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Policy Research Working Paper 8586 Efficiency of Public Spending in Education, Health, and Infrastructure An International Benchmarking Exercise Santiago Herrera Abdoulaye Ouedraogo Macroeconomics, Trade and Investment Global Practice September 2018 WPS8586 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

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Page 1: Efficiency of Public Spending in Education, Health, …...Policy Research Working Paper 8586 Efficiency of Public Spending in Education, Health, and Infrastructure An International

Policy Research Working Paper 8586

Efficiency of Public Spending in Education, Health, and Infrastructure

An International Benchmarking Exercise

Santiago HerreraAbdoulaye Ouedraogo

Macroeconomics, Trade and Investment Global Practice September 2018

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Page 2: Efficiency of Public Spending in Education, Health, …...Policy Research Working Paper 8586 Efficiency of Public Spending in Education, Health, and Infrastructure An International

Produced by the Research Support Team

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Policy Research Working Paper 8586

Governments of developing countries typically spend between 20 and 30 percent of gross domestic product. Hence, small changes in the efficiency of public spending could have a major impact on aggregate productivity growth and gross domestic product levels. Therefore, measuring efficiency and comparing input-output combinations of different decision-making units becomes a central chal-lenge. This paper gauges efficiency as the distance between observed input-output combinations and an efficiency frontier estimated by means of the Free Disposal Hull and Data Envelopment Analysis techniques. Input-inefficiency (excess input consumption to achieve a level of output) and output-inefficiency (output shortfall for a given level of inputs) are scored in a sample of 175 countries using

data from 2006–16 on education, health, and infra-structure. The paper verifies empirical regularities of the cross-country variation in efficiency, showing a negative association between efficiency and spending levels and the ratio of public-to-private financing of the service provision. Other variables, such as inequality, urbanization, and aid dependency, show mixed results. The efficiency of capi-tal spending is correlated with the quality of governance indicators, especially regulatory quality (positively) and per-ception of corruption (negatively). Although no causality may be inferred from this exercise, it points at different factors to understand why some countries might need more resources than others to achieve similar education, health, and infrastructure outcomes.

This paper is a product of the Macroeconomics, Trade and Investment Global Practice. It is part of a larger effort by the World Bank to provide open access to its research and make a contribution to development policy discussions around the world. Policy Research Working Papers are also posted on the Web at http://www.worldbank.org/research. The authors may be contacted at [email protected] and [email protected].

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Efficiency of Public Spending in Education, Health, and Infrastructure: An International Benchmarking Exercise1

Santiago Herrera Abdoulaye Ouedraogo

JEL Classification: C14, H5, H51, H52, H54, I1, I2, E62

Keywords: efficiency frontiers, efficiency of public spending, education expenditure, health expenditure, infrastructure spending.

1 The paper carries the names of the authors and should be cited accordingly. It follows closely the presentation of Herrera-Pang (2005) and uses the data and STATA codes available in the WPS website. The findings, interpretations and conclusions are the authors’ responsibility and do not necessarily represent the view of the World Bank or its Executive Directors.

