Full Length Research Paper
Abstract
This paper uses annual data for the period of 1960 - 2005 to investigate the causal relationship between government revenues and spending in Côte d’Ivoire. The empirical findings reveal a positive long-run unidirectional causality running from revenues to expenditures. This implies that achieving fiscal consolidation should focus more on reducing government spending rather than raising revenues.
Key words: Government expenditures, government revenues, cointegration, causality, Côte d’Ivoire.
JEL classification: E62 ; H61 ; C32.
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