Measuring and Explaining Government Inefficiency in Developing Countries
AbstractWe show the relevance of government expenditure inefficiency using the Barro(1990) model. We estimate government inefficiency for 52 developing countries using a data envelopment analysis. The estimated inefficiencies are subsequently used in a general-to-specific approach in order to identify their determinants. We find the government expenditure inefficiency is primarily determined by governance and political variables, and structural country variables. Economic policy determinants apparently count less. Government inefficiency of the Sub Saharan countries in the sample is substantially higher.
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Bibliographic InfoPaper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 04/266.
Length: 37 pages
Date of creation: Oct 2004
Date of revision:
Government inefficiency; data envelopment analysis; economic development;
Other versions of this item:
- Glenn Rayp & Nicolas Van De Sijpe, 2007. "Measuring and explaining government efficiency in developing countries," The Journal of Development Studies, Taylor and Francis Journals, vol. 43(2), pages 360-381.
- van de Sijpe, Nicolas & Rayp, Glenn, 2005. "Measuring and Explaining Government Inefficiency in Developing Countries," Proceedings of the German Development Economics Conference, Kiel 2005 32, Verein für Socialpolitik, Research Committee Development Economics.
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- O23 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
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