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Investing in public investment: an index of public investment efficiency

  • Era Dabla-Norris


  • Jim Brumby


  • Annette Kyobe


  • Zac Mills


  • Chris Papageorgiou


Pritchett (J Econ Growth 5:361–384, 2000 ) convincingly argued that the difference between investment cost and capital value is of first-order empirical importance especially for developing countries where public investment is the primary source of investment. This paper constructs a public investment efficiency index that captures the institutional environment underpinning public investment management across four different stages: project appraisal, selection, implementation, and evaluation. Covering 71 countries, including 40 low-income countries, the index allows for benchmarking across regions and country groups and for nuanced policy-relevant analysis and identification of specific areas where reform efforts could be prioritized. Research applications are outlined. Copyright Springer Science+Business Media, LLC 2012

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Article provided by Springer in its journal Journal of Economic Growth.

Volume (Year): 17 (2012)
Issue (Month): 3 (September)
Pages: 235-266

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Handle: RePEc:kap:jecgro:v:17:y:2012:i:3:p:235-266
DOI: 10.1007/s10887-012-9078-5
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