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I. Introduction

Governments of developing countries typically spend resources equivalent to between 15 and 30 percent of GDP. Hence, small changes in the efficiency of public spending could have a significant impact on GDP and on the attainment of the government’s objectives. The first challenge faced by stakeholders is measuring efficiency. This paper attempts such quantification and verifies empirical regularities in the cross country-variation in the efficiency scores. The paper has four chapters. The first one presents the methodology that defines efficiency as the distance from the observed input-output combinations to an efficient frontier. This unobservable frontier is estimated using the Free Disposable Hull (FDH) and Data Envelopment Analysis (DEA) techniques. The exercise focuses on health and education expenditure because they absorb the largest share of most countries’ budgets, and because it facilitates comparison of results with existing literature.2 We extend the analysis by measuring efficiency of capital spending in achieving several infrastructure output indicators. The second chapter estimates the efficiency frontiers for 14 education output indicators and seven health output indicators, based on a sample of data for 175 countries for the period 2006-2016, and six infrastructure output indicators based on a sample of 150 countries using 2007-2015 data. Both input-efficiency (excess input consumption to achieve a level of output) and output-efficiency (output shortfall for a given level of inputs) are scored. The chapter presents both the single input-single-output and the multiple-inputs multiple-outputs frameworks. The third chapter explores empirical regularities in the cross-country variation in the efficiency scores. Using a Tobit panel approach, this chapter explores the relationship between efficiency scores and expenditure levels, the wage bill as a share of the total budget, the degree of urbanization, and aid-dependency. The fourth and last chapter summarizes the conclusions. II. Measuring Efficiency: Methodologies and Overview of the Literature This chapter describes the empirical methods used in this paper to measure efficiency and surveys the literature more directly related to the analysis of public expenditure efficiency. Empirical and theoretical measures of efficiency are based on ratios of observed output levels to the maximum that could have been obtained given the inputs utilized. This maximum constitutes the efficient frontier which will be the benchmark for gauging the relative efficiency of the observations. There are multiple techniques to estimate this frontier and they have been applied to examine the efficiency of public spending in different contexts. These are the topics of the next two sections. 2 This paper follows closely the Herrera-Pang (2005) presentation to facilitate intertemporal comparisons.

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II.1. Methods for Measuring Efficiency

The origin of the discussion of efficiency measurement dates to Farell (1957), who identified two different ways in which productive agents could be inefficient: one, they could use more inputs than technically required to obtain a given level of output, or two, they could use a sub-optimal input combination given the input prices and their marginal productivities. The first type of inefficiency is termed technical inefficiency while the second one is known as allocative inefficiency. These two types of inefficiency can be represented graphically by means of the unit isoquant curve in Figure 1. The set of minimum inputs required for a unit of output lies on the isoquant curve YY’. An agent’s input-output combination defined by bundle P produces one unit of output using input quantities X1 and X2. Since the same output can be achieved by consuming less of both inputs along the radial back to bundle R, the segment RP represents the inefficiency in resource utilization. The technical efficiency (TE), input-oriented, is therefore defined as TE = OR/OP. Furthermore, the producer could achieve additional cost reduction by choosing a different input combination. The least cost combination of inputs that produces one unit of output is given by point T, where the marginal rate of technical substitution is equal to the input price ratio. To achieve this cost level implicit in the optimal combination of inputs, input use needs to be contracted to bundle S. The input allocative efficiency (AE) is defined as AE = OS/OR.

Figure 1 Technical and Allocative Inefficiency

This paper focuses on technical efficiency, due to the lack of comparable input prices across the countries. This concept of efficiency is narrower than the one implicit in social welfare analysis. That is, countries may be producing the wrong output very efficiently (at low cost). We abstract from this consideration (discussed by Tanzi 2004), focusing on the narrow concept of efficiency.

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Numerous techniques have been developed to estimate the unobservable efficient frontier (in this case the isoquant YY”). These may be classified using several taxonomies. The two most widely used catalog methods into parametric or non-parametric, and into stochastic or deterministic. The parametric approach assumes a specific functional form for the relationship between the inputs and the outputs as well as for the inefficiency term incorporated in the deviation of the observed values from the frontier. The non-parametric approach calculates the frontier directly from the data without imposing specific functional restrictions. The first approach is based on econometric methods, while the second one uses mathematical programming techniques. The deterministic approach considers all deviations from the frontier explained by inefficiency, while the stochastic focus considers those deviations a combination of inefficiency and random shocks outside the control of the decision maker.

This paper uses non-parametric methods to avoid assuming specific functional forms for the relationship between inputs and outputs or for the inefficiency terms. Other papers use the parametric approach (Greene (2003) Grigio (2013, 2014). The remainder of the section briefly describes the two methods: Free Disposable Hull (FDH) and Data Envelopment Analysis (DEA). The FDH method imposes the least amount of restrictions on the data, as it only assumes free-disposability of resources. Figure 2 illustrates the single-input single-output case of the FDH production possibility frontier. Countries A and B use inputs XA and XB to produce outputs YA and YB, respectively. The input efficiency score for country B is defined as the quotient XA/XB. The output efficiency score is given by the quotient YB/YA. A score of one implies that the country is on the frontier. An input efficiency score of 0.75 indicates that this country uses inputs in excess of the most efficient producer to achieve the same output level. An output efficiency score of 0.75 indicates that the inefficient producer attains 75 percent of the output obtained by the most efficient producer with the same input intake. Multiple input and output efficiency tests can be defined in an analogous way.

