The influence of governance on public sector efficiency: A cross-country analysis

Abstract

This paper examines whether governance quality affects public sector efficiency in the policy areas of administration, education, infrastructure, and stability. Using cross-country evidence, we find that a country's measures of governance quality are positively and significantly associated with public sector efficiency in the policy areas of administration, infrastructure, and stability. However, regression results suggest that a country's governance quality cannot affect efficiency in the policy area of education, even after controlling for some explanatory variables.