EconPapers    
Economics at your fingertips  
 

Relative Efficiency of Government Spending and Its Determinants: Evidence from East Asian Countries

Eric Wang () and Eskander Alvi ()

Eurasian Economic Review, 2011, vol. 1, issue 1, 3-28

Abstract: This paper aims not only to measure the relative efficiency of government spending in seven Asian countries but also to investigate the factors that influence government performance using annual data covering the period 1986–2007. Four hypotheses are tested: (i) the effect of private sector activities on the inefficiency of government spending in raising GDP, (ii) the government corruption hypothesis, (iii) the government size hypothesis, and (iv) the relationship between monetary expansion and the performance of government spending. The results of data envelopment analysis (DEA) show that Japan and Singapore have the highest efficiency scores in the sample. Extreme bounds analysis (EBA) in association with Tobit regression indicates that private sector activities exhibit a robust negative relationship with government inefficiency. Corruption is found to be a crucial factor affecting government performance, and M2 expansion and the inefficiency of government spending are robustly positively related. Copyright Eurasia Business and Economics Society 2011

Keywords: Government spending; Efficiency; Data Envelopment Analysis; Extreme Bounds Analysis; H50 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.14208/BF03353822 (text/html)
Access to full text is restricted to subscribers.

Related works:
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: https://EconPapers.repec.org/RePEc:spr:eurase:v:1:y:2011:i:1:p:3-28

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40822

DOI: 10.14208/BF03353822

Access Statistics for this article

Eurasian Economic Review is currently edited by Dorothea Schäfer

More articles in Eurasian Economic Review from Springer, Eurasia Business and Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-04-23
Handle: RePEc:spr:eurase:v:1:y:2011:i:1:p:3-28