Figure 2 Free Disposal Hull (FDH) production possibility frontier

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The second approach, Data Envelopment Analysis (DEA), assumes that linear combinations of the observed input-output bundles are feasible. Hence it assumes convexity of the production set to construct an envelope around the observed combinations. Figure 3 illustrates the single input-single output DEA production possibility frontier. In contrast to the vertical step-ups of the FDH frontier, the DEA frontier is a piecewise linear locus connecting all the efficient decision-making units (DMU). The feasibility assumption, displayed by the piecewise linearity, implies that the efficiency of C, for instance, is not only ranked against the real performers A and D, called the peers of C in the literature, but also evaluated with a virtual decision maker, V, which employs a weighted collection of A and D inputs to yield a virtual output. DMU C, which would have been efficient by FDH, now lies below the variable returns to scale (VRS, further defined below) efficiency frontier, XADF, by DEA ranking. This example shows that FDH efficiency scores are higher than DEA ones. The input-oriented technical efficiency of C is now defined by TE = YV/YC.

Figure 3 DEA production possibility frontier

If constant returns to scale (CRS) characterize the production set, the frontier may be represented by a ray extending from the origin through the efficient DMU (ray OA). By this standard, only A would be rated efficient. The important feature of the XADF frontier is that this frontier reflects variable returns to scale. The segment XA reflects locally increasing returns to scale (IRS), that is, an increase in the inputs results in a greater than proportionate increase in output. Segments AD and DF reflect decreasing returns to scale. It is worth noticing that constant returns to scale technical efficiency (CRSTE) is equal to the product of variable returns to scale technical efficiency (VRSTE) and scale efficiency (SE). Accordingly, DMU D is technically efficient but scale inefficient, while DMU C is neither technically efficient nor scale efficient. The scale efficiency of C is calculated as YN/YV. For more detailed exploration of returns to scale, readers are referred to Charnes, Cooper, and Rhodes (1978) and Banker, Charnes, and Cooper (1984), among others.

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The limitations of the non-parametric method derive mostly from the sensitivity of the results to sampling variability, to the quality of the data and to the presence of outliers. This led the literature to explore the relationship between statistical analysis and non-parametric methods (Simar and Wilson, 2000) and propose solutions like constructing confidence intervals for the efficiency scores using asymptotic theory in the single input case (for input-efficiency estimators) or single-output (in the output efficiency) case, given these are shown to be maximum likelihood estimators (Banker, 1993 and Goskpoff, 1996). For multiple input-output cases the distribution of the efficiency estimators is unknown or quite complicated and analysts recommend constructing the empirical distribution of the scores by means of bootstrapping methods (Simar and Wilson, 2000). Other solutions to the outlier or noisy data consist in constructing a frontier that does not envelop all the data points, building an expected minimum input function or expected maximum output functions (Cazals, Florens and Simar, 2002, and Wheelock and Wilson, 2003). Another limitation of the method, at least in the context of this paper, is the inadequate treatment of dynamics, given the lag between input consumption (public expenditure) and output production (health and education outcomes). II.2. Overview of Precursor Papers There is abundant literature measuring productive efficiency of diverse types of decision-making units. For instance, there are papers measuring efficiency of museums (Bishop and Brand, 2003), container terminals (Cullinane and Song, 2003; Herrera-Pang 2006), electric generation plants (Cherchye and Post 2001), banks (Wheelock and Wilson, 2003), schools (Worthington, 2001) and hospitals (Bergess and Wilson, 1998), among others. Few papers, however, analyze aggregate public-sector spending efficiency using cross-country data. These are the direct precursors of this paper and have been surveyed elsewhere.3 The more recent directly related papers are Herrera-Pang (2005), which use non-parametric methods (FDH and DEA) to gauge efficiency for numerous health and education output indicators. Using a large set of developing countries for the period 1996-2002, the paper estimates efficiency scores in a first stage and in a second stage they use panel methods to explore the correlates of efficiency variation across countries. One of the common results of that paper and previous literature is that countries with low attainment in results in health or education show up with high efficiency scores. The apparently counterintuitive result is due to some countries’ low spending levels and low education attainment results, which are considered as the “origin” of the efficiency frontier: though the country appears as efficient because the peer countries spend more (in the OECD context), its output levels are also higher and probably more desirable from a broader perspective. The next chapters discuss this topic and report similar results for other countries.

