Empirical Determinants of Government Efficiency: A Study Based on Objective Indicators

Oliveira, Francisca Guedes de

doi:10.1590/1981-3895201200010003

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Article • Bras. Political Sci. Rev. 6 (1) • 2012 • https://doi.org/10.1590/1981-3895201200010003 copy

Empirical Determinants of Government Efficiency: A Study Based on Objective Indicators

Authorship SCIMAGO INSTITUTIONS RANKINGS

This paper is concerned with two things: finding an objective and easily quantifiable measure of government efficiency and testing possible determinants of government quality. As measures of government efficiency, we used ratios of infant mortality rate to health expenditures as a percentage of GDP, and ratios of drop out and illiteracy rates to education expenditures as a percentage of GDP. We assume that government efficiency in providing health and education services depends on economic, political and cultural factors.

Keywords:
Government quality; Public goods provision; Efficiency; Political determinants; Cultural determinants; Economic determinants

Irpse	(1)	(2)	(3)	(4)	(5)	(6)
Const.	-0.559	52.5	39.39	54.63	58.35	62.14
GDPpc	11.486^* ***** significant at 10%	4.446^* * Significant at 1%;	5.298^* * Significant at 1%;	4.333^* * Significant at 1%;	4.031^* * Significant at 1%;	2.813^* * Significant at 1%;
Gge		0.178^* * Significant at 1%;	0.240^* * Significant at 1%;	0.174^* * Significant at 1%;	0.179^* * Significant at 1%;	0.119^* * Significant at 1%;
Gini			0.152^* ***** significant at 10%
EF				-2.497
PRI					-0.868^* * Significant at 1%;
LOI						1.674^* * Significant at 1%;
R2	11.1	28.2	42.2	28.6	30.3	36.3
n. obs.	560	418	217	413	405	262

Irpse	(7)	(8)	(9)	(10)	(11)
Const.	49.8	59.6	53.6	85.9	53.3
GDPpc	4.592^* * Significant at 1%;	2.783^* * Significant at 1%;	4.028^* * Significant at 1%;	1.602^ significant at 5%;	4.494^* * Significant at 1%;
Gge	0.166^* * Significant at 1%;	0.177^* * Significant at 1%;	0.163^* * Significant at 1%;	0.134^* * Significant at 1%;	0.122^* * Significant at 1%;
RF	5.044^ significant at 5%;
UP		0.111^ significant at 5%;
(0,15)			0.013
(65,…)			0.407
EA				-2.054^* * Significant at 1%;
ES				-0.069
T					0.009
GDFI					0.166^* ***** significant at 10%
R2	29.1	29.6	28.9	40.2	36.4
n. obs.	415	418	418	221	360

dorpse	(1)	(2)	(3)	(4)	(5)	(6)
Const.	63.49	62.34	46.74	60.59	64.87	59.55
GDPpc	3.619^* * Significant at 1%;	3.016^* * Significant at 1%;	3.979^* * Significant at 1%;	3.146^* * Significant at 1%;	2.785^* * Significant at 1%;	3.079^* * Significant at 1%;
Gge		0.212^* * Significant at 1%;	0.269^* * Significant at 1%;	0.213^* * Significant at 1%;	0.214^* * Significant at 1%;	0.179^* * Significant at 1%;
Gini			0.131
EF				1.724
PRI					-0.221
LOI						0.634
R2	22.1	28.6	33.5	28.7	28.4	33.7
n. obs.	459	380	220	380	374	215

dorpse	(7)	(8)	(9)	(10)	(11)
Const.	61.04	60.233	66.35	77.88	59.97
GDPpc	0.343^* * Significant at 1%;	3.549^* * Significant at 1%;	3.329^* * Significant at 1%;	3.138^* * Significant at 1%;	3.109^* * Significant at 1%;
Gge	0.207^* * Significant at 1%;	0.214^* * Significant at 1%;	0.219^* * Significant at 1%;	0.146^* * Significant at 1%;	0.186^* * Significant at 1%;
RF	2.987^* ***** significant at 10%
UP		-0.047
(0,15)			-0.113
(65,…)			-0.247
EA				-0.143^* * Significant at 1%;
ES				-0.225^* * Significant at 1%;
T					0.027^* * Significant at 1%;
GDFI					0.076
R2	28.9	28.8	28.9	55.9	30.3
n. obs.	380	380	375	191	328

