Assessing the determinants of government spending efficiency in Africa

Future Business Journal

Table 7 Frontier model for government efficiency.

Dep: HDI	Coefficient	Dep: HDI	Coefficient	Dep: HDI	Coefficient
Frontier	Coefficient	Frontier	Coefficient	Frontier	Coefficient
African Countries		Resource-rich African Countries		Non-resource-rich African Countries
GOV	0.003(0.001)***	GOV	0.004(0.0008)***	GOV	0.006(0.0009)***
LAB	− 0.009(0.001)***	LAB	− 0.014(0.0008)***	LAB	− 0.0069(0.001)***
CAP	0.001(0.000)***	CAP	0.002(0.0003)***	CAP	0.002(0.0006)***
Diagnostics		Diagnostics		Diagnostics
Mu	0.899(0.969)	Mu	3.882(1.928)**	Mu	0.9559(0.968)
Log likelihood	1589.0268	Log likelihood	995.2863	Log likelihood	650.6517
Prob. Value	0.0000	Prob. Value	0.0000	Prob. Value	0.0000
Sigma_U²	0.1584	Sigma_U²	0.1385	Sigma_U²	0.1309
Sigma_V²	0.000096	Sigma_V²	0.0004	Sigma_V²	0.000625
Gamma	0.9277	Gamma	0.9475	Gamma	0.9354

HDI human development index, GOV government spending, LAB labour productivity, CAP gross fixed capital formation
Significant values at 1%, 5% and 10% for ***, ** and * respectively