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Investing in public investment: an index of public investment efficiency

Abstract

Pritchett (J Econ Growth 5:361–384, 2000) convincingly argued that the difference between investment cost and capital value is of first-order empirical importance especially for developing countries where public investment is the primary source of investment. This paper constructs a public investment efficiency index that captures the institutional environment underpinning public investment management across four different stages: project appraisal, selection, implementation, and evaluation. Covering 71 countries, including 40 low-income countries, the index allows for benchmarking across regions and country groups and for nuanced policy-relevant analysis and identification of specific areas where reform efforts could be prioritized. Research applications are outlined.

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Correspondence to Chris Papageorgiou.

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Dabla-Norris, E., Brumby, J., Kyobe, A. et al. Investing in public investment: an index of public investment efficiency. J Econ Growth 17, 235–266 (2012). https://doi.org/10.1007/s10887-012-9078-5

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  • DOI: https://doi.org/10.1007/s10887-012-9078-5

Keywords

  • Public investment
  • Public investment management
  • Project appraisal
  • Selection
  • Implementation
  • Evaluation
  • Growth

JEL Classification

  • O19
  • O23
  • O47