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Public sector efficiency, foreign aid and small island developing states

  1. Simon Feeny1,*,
  2. Mark Rogers2

Article first published online: 29 APR 2008

DOI: 10.1002/jid.1475

Issue

Journal of International Development

Journal of International Development

Volume 20, Issue 4, pages 526–546, May 2008

Additional Information

How to Cite

Feeny, S. and Rogers, M. (2008), Public sector efficiency, foreign aid and small island developing states. J. Int. Dev., 20: 526–546. doi: 10.1002/jid.1475

Author Information

  1. 1

    School of Economics, Finance and Marketing, RMIT University, Melbourne, Australia

  2. 2

    Harris Manchester College, University of Oxford, Oxford, UK

*School of Economics, Finance and Marketing, RMIT University, Level 12, 239 Bourke Street, Melbourne, VIC 3000, Australia.

Publication History

  1. Issue published online: 29 APR 2008
  2. Article first published online: 29 APR 2008

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Keywords:

  • public sector expenditures;
  • efficiency;
  • life expectancy;
  • school enrolments;
  • JEL classification codes: H11;
  • H51;
  • H52

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. Copyright © 2008 John Wiley & Sons, Ltd.

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