mrihepu	(1)	(2)	(3)	(4)	(5)	(6)
Const.	-41.66	-31.58	44.88	-4.773	-16.52	-28.63
GDPpc	15.232^* * Significant at 1%;	12.463^* * Significant at 1%;	5.951^* * Significant at 1%;	10.841^* * Significant at 1%;	11.201^* * Significant at 1%;	11.855^* * Significant at 1%;
Gge		0.407^* * Significant at 1%;	0.259^ significant at 5%;	0.297^ significant at 5%;	0.417^* * Significant at 1%;	0.362^ significant at 5%;
Gini			-0.355^ significant at 5%;
EF				-26.390
PRI					-1.486
LOI						0.470
R2	42.5	47.0	43.8	49.8	47.3	48.3
n. obs.	328	231	149	227	222	190

Irpse mrihepu	(7)	(8)	(9)	(10)	(11)
Const.	-32.09	-21.42	81.56	89.82	-44.13
GDPpc	12.525^* * Significant at 1%;	9.207^* * Significant at 1%;	8.416^* * Significant at 1%;	6.212^* * Significant at 1%;	13.265^* * Significant at 1%;
Gge	0.395^* * Significant at 1%;	0.451^* * Significant at 1%;	0.677*	0.199^* ***** significant at 10%	0.244^ significant at 5%;
RF	0.688
UP		0.255^* * Significant at 1%;
(0,15)			-2.059^* * Significant at 1%;
(65,…)			-3.272^* * Significant at 1%;
EA				-1.039^* * Significant at 1%;
ES				-0.770^* * Significant at 1%;
T					0.138^* * Significant at 1%;
GDFI					-0.073
R2	47.7	48.4	52.3	55.9	29.6
n. obs.	229	231	223	194	215

	Irpse	Dorpse	Mrihepu
v1 (coefficient)	1.859	3.118	26.158
t-stat	0.31	0.50	3.56
P > \|t\|	0.756	0.618	0.000

	Irpse	dorpse	Mrihepu
u1 (coefficient)	0.322	0.218	0.827
t-stat	1.98	1.57	2.58
P > \|t\|	0.057	0.12	0.011

Name	Description	Source
Dor	Dropout rate	Barro-Lee Data Set
pse
dorpse	Public education expenditures, % gdp
Dor/pse	WDI 2000
EA	Employment agriculture, % total employment	WDI 2000
ES	Employment services, % total employment	WDI 2000
EF	Index ethnic fractionalization	Alesina et al. (2003)Alesina, Alberto, Arnaud Devleeschauwer, William Easterly, Sergio Kurlat, and Romain Wacziarg. 2003. Fractionalization. Journal of Economic Growth 8 (2): 155-194.
Gge	Central government expenditures, % GDP	WDI 2000
Gini	Gini index	WDI 2000
GFDI	Gross foreign direct investment, % GDP	WDI 2000
hepu	Public Health expenditures, % GDP	WDI 2000
ir
irpse	Illiteracy rate, adult (above 15)
Ir/pse	WDI 2000
GDPpc	GDP constant prices 1995 US$, per capita	WDI 2000
LOI	Law and order index	Freedom House (2003)Freedom House. 2003. Freedom House country ratings. New York: Freedom House. http://www.freedomhouse.org http://www.freedomhouse.org...
mri
mrihepu	Infant mortality rate
Mri/hepu	WDI 2000
(0,15)	Population [0, 15[ % total population	WDI 2000
(65,…)	Population 65, % total population	WDI 2000
PRI	Political rights index	Freedom House (2003)Freedom House. 2003. Freedom House country ratings. New York: Freedom House. http://www.freedomhouse.org http://www.freedomhouse.org...
Religious fractionalization RF	Religious fractionalization index	La Porta et al. (1999)La Porta, Rafael, Florencio Lopez-de-Silanes, Andre Shleifer, and Robert Vishny. 1999. The quality of government. The Journal of Law Economics and Organization 15 (1): 222-79.
T	Exports + Imports, % gdp	WDI 2000
UP	Urban Population, % total population	WDI 2000

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[TFN1] ^*
Significant at 1%;

[TFN2] ^**
significant at 5%;

[TFN3] ^***
significant at 10%