3 Gupta and Verhoeven (2001), Evans and Tandon (2000), Jarasuriya and Woodon (2002) Greene (2003a), Afonso, Schuknecht and Tanzi (2003), Afonso and St. Aubyn (2004) were surveyed in Herrera-Pang (2005).

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Afonso, Romero and Monsalve (2013) focus exclusively on Latin American and Caribbean countries, and define aggregate measures of public sector output, which include education, health infrastructure, macro stability, and economic performance. The aggregations are weighted and unweighted. Given the complexity of the aggregations, their results are not directly comparable to Herrera-Pang or Grigoli’s results described below. But their findings in general show output efficiency scores higher than input efficiency scores, like the Herrera-Pang results for LAC, especially in health. Grigoli and Kapsoli (2013) use stochastic frontier analysis (SFA) to examine efficiency in health spending in a sample of 80 countries. Using a single indicator for health outcomes, the health adjusted life expectancy (HALE) average for 2006-2010, and lagged values of spending and other correlates (average of 2001-2005), the authors compute efficiency scores. This is an innovative way to capture the dynamics in the relationship between spending and health outcomes, but still imposes restrictions on the data. The reported scores are high, and the authors acknowledge the fact when reporting average efficiency scores of .94 compared to significantly lower scores of .81 of other studies. That average also seems high compared to results presented in this paper. The efficiency rankings of Grigoli and Kapsoli (2013) are also strange, as the efficiency scores of Trinidad and Tobago, for instance, ranked within the most efficient group in Herrera-Pang (2005) and Afonso et.al (2013), show up in the third quartile of the efficiency distribution. Grigoli (2014) uses an envelopment methodology, variant of the DEA, designed by Wagstaff and Wang (2011), to examine efficiency of education spending. One of the advantages of this approach is that it allows dealing with heterogeneity across groups, as different frontiers are constructed for different groups of countries. It also uses a LOWESS method, which helps dealing with the measurement error, data outliers, and stochastic nature of the problem at hand. The added complexity comes at a cost, as the study uses only one education outcome variable, net secondary enrollment. The efficiency scores have a larger dispersion and little information is given on the distribution of the scores, but many countries about 15% of the total, are on the efficiency frontier. Perelman et al. (2017) use two concepts, performance and productivity, to compare Latin American countries’ efficiency in education and health spending. The performance concept compares outcomes without considering resource constraints. Their concept of productivity links the outcomes to the resources, like the efficiency concept used in this paper and other literature in this review. For education outcomes, the authors use the PISA scores exclusively, while the health outcome is a human development index which is an aggregation of several health outcomes.4 The education efficiency scores of the Perelman et al. study are, on average, .63 for input-efficiency and .75 for output-

4 The education outcome considers only six LAC countries. The health outcomes used to compute the human development index are Disability-Adjusted Life Years (DALY), the probability of dying between 30 and 70 years old from cardiovascular, cancer, diabetes, or chronic respiratory diseases (PROB); the percentage of out-of-pocket expenditure in total health expenditure as an indicator of financial protection (FIPR); and an indicator of equity in health EQTY.

