing public debt. Futhermore, Central African countries face significant difficulties in managing public debt, often exacerbated by corruption. This study examines whether the quality of institutions is the channel through which fiscal decentralization leads to the reduction of public debt in Central Africa. This study analyzes the impact of fiscal decentralization on public debt in Central Africa, with emphasis on the role of corruption. Using various econometric methods, including fixed effects, Driscoll and Kraay, the analysis reveals that fiscal decentralization helps reduce public debt in Central Africa. However, the positive impact of fiscal decentralization on public debt depends on a lower level of corruption. These results are robust as the use of GMM in system and the 2SLS approach of Lewbel have led to the same conclusions. These conclusions highlight the importance of the quality of institutions in the process of improving budgetary discipline, with a view to strengthening the beneficial effects of fiscal decentralization on public debt. This study suggests that anti-corruption institutions in Central Africa constitute the keystone for promoting fiscal decentralization and reducing public debt effectively.
},
 year = {2024}
}

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TY  - JOUR
T1  - The Interaction Between Fiscal Decentralization and Institutional Quality Could Serve as an Alternative to Reducing Public Debt in Central Africa

AU  - Nzomo Tcheunta Joseph Chrétien
AU  - Wandji Georges
AU  - Kenfack Martial Aimé
AU  - Fantcho Joseph Emmanuel
Y1  - 2024/05/24
PY  - 2024
N1  - https://doi.org/10.11648/j.jwer.20241301.13
DO  - 10.11648/j.jwer.20241301.13
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 24
EP  - 32
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20241301.13
AB  - The Central Africa region is encountering significant economic challenges, particularly regarding public debt management. High public debt in Central Africa may hinder governments' ability to invest in development projects and deliver essential services to the population. Therefore, it is important to explore how the interplay between fiscal decentralization and institutional quality can provide an effective solution for reducing public debt. Futhermore, Central African countries face significant difficulties in managing public debt, often exacerbated by corruption. This study examines whether the quality of institutions is the channel through which fiscal decentralization leads to the reduction of public debt in Central Africa. This study analyzes the impact of fiscal decentralization on public debt in Central Africa, with emphasis on the role of corruption. Using various econometric methods, including fixed effects, Driscoll and Kraay, the analysis reveals that fiscal decentralization helps reduce public debt in Central Africa. However, the positive impact of fiscal decentralization on public debt depends on a lower level of corruption. These results are robust as the use of GMM in system and the 2SLS approach of Lewbel have led to the same conclusions. These conclusions highlight the importance of the quality of institutions in the process of improving budgetary discipline, with a view to strengthening the beneficial effects of fiscal decentralization on public debt. This study suggests that anti-corruption institutions in Central Africa constitute the keystone for promoting fiscal decentralization and reducing public debt effectively.

VL  - 13
IS  - 1
ER  -

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Author Information

Nzomo Tcheunta Joseph Chrétien

Faculty of Economics and Management of Dschang University, University of Dschang, Dschang, Cameroon

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http://orcid.org/0009-0001-2831-578X
Wandji Georges

Faculty of Economics and Management of Dschang University, University of Dschang, Dschang, Cameroon

Contact Email
Kenfack Martial Aimé

Faculty of Economics and Management of Dschang University, University of Dschang, Dschang, Cameroon

Contact Email
Fantcho Joseph Emmanuel

Responsible for Teaching, Economic Sciences of Montain University, Montain University, Bangangté, Cameroun

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APA Style

Chrétien, N. T. J., Georges, W., Aimé, K. M., Emmanuel, F. J. (2024). The Interaction Between Fiscal Decentralization and Institutional Quality Could Serve as an Alternative to Reducing Public Debt in Central Africa. Journal of World Economic Research, 13(1), 24-32. https://doi.org/10.11648/j.jwer.20241301.13

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ACS Style

Chrétien, N. T. J.; Georges, W.; Aimé, K. M.; Emmanuel, F. J. The Interaction Between Fiscal Decentralization and Institutional Quality Could Serve as an Alternative to Reducing Public Debt in Central Africa. J. World Econ. Res. 2024, 13(1), 24-32. doi: 10.11648/j.jwer.20241301.13

