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Determinants of Government Efficiency

  • Hauner, David
  • Kyobe, Annette

Summary We compile the first large cross-country panel dataset of public sector performance and efficiency, encompassing 114 countries on all income levels from 1980 to 2004, with about 1,800 country-year observations for the education sector and about 900 observations for health. We regress these indicators on potential economic, institutional, demographic, and geographic determinants. Our most resounding conclusion is that higher government expenditure relative to GDP tends to be associated with lower efficiency in the respective sector. Moreover, we find that richer countries exhibit better public sector performance and efficiency, and that government accountability and demographic factors also play a significant role.

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File URL: http://www.sciencedirect.com/science/article/pii/S0305-750X(10)00091-4
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Article provided by Elsevier in its journal World Development.

Volume (Year): 38 (2010)
Issue (Month): 11 (November)
Pages: 1527-1542

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Handle: RePEc:eee:wdevel:v:38:y:2010:i:11:p:1527-1542
Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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