PUBLIC SECTOR GOVERNANCE AND SERVICE DELIVERY EFFICIENCY: A STUDY OF ADMINISTRATIVE REFORMS IN DEVELOPING NATIONS

Abstract

Governance in the public sector is important in determining the performance of service delivery in the developing countries. This is irrespective of the fact that there is little empirical data on whether governance gains are being converted to efficiency gains that can be measured despite the massive administrative reforms introduced within the last twenty years. This paper will analyses how the quality of governance influences the efficiency of the service delivery in 52 developing nations between 2000 and 2023. The study uses panel fixed-effects and system GMM estimators to deal with endogeneity and country-specific heterogeneity using the governance indicators provided by the World Bank and the service outcome data provided by the United Nations. The higher the quality of governance, the more efficient delivery is. Control of corruption and regulatory quality have the most positive impacts in terms of governance dimensions. More so, the governance- efficiency relationship is mediated by administrative reform projects in part, especially in developing economies with middle incomes. The results have an implication in the literature as they represent current cross-country panel evidence of the governance service delivery nexus. The policy implications are strengthening the institution and enforcing anti-corruption and implementing sustained reforms to enhance the performance of the public sector in developing countries.