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AMA Style

Chrétien NTJ, Georges W, Aimé KM, Emmanuel FJ. The Interaction Between Fiscal Decentralization and Institutional Quality Could Serve as an Alternative to Reducing Public Debt in Central Africa. J World Econ Res. 2024;13(1):24-32. doi: 10.11648/j.jwer.20241301.13

Copy | Download

@article{10.11648/j.jwer.20241301.13,
  author = {Nzomo Tcheunta Joseph Chrétien and Wandji Georges and Kenfack Martial Aimé and Fantcho Joseph Emmanuel},
  title = {The Interaction Between Fiscal Decentralization and Institutional Quality Could Serve as an Alternative to Reducing Public Debt in Central Africa
},
  journal = {Journal of World Economic Research},
  volume = {13},
  number = {1},
  pages = {24-32},
  doi = {10.11648/j.jwer.20241301.13},
  url = {https://doi.org/10.11648/j.jwer.20241301.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jwer.20241301.13},
  abstract = {The Central Africa region is encountering significant economic challenges, particularly regarding public debt management. High public debt in Central Africa may hinder governments' ability to invest in development projects and deliver essential services to the population. Therefore, it is important to explore how the interplay between fiscal decentralization and institutional quality can provide an effective solution for reducing public debt. Futhermore, Central African countries face significant difficulties in managing public debt, often exacerbated by corruption. This study examines whether the quality of institutions is the channel through which fiscal decentralization leads to the reduction of public debt in Central Africa. This study analyzes the impact of fiscal decentralization on public debt in Central Africa, with emphasis on the role of corruption. Using various econometric methods, including fixed effects, Driscoll and Kraay, the analysis reveals that fiscal decentralization helps reduce public debt in Central Africa. However, the positive impact of fiscal decentralization on public debt depends on a lower level of corruption. These results are robust as the use of GMM in system and the 2SLS approach of Lewbel have led to the same conclusions. These conclusions highlight the importance of the quality of institutions in the process of improving budgetary discipline, with a view to strengthening the beneficial effects of fiscal decentralization on public debt. This study suggests that anti-corruption institutions in Central Africa constitute the keystone for promoting fiscal decentralization and reducing public debt effectively.
},
 year = {2024}
}

Copy | Download

TY  - JOUR
T1  - The Interaction Between Fiscal Decentralization and Institutional Quality Could Serve as an Alternative to Reducing Public Debt in Central Africa

AU  - Nzomo Tcheunta Joseph Chrétien
AU  - Wandji Georges
AU  - Kenfack Martial Aimé
AU  - Fantcho Joseph Emmanuel
Y1  - 2024/05/24
PY  - 2024
N1  - https://doi.org/10.11648/j.jwer.20241301.13
DO  - 10.11648/j.jwer.20241301.13
T2  - Journal of World Economic Research
JF  - Journal of World Economic Research
JO  - Journal of World Economic Research
SP  - 24
EP  - 32
PB  - Science Publishing Group
SN  - 2328-7748
UR  - https://doi.org/10.11648/j.jwer.20241301.13
AB  - The Central Africa region is encountering significant economic challenges, particularly regarding public debt management. High public debt in Central Africa may hinder governments' ability to invest in development projects and deliver essential services to the population. Therefore, it is important to explore how the interplay between fiscal decentralization and institutional quality can provide an effective solution for reducing public debt. Futhermore, Central African countries face significant difficulties in managing public debt, often exacerbated by corruption. This study examines whether the quality of institutions is the channel through which fiscal decentralization leads to the reduction of public debt in Central Africa. This study analyzes the impact of fiscal decentralization on public debt in Central Africa, with emphasis on the role of corruption. Using various econometric methods, including fixed effects, Driscoll and Kraay, the analysis reveals that fiscal decentralization helps reduce public debt in Central Africa. However, the positive impact of fiscal decentralization on public debt depends on a lower level of corruption. These results are robust as the use of GMM in system and the 2SLS approach of Lewbel have led to the same conclusions. These conclusions highlight the importance of the quality of institutions in the process of improving budgetary discipline, with a view to strengthening the beneficial effects of fiscal decentralization on public debt. This study suggests that anti-corruption institutions in Central Africa constitute the keystone for promoting fiscal decentralization and reducing public debt effectively.

VL  - 13
IS  - 1
ER  -

Copy | Download