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efficiency. In health, the average input-efficiency is .59 and output-efficiency is .90. These results match the pattern found in other studies, including the present one, of output-efficiency exceeding input-efficiency, and that of health efficiency tending to be higher than education, especially on the output measure.5 III. Empirical Results

III.1. Input and Output Indicators: Description, Assumptions and Limitations Cross-country comparisons assume some homogeneity across the world in the production technology of health, education, and infrastructure.6 There are two particular aspects in which the homogeneity assumption is important. First, the comparison assumes that there is a small number of factors of production that are the same across countries. Any omission of an important factor will yield as a result a high efficiency ranking of the country that uses more of the omitted input. Second, the comparison requires that the quality of the inputs is the same, with the efficiency scores biased in favor of countries where the quality is of higher grade. Factor heterogeneity will not be a problem if it is evenly distributed across countries. It will be problematic if there are differences between countries in the average quality of a factor (Farrell, 1957). The exercise that we present suffers from this limitation, given that the main input in both production technologies is used more intensively in richer countries (with higher per-capita GDP). The main input is public spending per capita on education, health and infrastructure, and it shows a clear positive association with per-capita GDP (Figures 4A, 4B and 4C).7 This positive association may be explained by several factors. One of them is the Balassa-Samuelson effect, according to which price levels in wealthier countries tend to be higher than in poorer countries.8 This applies to both final goods and factor prices. Thus, the price of the same service (health or education, for instance) will be higher in the country with higher GDP. Similarly, wages in the relatively richer counties are higher, given the higher marginal productivity of labor, which will tend to increase costs, especially in labor-intensive activities such as health and education. 5 Averages of Perelman scores come from Tables 6 and 19. The order of magnitude of the averages is very similar to those reported in this study for the PISA scores of the same LAC country sample. The average reported in this study for education input efficiency is 0.67 and the output efficiency is .80. The LAC region health input efficiency score is .48 and output efficiency is .95, presented in tables in the next section. 6 See Table A.9 in Appendix A for the list of countries included in the study. 7 Education and health spending are measured in constant 2011 US dollars in PPP terms, and is an update of the figures presented in Herrera-Pang (2005), and the source is WDI from the World Bank. Capital spending comes from a different source, namely the IMF WEO. 8 The Balassa-Samuelson effect refers to the fact that price levels are higher in richer countries than in poorer countries. It can be shown that relative wages and relative prices are a function of the marginal productivity of labor in the traded goods. Given higher capital abundance in the richer countries, the productivity of labor tends to be higher in these countries, and hence will be wages and prices.

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The positive association (Figures 4A, 4B and 4C) can also be interpreted as evidence of the validity of Wagner’s hypothesis at the cross-country level. This hypothesis, postulates that there is a tendency for governments to increase their activities as economic activity increases. Since 1890 Wagner postulated that economic development implied rising complexities that required more governmental activity, or that the elasticity of demand for publicly provided services, in particular education, was greater than one. This hypothesis has been tested econometrically (Chang, 2002; Afonso et. al. 2017) in time series and cross-country settings, showing that this is not particular to the series used for the present study.

Figure 4. Public Expenditure on Education, Health and Capital and GDP (all per capita and in logs) 2009-2015

Figure 4A. Public Expenditure on Education and

GDP 2009-2015 Figure 4B. Public Expenditure on Health and GDP

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Figure 4C. Public Capital Spending and GDP 2007-2015

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Previous studies that measured the efficiency of public spending recognized the positive association and suggested alternative solutions. One possibility is to split the sample by groups of countries (Gupta and Verhoeven, 2001). We may partially control for this factor by excluding the industrialized nations from the sample, or by presenting the results clustered regionally (Africa (AFR), East Asia and Pacific (EAP), Eastern Europe and Central Asia (ECA), Latin America and Caribbean (LAC), Middle-East and North Africa (MNA) and South Asia (SAS)). A second alternative incorporates directly the per-capita GDP as a factor of production, jointly with expenditure and other inputs (Jarasuriya and Woodon 2002). The problem with this approach is that it combines variables derived from a production function approach, and hence with clear interpretation, with others (GDP per capita) that are difficult to interpret from any viewpoint. When the two types of variables are combined, their effects cannot be disentangled. We attempt to control for this factor by including GDP per capita as an explanatory variable in the “second stage” regressions presented in the last section. A third option consists in using as an input the orthogonal component of public expenditure to GDP.9 We estimated the efficiency scores using as input both the original and the orthogonalized variables. The goodness-of-fit of each model was gauged based 9 The orthogonalized expenditure variable is the residual of the linear regression between pubic expenditure and GDP per capita. Since residuals may take positive and negative values, the variable was right-shifted to avoid negative values to facilitate graphical presentation of the frontiers. The orthogonalization of capital spending was done using a log-log regression, as this transformation of the variables resulted in a distribution of the efficiency scores that produced a better fitness observed by comparing Fig. 5B (log-log) and the figure reported in the Appendix without the log transformation.

