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Determinants of public spending efficiency in education and health: evidence from selected CEMAC countries

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  • Dobdinga Fonchamnyo
  • Molem Sama

Abstract

This paper analyses the efficiency of public spending in the education and health sectors of Cameroon, Chad and Central African Republic. It also examines the institution and economic factors influencing spending efficiency in these sectors in the countries selected for the period 2000–2012. The public sector efficiency scores are estimated in the first stage by using the non-parametric Data Envelopment Analysis (DEA) approach while in the second stage, the panel data Tobit and the Fractional Logit regression techniques are used to determine the effect of institutional and economic factors on public spending efficiency in the education and health sectors. The results from the estimation show that Cameroon is more efficient than Chad and Central African Republic in its public spending in education and health. Chad is least efficient in public spending in education, although it spends more on education as compared to the other countries in the study. The results also indicate that the quality of budgetary and financial management has a positive and statistically significant influence on efficiency while corruption has a negative and significant influence on public spending efficiency in the education and health sectors. The results put together recommend that efforts should be put in place to curb corruption and improve on the quality of budgetary and financial management. Copyright Springer Science+Business Media New York 2016

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  • Dobdinga Fonchamnyo & Molem Sama, 2016. "Determinants of public spending efficiency in education and health: evidence from selected CEMAC countries," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 40(1), pages 199-210, January.
    • Handle: RePEc:spr:jecfin:v:40:y:2016:i:1:p:199-210
    DOI: 10.1007/s12197-014-9310-6
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    4. Nistor Cristina Silvia & Ștefănescu Cristina Alexandrina & Crișan Andrei-Răzvan, 2017. "Performance Through Efficiency in the Public Healthcare System – A DEA Approach in an Emergent Country," Studia Universitatis Babeș-Bolyai Oeconomica, Sciendo, vol. 62(1), pages 31-49, April.
    5. Abiodun Adegboye & Olawale Daniel Akinyele, 2022. "Assessing the determinants of government spending efficiency in Africa," Future Business Journal, Springer, vol. 8(1), pages 1-17, December.
    6. Jean-François Brun & Constantin Thierry Compaore, 2021. "Public Expenditures Efficiency On Education Distribution in Developing Countries," CERDI Working papers hal-03116615, HAL.
    7. Asma Arif & Umaima Arif, 2023. "Institutional Approach to the Budget Deficit: An Empirical Analysis," SAGE Open, , vol. 13(2), pages 21582440231, May.
    8. Asma Saeed & Zahoor Ul Haq & Javed Iqbal, 2024. "Investigating the Factors Affecting Research and Development Expenditure Efficiency in China and India," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2761-2771, March.
    9. Jean-François Brun & Constantin Thierry Compaore, 2021. "Public Expenditures Efficiency On Education Distribution in Developing Countries," Working Papers hal-03116615, HAL.
    10. Lilia Yotova & Kristina Stefanova, 2017. "Efficiency of Tertiary Education Expenditure in CEE Countries: Data Envelopment Analysis," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 352-364, September.
    11. Cheick Camara, 2023. "Gender Budgeting and Health Spending Efficiency in Indian States: A Staggered Difference-in-Differences Analysis," CERDI Working papers hal-04294262, HAL.
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    13. Kristina Stefanova & Nikolay Velichkov, 2020. "Analysis of the Efficiency of Tertiary Education Expenditure in European Union Member States from Central and Eastern Europe: An Efficiency Frontier Approach," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 18(1), pages 115-128.
    14. Nahed Trabelsi & Younes Boujelbene, 2024. "Public Sector Efficiency and Economic Growth in Developing Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 596-615, March.
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    More about this item

    Keywords

    Public spending efficiency; DEA; CEMAC countries; H11; C23;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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