Public Spending and Outcomes: Does Governance Matter?

This paper studies the links between public spending, governance, and outcomes. We examine the role of governance--measured by the level of corruption and the quality of bureaucracy--in determining the efficacy of public spending in improving human development outcomes. Our analysis contributes to o...

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Main Authors:	Rajkumar, Andrew Sunil, Swaroop, Vinaya
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Bureaucracy Administrative Processes in Public Organizations Corruption D730 Structure, Scope, and Performance of Government H110 National Government Expenditures and Related Policies: General H500 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Fiscal and Monetary Policy in Development O230
Online Access:	http://hdl.handle.net/10986/4859

id	okr-10986-4859
recordtype	oai_dc
spelling	okr-10986-48592021-04-23T14:02:20Z Public Spending and Outcomes: Does Governance Matter? Rajkumar, Andrew Sunil Swaroop, Vinaya Bureaucracy Administrative Processes in Public Organizations Corruption D730 Structure, Scope, and Performance of Government H110 National Government Expenditures and Related Policies: General H500 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Fiscal and Monetary Policy in Development O230 This paper studies the links between public spending, governance, and outcomes. We examine the role of governance--measured by the level of corruption and the quality of bureaucracy--in determining the efficacy of public spending in improving human development outcomes. Our analysis contributes to our understanding of the relationship between public spending, governance and outcomes, and helps explain the surprising result that public spending often does not yield the expected improvement in outcomes. We show empirically that the differences in the efficacy of public spending can be largely explained by the quality of governance. Public health spending lowers child mortality rates more in countries with good governance. Similarly, public spending on primary education becomes more effective in increasing primary education attainment in countries with good governance. More generally, public spending has virtually no impact on health and education outcomes in poorly governed countries. These findings have important implications for enhancing the development effectiveness of public spending. The lessons are particularly relevant for developing countries, where public spending on education and health is relatively low, and the state of governance is often poor. 2012-03-30T07:30:05Z 2012-03-30T07:30:05Z 2008 Journal Article Journal of Development Economics 03043878 http://hdl.handle.net/10986/4859 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Bureaucracy Administrative Processes in Public Organizations Corruption D730 Structure, Scope, and Performance of Government H110 National Government Expenditures and Related Policies: General H500 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Fiscal and Monetary Policy in Development O230
spellingShingle	Bureaucracy Administrative Processes in Public Organizations Corruption D730 Structure, Scope, and Performance of Government H110 National Government Expenditures and Related Policies: General H500 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Fiscal and Monetary Policy in Development O230 Rajkumar, Andrew Sunil Swaroop, Vinaya Public Spending and Outcomes: Does Governance Matter?
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	This paper studies the links between public spending, governance, and outcomes. We examine the role of governance--measured by the level of corruption and the quality of bureaucracy--in determining the efficacy of public spending in improving human development outcomes. Our analysis contributes to our understanding of the relationship between public spending, governance and outcomes, and helps explain the surprising result that public spending often does not yield the expected improvement in outcomes. We show empirically that the differences in the efficacy of public spending can be largely explained by the quality of governance. Public health spending lowers child mortality rates more in countries with good governance. Similarly, public spending on primary education becomes more effective in increasing primary education attainment in countries with good governance. More generally, public spending has virtually no impact on health and education outcomes in poorly governed countries. These findings have important implications for enhancing the development effectiveness of public spending. The lessons are particularly relevant for developing countries, where public spending on education and health is relatively low, and the state of governance is often poor.
format	Journal Article
author	Rajkumar, Andrew Sunil Swaroop, Vinaya
author_facet	Rajkumar, Andrew Sunil Swaroop, Vinaya
author_sort	Rajkumar, Andrew Sunil
title	Public Spending and Outcomes: Does Governance Matter?
title_short	Public Spending and Outcomes: Does Governance Matter?
title_full	Public Spending and Outcomes: Does Governance Matter?
title_fullStr	Public Spending and Outcomes: Does Governance Matter?
title_full_unstemmed	Public Spending and Outcomes: Does Governance Matter?
title_sort	public spending and outcomes: does governance matter?
publishDate	2012
url	http://hdl.handle.net/10986/4859
_version_	1764393021395173376

Public Spending and Outcomes: Does Governance Matter?

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