Determinants of Government Efficiency

27 Pages Posted: 8 Oct 2008

See all articles by David Hauner

David Hauner

International Monetary Fund (IMF) - African Department

Annette J. Kyobe

International Monetary Fund (IMF)

Date Written: September 2008

Abstract

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.

Keywords: Working Paper

Suggested Citation

Hauner, David and Kyobe, Annette J., Determinants of Government Efficiency (September 2008). IMF Working Papers, Vol. , pp. 1-25, 2008. Available at SSRN: https://ssrn.com/abstract=1278439

David Hauner (Contact Author)

International Monetary Fund (IMF) - African Department ( email )

1700 19th Street, NW
Washington, DC 20431
United States

Annette J. Kyobe

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

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