Institutions Matter: Press Freedom and Government Spending Efficiency

Bao-We-Wal Bambe (), Jean-Louis Combes, Manegdo Ulrich Doamba () and Chantale Riziki Oweggi ()
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Bao-We-Wal Bambe: LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne
Manegdo Ulrich Doamba: LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne
Chantale Riziki Oweggi: LEO - Laboratoire d'Économie d'Orleans [2022-...] - UO - Université d'Orléans - UT - Université de Tours - UCA - Université Clermont Auvergne, UCA - Université Clermont Auvergne

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Abstract: We examine the effect of media freedom on public expenditure efficiency, using a panel of 158 advanced and developing countries from 1994 to 2016. We find robust evidence that media freedom significantly improves government efficiency, and the effect is strongly complementary to per capita income, level of education, Internet access, and fiscal rules. We further empirically examine the underlying mechanisms and show that the effect of media freedom on efficiency is mainly channeled through reduced corruption, improved transparency and accountability in the public sector, and enhanced electoral competition. These findings underscore the critical role of media freedom in fostering good governance and efficient resource use.

Keywords: Government spending efficiency Media freedom Institutions JEL Classification: C23 E62 H6 H11; Government spending efficiency; Media freedom; Institutions JEL Classification: C23; E62; H6; H11 (search for similar items in EconPapers)
Date: 2024-12-10
Note: View the original document on HAL open archive server: https://hal.science/hal-04828819v1
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