Fiscal Dividend from Saving, Investment and Per Capita Income Growth in Sub-Saharan Africa : Panel Data Analysis

Most of sub-Saharan Africa countries (SSA) have recorded impressive rates of growth and remained resilient to shocks especially during the recent past. Nevertheless, the status of social welfare has remained low as manifested by poor quality of standard of living and short longevity of life. In cognizance of the role of public sector to wellbeing through the fiscal arrangement, the objective of this study was to unearth the extent to which SSA have taken advantage of the achieved saving, investment and growth performance to enhance fiscal gains. Panel data analysis of 40 countries was done and results indicated that per capita income growth, total investment and gross national saving bolstered governments' revenue and thus reduced budget deficits in SSA, except in the global economic crisis during which, only saving yielded significant fiscal dividend in terms of cushioning the revenue. In view of this, enhancing national savings (both public and private) in SSA can appropriate surpassing return to fiscal stance