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Public sector efficiency, foreign aid and small island developing states

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  • Simon Feeny

    (School of Economics, Finance and Marketing, RMIT University, Melbourne, Australia)

  • Mark Rogers

    (Harris Manchester College, University of Oxford, Oxford, UK)

Abstract

This paper examines the efficiency of public sector expenditures and foreign aid at achieving social sector outcomes in Small Island Developing States (SIDS). Efficiency is estimated using a Stochastic Production Function (SPF) approach and panel data since 1990. A second stage of the analysis examines the determinants of efficiency. Results indicate that the efficiency of aid and public sectors at improving life expectancy has deteriorated during the 1990s but efficiency at improving school enrolments has increased. Higher levels of governance are associated with higher efficiency. There is also evidence to suggest that efficiency is lower in SIDS, as well as in Sub-Saharan Africa. Copyright © 2008 John Wiley & Sons, Ltd.

Suggested Citation

  • Simon Feeny & Mark Rogers, 2008. "Public sector efficiency, foreign aid and small island developing states," Journal of International Development, John Wiley & Sons, Ltd., vol. 20(4), pages 526-546.
    • Handle: RePEc:wly:jintdv:v:20:y:2008:i:4:p:526-546
    DOI: 10.1002/jid.1475
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    References listed on IDEAS

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    Cited by:

    1. 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 and Business, University of Belgrade, vol. 57(193), pages 7-24, April- Ju.
    2. Bougharriou, Nouha & Benayed, Walid & Gabsi, Foued Badr, 2022. "Democratic transition and fiscal policy in the Arab world," Economic Systems, Elsevier, vol. 46(2).
    3. Dobdinga Fonchamnyo & Molem Sama, 2016. "Determinants of public spending efficiency in education and health: evidence from selected CEMAC countries," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 40(1), pages 199-210, January.
    4. Riadh Brini & Hatem Jemmali, 2015. "Public Spending Efficiency, Governance, and Political and Economic Policies: is there a Substantial Casual Relation? Evidence from Selected MENA Countries," Working Papers 947, Economic Research Forum, revised Sep 2015.

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