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Abstract: This paper empirically examines the growth effects of stabilisation funds and fiscal rules in oil‐rich African countries, using Nigeria as a case study. The analysis captures the ‘international standard’ of the two fiscal instruments by empirically comparing the effects of Nigerian instruments with those of non‐African oil‐exporting countries (i.e. Norway and Mexico). The results show that the fiscal instruments are effective in Nigeria and that the effectiveness is comparable to that of non‐African economies, implying that the Nigerian instruments meet ‘international standard’. The paper also discusses the development policy implications of the results, one of which is that the fiscal instruments can be used to control risky behaviours of economic agents in oil‐rich African economies. For example, since the instruments are effective in increasing growth (i.e. real GDP growth) and limiting its volatility, they can be employed to control increases in demand for and supply of risky sex caused by increases in real per capita income during oil booms. [ABSTRACT FROM AUTHOR]

This study aims at examining the debt threshold effects on economic growth in Africa. Non-dynamic and dynamic panel threshold regression approaches are used. The findings indicate that the estimated debt threshold is sensitive to the estimation technique used and to growth control variables included in the estimation. Existence of nonlinearities in the debt-growth nexus cannot be denied. The findings show that while low debt is neutral or growth-enhancing, high debt is consistently detrimental to growth for all the cases considered. This study shows that caution is needed when suggesting a debt threshold since this can be sensitive to modelling choice and to growth control variables. Nonlinearities in the debt-growth nexus are established but further analysis is needed to suggest a policy. [ABSTRACT FROM AUTHOR]