Public Spending and Outcomes: Does Governance Matter?

36 Pages Posted: 20 Apr 2016

See all articles by Andrew Sunil Rajkumar

Andrew Sunil Rajkumar

World Bank - Development Research Group (DECRG)

Vinaya Swaroop

World Bank - Development Research Group (DECRG)

Multiple version iconThere are 2 versions of this paper

Date Written: May 31, 2002

Abstract

The authors examine the role of governance-measured by level of corruption and quality of bureaucracy-and ask how it affects the relationship between public spending and outcomes. Their main innovation is to see if differences in efficacy of public spending can be explained by quality of governance. The authors find that public health spending lowers child and infant mortality rates in countries with good governance. The results also indicate that as countries improve their governance, public spending on primary education becomes effective in increasing primary education attainment. These findings have important implications for enhancing the development effectiveness of public spending. The lessons are particularly relevant for developing countries, where public spending on education and health is relatively low, and the state of governance is often poor.

Keywords: Health Economics & Finance, Health Monitoring & Evaluation, Decentralization, National Governance, Public Health Promotion, Health Systems Development & Reform, Governance Indicators, Public Sector Economics

Suggested Citation

Rajkumar, Andrew Sunil and Swaroop, Vinaya, Public Spending and Outcomes: Does Governance Matter? (May 31, 2002). World Bank Policy Research Working Paper No. 2840, Available at SSRN: https://ssrn.com/abstract=2648706

Andrew Sunil Rajkumar (Contact Author)

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

Vinaya Swaroop

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

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