Determinants of Government Efficiency

Author/Editor:

David Hauner ; Annette J Kyobe

Publication Date:

September 1, 2008

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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 2006, 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 institutional and demographic factors also play a significant role.

Series:

Working Paper No. 08/228

Subject:

Frequency:

Biannually

English

Publication Date:

September 1, 2008

ISBN/ISSN:

9781451870862/1018-5941

Stock No:

WPIEA2008228

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

25

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