Economics at your fingertips  

What determines administrative capacity in developing countries?

Roberto Ricciuti (), Antonio Savoia and Kunal Sen ()
Additional contact information
Antonio Savoia: University of Manchester

International Tax and Public Finance, 2019, vol. 26, issue 5, 972-998

Abstract: Abstract While it is recognised that effective state institutions are pivotal for economic development, their origins and what explains their cross-country differences are not well understood. We focus on the quality of budgetary institutions in developing economies, as efficient public financial planning in such countries is crucial for public goods and services provision. We argue that political institutions, seen as the system of checks and balances on the executive, are a key ingredient for building such capacity. Exploiting a recent database on public financial management performance in developing economies and an instrumental variable strategy, we generally find that stronger constraints on the executive have a positive effect on the ability of states to design, implement and monitor their budget. Our findings are robust to different specifications, controls and estimation methods.

Keywords: State capacity; Administrative capacity; Constraints on the executive; Public finance management; Economic development; Budgetary institutions (search for similar items in EconPapers)
JEL-codes: H61 H83 P48 N46 N47 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: What determines administrative capacity in developing countries? (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
http://www.springer. ... ce/journal/10797/PS2

Access Statistics for this article

International Tax and Public Finance is currently edited by Ronald B. Davies and Kimberly Scharf

More articles in International Tax and Public Finance from Springer, International Institute of Public Finance Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

Page updated 2019-12-12
Handle: RePEc:kap:itaxpf:v:26:y:2019:i:5:d:10.1007_s10797-019-09535-y