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on the frequency distribution of the inefficiency measures, as suggested by Farrell (1957) and Varian (1990). Comparing the distributions of the efficiency scores computed alternatively with the public expenditure or the orthogonalized value (Figures 5A and 5B), we see that the orthogonalization reduces the bias towards inefficiency (in the case of education, Fig. 5A) or towards efficiency (capital spending, Fig. 5B).10 Given this mitigation of the skewedness, the remainder of the paper considers the orthogonal component of expenditure as the input in all the efficiency score calculations.

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Figure 5B. Density of Efficiency Scores – Capital Spending-Overall Quality of Infrastructure

10 The efficiency scores depicted in Figs. 5A and 5B are FDH efficiency scores, one for input efficiency (5A) and the other for output efficiency (5B).

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This paper uses 14 indicators of education output, seven indicators of health output, and six indicators of infrastructure output.11 The education indicators are: primary school enrollment (gross and net), secondary school enrollment (gross and net), gross tertiary school enrollment, literacy of youth, average years of school, second level complete, PISA learning scores for math, reading and science and the WEF Indices for Quality of Match and Science Education, Quality of Primary Education, and Quality of the education system. Though the PISA country sample is limited, it is a numerical score. The WEF indices are computed for a significantly larger sample but have a limited range from 1-7. The correlation between the PISA learning scores and other output variables is high (.80 with average years of school and .78 with net primary school enrollment), as shown in Figure 6.12 The health output indicators are: life expectancy at birth, immunization (DPT13 and measles), and the disability-adjusted life expectancy (DALE), maternal survival rate, infant survival rates and Tuberculosis Free Population.14 For infrastructure output, we considered six indexes produced by the World Economic Forum: quality of overall infrastructure, quality of roads, quality of railroad infrastructure, quality of port infrastructure, quality of transport infrastructure, and quality of electricity supply. The cross-country comparisons with this set of indicators assume some form of data homogeneity, which might be problematic given the diversity of countries in the sample considered. Even for a more homogeneous group of countries, such as the OECD, there is call for caution when comparing expenditure levels in member countries (Jounard, et al. 2003). There is very little to do to overcome this limitation, except subdivide the sample into different groups. Probably a regional aggregation can be useful, but even at that level there may be extreme heterogeneity.

11 The data sources are: The World Bank World Development Indicators (WDI), Barro-Lee database, and Crouch and Fasih (2004), PISA, and the World Health Organization (Mathers et al, 2000). A complete list of variables and data sources can be found in Table A.10 of Appendix A. For capital spending the source is the WEO data base from the IMF and the infrastructure output indicators come from the World Economic Forum (WEF). 12 The correlation coefficients and Figure 6 exclude developed nations for the Crouch and Fasih (2004) sample. 13 DPT is Diphtheria-Pertussis and Tetanus 14 Maternal survival rates and infant survival rates are transformations of the mortality rates as follows: Maternal Survival Rate= (100000-Maternal Mortality Rate)/100000. The infant survival rate (ISR)=1000-Infant Mortality rate)/1000. Tuberculosis free population is a transformation of the incidence of tuberculosis variable (per 100,000 inhabitants).

