Work

What Role Do Finance Ministers Play in Political Business Cycles? Evidence‐Based on a New African Dataset

Year: 2025

Type: article

Abstract: ABSTRACT This study investigates how the personal characteristics of finance ministers influence political budget cycles in Africa. Using a new dataset covering 300 finance ministers across 23 countries from 1980 to 2020, we find that political budget cycles primarily take the form of increased government consumption during election years. Ministers with prior central banking experience are less likely to amplify spending in election years, effectively curbing political budget cycles. These results remain consistent after accounting for institutional quality, ministerial tenure, and other confounding factors. The findings contribute to the literature by showing that the appointment of finance ministers in African countries shapes fiscal discipline during elections.

Source: International Journal of Finance & Economics

DOI: 10.1002/ijfe.70072

Author: Christine Olivia Strong

Institution: Old Dominion University

Language: English

Topic: Fiscal Policies and Political Economy

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,400