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The objective of this paper is to study the long-term sustainability of fiscal policies in CEMAC, following the pioneering approach of Hamilton and Flavin [10]. Over the period from 1992 to 2012, first and second generation panel stationarity tests suggest that total public expenditures, total revenues, the primary budget balance and public debt are stationary. As a result, fiscal policies are sustainable in the long run within the area. There is a unidirectional causality between government revenues and expenditures. Decisions to increase expenditures are made on the basis of the availability of revenues.

Sustainability of Fiscal Policy in Economic and Monetary Community of Central Africa: An Analysis Based on Panel Data