Fiscal Deficits Financing and Sustainable Economic Development in Africa

Abstract :

The impact of fiscal deficits on economic growth has been a subject of extensive research over the past ten decades and still remains till date. However, literature identified three views on the debate; namely: the Keynesian view that believes that fiscal deficit spending by the government has a positive effect on economic growth, the neoclassical view that argues that fiscal deficit is a disadvantage to economic growth and the Ricardian view that suggests that the impact of deficit financing is neutral to economic growth in the long-run, Emamanuel (2013).