Public sector efficiency, foreign aid and small island development states

Simon Feeny, Mark Rogers

Research output: Contribution to journalArticle

Abstract

This paper examines the efficiency of public sector expenditures and foreign aid at achieving social sector outcomes in Small Island Developing States (SIDS). Efficiency is estimated using a Stochastic Production Function (SPF) approach and panel data since 1990. A second stage of the analysis examines the determinants of efficiency. Results indicate that the efficiency of aid and public sectors at improving life expectancy has deteriorated during the 1990s but efficiency at improving school enrolments has increased. Higher levels of governance are associated with higher efficiency. There is also evidence to suggest that efficiency is lower in SIDS, as well as in Sub-Saharan Africa.
Original languageEnglish
Pages (from-to)526-546
Number of pages21
JournalJournal of International Development
Volume20
Issue number4
Early online date29 Apr 2008
DOIs
Publication statusPublished - May 2008

Keywords

  • public sector expenditures
  • JEL classification code
  • school enrolments
  • life expectancy
  • efficiency

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