Ethnic Diversity and the Efficiency of Public Spending in Developing Countries

Abstract : This paper examines the effect of ethnic diversity on the efficiency of public spending in a set of developing countries. For this purpose, we use Data Envelopment Analysis to assess the efficiency of public spending in the sectors of health, education and infrastructure in 77 developing countries over the period 1996-2012. Further, we investigate the effect of ethnic diversity on the cross country variation in efficiency. Two main findings emerge. First, barely 12% of the sample of countries under study makes an efficient use of public expenditure. Second, no matters the level of aggregation, ethnic polarization is positively associated with higher efficiency. In contrast, ethnic fractionalization does have a negative or at the best no effect on efficiency, especially at the finest level of disaggregation.
Document type :
Preprints, Working Papers, ...
Complete list of metadatas

Cited literature [42 references]  Display  Hide  Download

https://halshs.archives-ouvertes.fr/halshs-01161599
Contributor : Cerdi Etudes & Documents - Publications <>
Submitted on : Monday, June 8, 2015 - 5:14:18 PM
Last modification on : Thursday, January 11, 2018 - 6:17:19 AM
Long-term archiving on : Tuesday, April 25, 2017 - 4:50:55 AM

Identifiers

  • HAL Id : halshs-01161599, version 1

Collections

Citation

Urbain Thierry Yogo. Ethnic Diversity and the Efficiency of Public Spending in Developing Countries. 2015. ⟨halshs-01161599⟩

Share

Metrics

Record views

211

Files downloads

671