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Investing in public investment: an index of public investment efficiency

Author

Listed:
  • Era Dabla-Norris
  • Jim Brumby
  • Annette Kyobe
  • Zac Mills
  • Chris Papageorgiou

Abstract

Pritchett (J Econ Growth 5:361–384, 2000 ) convincingly argued that the difference between investment cost and capital value is of first-order empirical importance especially for developing countries where public investment is the primary source of investment. This paper constructs a public investment efficiency index that captures the institutional environment underpinning public investment management across four different stages: project appraisal, selection, implementation, and evaluation. Covering 71 countries, including 40 low-income countries, the index allows for benchmarking across regions and country groups and for nuanced policy-relevant analysis and identification of specific areas where reform efforts could be prioritized. Research applications are outlined. Copyright Springer Science+Business Media, LLC 2012

Suggested Citation

  • Era Dabla-Norris & Jim Brumby & Annette Kyobe & Zac Mills & Chris Papageorgiou, 2012. "Investing in public investment: an index of public investment efficiency," Journal of Economic Growth, Springer, vol. 17(3), pages 235-266, September.
    • Handle: RePEc:kap:jecgro:v:17:y:2012:i:3:p:235-266
    DOI: 10.1007/s10887-012-9078-5
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    More about this item

    Keywords

    Public investment; Public investment management; Project appraisal; Selection; Implementation; Evaluation; Growth; O19; O23; O47;
    All these keywords.

    JEL classification:

    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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