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Efficiency of Public Expenditure: Review and Preliminary Results for Romania

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  • Simona-Gabriela Masca

Abstract

The issue of public spending efficiency is a current one in the majority of countries, especially for those confronting large negative effects derived from recent crisis. In Romania, some arrangements were recorded lately in order to reduce costs in government sectors. Thus, we evaluated the performance and efficiency level in Romanian public sector, both in aggregate and disaggregated terms. Our analysis is based on a methodology recently developed in the area. The results on composites indicators allow to place Romania above average in terms of public sector efficiency, but in a very heterogeneous situation in structure: total public spending is highly efficient in generate economic performance, while it is highly inefficient in insuring stability in the same period 2001-2012. Our findings are useful for government to set intervention priorities in order to improve efficiency in the most inefficient sectors. One special case is that of social public expenditures, whose impact on income distribution has weakened lately requiring the reorganization of the social public spending system.

Suggested Citation

  • Simona-Gabriela Masca, 2014. "Efficiency of Public Expenditure: Review and Preliminary Results for Romania," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 4(8), pages 326-345, August.
  • Handle: RePEc:hur:ijarbs:v:4:y:2014:i:8:p:326-345
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    Cited by:

    1. Anup Kumar Yadava & Yadawananda Neog, 2022. "Public Sector Performance and Efficiency Assessment of Indian States," Global Business Review, International Management Institute, vol. 23(2), pages 493-511, April.
    2. Radulescu Magdalena & Banica Logica, 2015. "Features Of The Public Spending By Function In Cee Countries - Trends And Shifts During The Crisis Period," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 104-115, October.

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    More about this item

    Keywords

    Public System; Government Expenditure; Efficiency; Composites Indicators;
    All these keywords.

    JEL classification:

    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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