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Measuring and Explaining Government Inefficiency in Developing Countries

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  • van de Sijpe, Nicolas
  • Rayp, Glenn

Abstract

We show the relevance of government expenditure inefficiency using the Barro (1990) model. We estimate government inefficiency for 52 developing countries using a data envelopment analysis. The estimated inefficiencies are subsequently used in a general to specific approach in order to identify their determinants. We find the government expenditure inefficiency is primarily determined by governance and political variables, and structural country variables. Economic policy determinants apparently count less. Government inefficiency of the Sub Saharan countries in the sample is substantially higher.

Suggested Citation

  • van de Sijpe, Nicolas & Rayp, Glenn, 2005. "Measuring and Explaining Government Inefficiency in Developing Countries," Proceedings of the German Development Economics Conference, Kiel 2005 32, Verein für Socialpolitik, Research Committee Development Economics.
    • Handle: RePEc:zbw:gdec05:3505
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    More about this item

    Keywords

    Government inefficiency; data envelopment analysis; economic development;
    All these keywords.

    JEL classification:

    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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