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Crossing chasms: A PLS approach to EU public sector performance assessment

Author

Listed:
  • Adriana AnaMaria Davidescu
  • Oana-Ramona Lobonț
  • Eduard Mihai Manta
  • Lavinia Daniela Mihiț
  • Alexandra-Mădălina Țăran

Abstract

This paper examines the dynamics of public sector performance across European Union (EU) countries through a comprehensive methodological framework. This study introduces the European Public Sector Performance Index, a novel approach that employs Partial Least Squares (PLS) econometric modelling and cluster analysis to evaluate public sector performance from 2007 to 2021. By assessing performance across governance, social, and economic dimensions, the research captures the multifaceted nature of public sector efficiency in the EU. Our investigation reveals significant determinants of performance, including governance factors like Control of Corruption, Rule of Law, and Government Effectiveness, as well as economic indicators such as Inflation and social factors like Equity of access to healthcare services and Education Spending. These findings underscore the critical role of transparent governance, economic stability, and equitable social policies in enhancing public sector efficiency. Despite its reliance on secondary data and the PLS method, the study provides new methodological insights and empirical evidence on public sector performance, contributing to the literature with a holistic analysis that integrates digitalisation and well-being. This study’s holistic approach offers actionable insights for policymakers and stakeholders, emphasising the need for robust governance and equitable policies to improve public sector performance across the EU. The omission of certain societal components—such as economic conditions, demographic changes, or cultural factors—may result in a skewed representation of how digital transformation and governance interact. These external factors can significantly influence the effectiveness of digital initiatives and the overall performance of public institutions.

Suggested Citation

  • Adriana AnaMaria Davidescu & Oana-Ramona Lobonț & Eduard Mihai Manta & Lavinia Daniela Mihiț & Alexandra-Mădălina Țăran, 2025. "Crossing chasms: A PLS approach to EU public sector performance assessment," PLOS ONE, Public Library of Science, vol. 20(6), pages 1-43, June.
    • Handle: RePEc:plo:pone00:0325994
    DOI: 10.1371/journal.pone.0325994
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    References listed on IDEAS

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    1. Antonio Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Public sector efficiency: evidence for new EU member states and emerging markets," Applied Economics, Taylor & Francis Journals, vol. 42(17), pages 2147-2164.
    2. António Afonso & Alma Romero & Emma Monsalve, 2013. "Public sector efficiency: evidence for Latin America," Working Papers Department of Economics 2013/20, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    3. Sven Modell, 2005. "Performance Management in the Public Sector: Past Experiences, Current Practices and Future Challenges," Australian Accounting Review, CPA Australia, vol. 15(37), pages 56-66, November.
    4. Teresa Curristine & Zsuzsanna Lonti & Isabelle Joumard, 2007. "Improving Public Sector Efficiency: Challenges and Opportunities," OECD Journal on Budgeting, OECD Publishing, vol. 7(1), pages 1-41.
    5. Antonio Afonso & Sonia Fernandes, 2006. "Measuring local government spending efficiency: Evidence for the Lisbon region," Regional Studies, Taylor & Francis Journals, vol. 40(1), pages 39-53.
    6. repec:idb:brikps:80478 is not listed on IDEAS
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