Measuring and explaining government efficiency in developing countries
Glenn Rayp and
Nicolas Van de Sijpe
Journal of Development Studies, 2007, vol. 43, issue 2, 360-381
Abstract:
Governments in developing countries play an important role in the growth process, most notably through their budgetary policies. This potentially beneficial role is, however, hindered by government expenditure inefficiency. This is illustrated in a basic model of public spending and economic growth. Government efficiency is estimated for 52 developing countries using data envelopment analysis and subsequently employed in a general to specific approach in order to identify its determinants. We find government expenditure efficiency is primarily determined by structural country variables and governance indicators. Economic policy determinants apparently count less. The Asian countries and low income European countries in the sample have a significantly higher and lower efficiency, respectively.
Keywords: JEL Codes: H21; H50; O23 (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (35)
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Working Paper: Measuring and Explaining Government Inefficiency in Developing Countries (2004) 
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Persistent link: https://EconPapers.repec.org/RePEc:taf:jdevst:v:43:y:2007:i:2:p:360-381
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DOI: 10.1080/00220380601125230
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