ASSESSING PUBLIC SECTOR EFFICIENCY IN DEVELOPING COUNTRIES WITH DEA AND BOOTSTRAP ANALYSIS

Nahed Trabelsi and Younes Boujelbene
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Nahed Trabelsi: University of Sfax
Younes Boujelbene: University of Sfax

Journal of Smart Economic Growth, 2023, vol. 8, issue 2, 95-125

Abstract: The purpose of this paper is to analyse public sector efficiency of 75 developing countries. In a first step, we have computed Public Sector Performance (PSP) indicators for the period of 2000-2018. Based on these PSPs, we have estimated efficiency scores using Data Envelopment Analysis (DEA). The input-oriented DEA analysis reveals that countries can achieve the same level of performance using 42% less spending. The output-oriented DEA models conclude that developing countries can increase their performance by 33% with the same level of public spending. In a second step, we have examined the determinants of efficiency of public sector by applying a Bootstrap analysis. The empirical explanation of the efficiency scores reveals that the strong institutions can play a crucial role in enhancing the efficiency of public sector. Our findings can be useful for policymakers in order to set out a structural adjustment plan to improve the efficiency level for public sector.

Keywords: public spending; public sector performance; efficiency; data envelopment analysis; Bootstrap analysis (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:seg:012016:v:8:y:2023:i:2:p:95-125

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