Simple time series regressions for 37 low-income African countries during 1960-2004 suggest that government consumption is highly procyclical, with consumption responding more than proportionately to fluctuations in output in many cases. The results from a cross-country specification suggest...

Recently developed panel co-integration techniques are applied to data for six African countries to test the Feldstein-Horioka approach to measuring capital mobility. The results suggest three conclusions: savings and investment in panel data are non-stationary series and they are co-integrated;...