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Public sector efficiency: evidence for new EU member states and emerging markets

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In this article, we analyse public sector efficiency in the new member states of the EU compared to that in emerging markets. After a conceptual discussion of expenditure efficiency measurement, we compute efficiency scores and rankings by applying a range of measurement techniques. The study finds that expenditure efficiency across new EU member states is rather diverse especially as compared to the group of top performing emerging markets in Asia. Econometric analysis shows that higher income, civil service competence and education levels as well as the security of property rights seem to facilitate the prevention of inefficiencies in the public sector.

Document Type: Research Article


Affiliations: 1: European Central Bank, D-60311 Frankfurt am Main, Germany,Department of Economics, ISEG/TULisbon Technical University of Lisbon, UECE Research Unit on Complexity and Economics, 1249-078 Lisbon, Portugal 2: European Central Bank, D-60311 Frankfurt am Main, Germany 3: Inter-American Development Bank, Washington, DC, USA

Publication date: July 1, 2010

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