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ALB

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Correlation: PISA Science and Average Years of School

Figure 6. Correlation between Learning Scores and Other Education Indicators

There are four other limitations arising from the variables and data selected for the analysis. The first one refers to the level of aggregation. While the exercises use aggregate public spending on health, education and capital spending as inputs, they use disaggregate measures of output, such as primary enrollment or secondary enrollment. Ideally, the input should have differentiated between primary and secondary education expenditures. Similarly, health care spending could be disaggregated into primary care level care and secondary level. The data can be disaggregated even further, by analyzing efficiency at the school or hospital levels. Second, there are omitted factors of production. This is especially true in education, as the paper did not consider private spending due to data constraints for developing nations. If this factor were used more intensively in a group of countries, then the efficiency scores (reported in the next section) would be biased favoring efficiency in that group. The third limitation arising from the data is the combination of monetary and non-monetary factors of production and outputs. The paper uses together with public expenditure, other non-monetary factors of production such as the ratio of teachers to students, in the case of education, or literacy of adults in the case of health and education. Other factors of production that could have been used were the physical number of teaching hours (in education) or the number of doctors or in-patient beds, as Afonso and St. Aubyn did for the OECD countries. However, inexistent data for many developing countries constrained the options. In the case of infrastructure output, the physical measures such as those used in Herrera-Pang for container ports are not available, hence we are limited to using indexes. A fourth limitation arising from the selected indicators is that these do not allow for a good differentiation between outputs and outcomes. For instance, most of the indicators of education, such as completion and enrollment rates, do not measure how much learning is taking place in a country. In education, this paper advances by considering the learning scores as one of the indicators. In health, other outcomes such as the number of sick-day leaves or the number of missed-school days because of health-related causes

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could be better reflections of outcomes. Two of the selected health output indicators, DPT and measles immunization, are delivered in vertical programs, that is, in campaigns that are relatively independent of basic health systems and therefore may not be good indicators of the actual quality of the health system. Additionally, in most countries, these two activities (immunization) account for very small fractions of the health budgets. Finally, the fact that life expectancy is influenced by diet, lifestyle, and a clean environment, that to the extent that are not included as factors of production may bias the efficiency scores. III.2. Single Input-Output Results

III.2.1. FDH and DEA Education Frontiers Figures 7a-d show both FDH and DEA efficiency frontiers for four of the 14 output indicators: gross primary school enrollment, secondary gross enrollment, quality of math and science education index (from WEF) and the PISA Science scores. Individual country efficiency scores for the four indicators are reported in Table A.1-2 of Appendix A.15 The graphical efficiency frontiers for other output indicators can be found in Appendix A (Figure A.1). Several results may be highlighted:

a. The input efficiency rankings (education) are robust to the output indicator selected, as implied by the Spearman rank-correlation coefficient (see Tables A.1 and A.3 in Appendix A), which is positive, significant and high. The range oscillates between .35 and .97. This result implies that countries ranked as efficient (or inefficient) per one indicator, are ranked similarly when other output indicators are used.

b. Despite the orthogonalization by GDP, the relatively rich countries tend to be in the more efficient group, especially when output efficiency is considered.

c. In general, output efficiency scores are higher than input efficiency scores.

15 The efficiency scores of all the indicators can be found at the MFM website indicated in footnote 1.

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Free Disposable Hull (FDH)

Data Envelopment Analysis (DEA)

AGO

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Data Source: World Bank WDI

Gross Primary Enrollment vs Education Expenditure

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Data Source: World Bank WDI

Gross Primary Enrollment vs Education Expenditure

(a.1) (a.2)

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Gross Secondary Enrollment vs Education Expenditure

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ALB

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Figure 7 Education Efficiency Frontier: Single Input and Single Output

d. Output-efficiency rankings also vary with the selected output indicators. The Spearman correlation coefficient of the output-efficiency scores (see Tables A.2 and A.4 in Appendix) show that these are robust to the selected indicator, though the range is higher (.16 to .90).

e. To grasp the order of magnitudes of the deviations from the efficiency frontier, and the disparity in efficiency across countries, we computed an average for all indicators for the groups of more efficient and least efficient countries (Table 1).16 The input-efficiency estimations indicate that a country in the bottom of the distribution could reach the same educational attainment levels by spending approximately 50 percent less. The output efficiency estimators indicate that, on average, with the prevailing expenditure level a typical country of this group could reach educational attainment levels more than twice as high (Table 1A).

