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Measuring and Explaining Government Inefficiency in Developing Countries

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  • van de Sijpe, Nicolas
  • Rayp, Glenn

Abstract

We 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 Info

Paper provided by Verein für Socialpolitik, Research Committee Development Economics in its series Proceedings of the German Development Economics Conference, Kiel 2005 with number 32.

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Date of creation: 2005
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Handle: RePEc:zbw:gdec05:3505

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Keywords: Government inefficiency; data envelopment analysis; economic development;

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Cited by:
  1. Adam, Antonis & Delis, Manthos D & Kammas, Pantelis, 2012. "Fiscal decentralization and public sector efficiency: Evidence from OECD countries," MPRA Paper 36889, University Library of Munich, Germany.
  2. Adam, Antonis & Delis, Manthos D & Kammas, Pantelis, 2008. "Public sector efficiency: Leveling the playing field between OECD countries," MPRA Paper 16493, University Library of Munich, Germany.
  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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