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Measuring and explaining government efficiency in developing countries

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  • Glenn Rayp
  • Nicolas Van De Sijpe

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.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Development Studies.

Volume (Year): 43 (2007)
Issue (Month): 2 ()
Pages: 360-381

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Handle: RePEc:taf:jdevst:v:43:y:2007:i:2:p:360-381

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Keywords: JEL Codes: H21; H50; O23;

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Cited by:
  1. Antonis Adam & Manthos Delis & Pantelis Kammas, 2014. "Fiscal decentralization and public sector efficiency: evidence from OECD countries," Economics of Governance, Springer, Springer, vol. 15(1), pages 17-49, February.
  2. Antonis Adam & Manthos Delis & Pantelis Kammas, 2011. "Public sector efficiency: leveling the playing field between OECD countries," Public Choice, Springer, Springer, vol. 146(1), pages 163-183, January.
  3. Sok-Gee Chan Mohd & Zaini Abd Karim, 2012. "Public Spending Efficiency And Political And Economic Factors: Evidence From Selected East Asian Countries," Economic Annals, Faculty of Economics, University of Belgrade, vol. 57(193), pages 7-24, April- Ju.
  4. Rouselle Lavado & Emilyn Cabanda, 2009. "The efficiency of health and education expenditures in the Philippines," Central European Journal of Operations Research, Springer, Springer, vol. 17(3), pages 275-291, September.

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