Assessing the determinants of government spending efficiency in Africa

Future Business Journal

Table 8 Drivers of government spending efficiency in African countries

DEP VAR: EFF	DEP VAR: government spending efficiency
DEP VAR: EFF	TFE	TFE_NRC	FEM	REM_NRC	PCSE	PCSE_NRC
GOV	− 0.019 (0.040)	− 0.0592 (0.041)	− 0.002 (0.000)***	− 0.0003 (0.0002)	− 0.001 (0.0002)***	− 0.001 (0.0002)***
GDP	0.000 (0.000)***	0.000 (0.000)**	− 0.000 (0.000)	0.000 (0.000)***	0.000 (0.000)***	0.0000 (0.000)***
COR	1.119 (0.717)	0.028 (0.893)	0.0051 (0.0038)	0.0031 (0.0039)	0.0073 (0.0024)***	0.0012 (0.002)
EFFEC	− 1.837 (0.677)***	− 1.633 (0.623)***	0.0074 (0.004)**	− 0.0152 (0.004)***	− 0.0074 (0.0021)***	− 0.0086 (0.002)***
RENT	− 0.021 (0.022)		0.0001 (0.0001)		0.00008 (0.00008)
COL	0.112 (0.015)***		0.0029 (0.000)***		0.0014 (0.0002)***
DUM_RE	− 0.014 (0.516)				− 0.0036 (0.0022)
Cons	− 0.899 (0.969)	3.645 (0.966)***	0.8568 (0.005)***	0.962 (0.004)***	0.9164 (0.011)***	0.9742 (0.006)***
No of Group	40	40	40	40	40	40
Obs. Per Group	21	21	21	21	21	21
Wald Chi	256.80***	207.18***		19.66***	91.70***	50.48***
No of Obs	840	840	840	840	840	840
F-statistic			166.08***
R-Square			0.557	0.166	0.991	0.9911
Haussmann			252.58***	3.96
CS Dependence			26.757***	77.132***

TFE total fixed effect, FEM fixed effect model, REM random effect model and PCSE panel corrected standard error, while NRC represent models without resource rent and colonial orientation. GOV government spending, GDP size of an economy, RENT resources rent, COR control of corruption, EFFE government effectiveness, COL colonial legacy, DUM_RE dummy variable, EFF efficiency
*** and ** represent 1% and 5% levels of significance with standard error in parenthesis