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

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.

► This paper established a positive relationship between a country's governance quality and public sector efficiency in policy areas of administration, infrastructure, and stability. ► The efficiency in the policy area of education does not relate to governance. ► The reason of highlight 2 is that any inputs and outputs in education may be affected by a number of social, cultural and economic factors.