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Assessing Public Sector Efficiency In Developing Countries With Dea And Bootstrap Analysis

Author

Listed:
  • Nahed Trabelsi

    (University of Sfax)

  • Younes Boujelbene

    (University of Sfax)

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.

Suggested Citation

  • Nahed Trabelsi & Younes Boujelbene, 2023. "Assessing Public Sector Efficiency In Developing Countries With Dea And Bootstrap Analysis," Journal of Smart Economic Growth, , vol. 8(2), pages 95-125, September.
    • Handle: RePEc:seg:012016:v:8:y:2023:i:2:p:95-125
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