Table 1. Education Attainment: Single Input, Single Output Country Clustering

Input-Efficient Output Efficient More efficient Italy, Kazakhstan, Lebanon,

Czech Republic, Slovak Republic, China, Republic of Korea

Austria, Finland, Kazakhstan, Italy, Canada, Lebanon, Czech Republic, Great Britain, Sweden, Republic of Korea

Least efficient Denmark, Norway, Sweden, Saudi Arabia, Namibia, Botswana, Moldova, Costa Rica

Angola, Mozambique, Burundi, Mauritania, Tanzania, Peru

16 These are simple averages of the top 10 and bottom 10 countries in each ranking.

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Table 1A. Education Attainment: Single Input, Single Output Efficiency Scores

Input-Efficient Output Efficient More efficient .89 .92 Least efficient .47 .39 f. This clustering exercise reveals (Table 1) that several developed economies, such

as Denmark, Norway and Sweden, appear within the least input-efficient category. This is due to the amount of spending these countries do. Resource-rich countries also appear in the inefficient group, such as Saudi Arabia, Botswana, Angola, and Mozambique. Mostly African countries populate this group. Among the more efficient group, Lebanon, Republic of Korea, China, Czech Republic, and Kazakhstan appear as both input and output efficient. Curiously, Sweden appears within the most output-efficient category. Explaining why these countries appear in each cluster requires more in-depth analysis, undertaken in the last section, which explores the association of efficiency scores with other variables.

g. It is critical to note that even if a country appears as efficient, there might still be a significant discrepancy between the observed output level and the desired or target output level. For instance, Azerbaijan, Lebanon and Romania appear as efficient countries on the FDH efficiency frontier or very close to it (Figure 7 a.1) because they spend relatively little on education; they are close to the origin of the frontier with low spending and low learning levels. But their PISA scores are far below those of countries that spend similar amounts but have significantly higher PISA scores, such as Italy or the Czech Republic. Within the LAC countries, Panama and Chile have the highest input efficiency scores, though Panama’s case is due to the low spending level effect discussed above. The important point is that the country moves along the efficiency frontier to the higher target output level. Countries can even improve efficiency by exploiting scale economies if they are operating in the increasing returns to scale zone of the production possibility frontier (output levels smaller than that of point A, Figure 3).

h. The regional aggregation of the efficiency scores shows that input-oriented scores (Table 2A) are lower than output-oriented scores (Table 2B).17 This is especially true in ECA, EAP, and MNA. In general, scores are higher for primary enrollment and decrease with the level of education (secondary enrollment), especially when output-oriented measures are considered. Across regions, ECA, EAP, and MENA have similar levels of input-inefficiency of about 65-70 percent, while LAC and SAS average around 60 percent, and AFR about 55 percent.

17 The regional aggregate is the simple average of the individual country scores obtained for the whole sample. The scores were not computed by constructing separate efficiency frontiers for each region. The regional classification exercise excludes the developed economies in all the regional aggregation exercises.

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i. Output efficiency in ECA and EAP is in the range of 75 to 80 percent, in LAC and MNA around 70 percent, in SAS about 60 percent and in AFR 50 percent.18 In EAP, ECA, and LAC the output efficiency scores are about 15 percent higher than the input efficiency, while in SAS they are about the same and in AFR 7 percent lower. This indicates that the first three regions are closer to the frontier on the output side than on the input (spending) side.

Table 2A. Educational Attainment: Input-Efficiency scores by regions across the world

- Single Input, Single Output

AFR EAP ECA LAC MNA SAS Gross primary enrollment .61 .65 .67 .65 .65 .70 Net primary enrollment .58 .72 .73 .70 .75 .69 Gross Secondary enrollment .57 .68 .66 .63 .70 .63 Net secondary enrollment .56 .61 .66 .63 .65 .62 Average years of school .56 .64 .69 .60 .59 .63 Second level complete .56 .63 .68 .60 .59 .63 PISA Science .82 .79 .68 .74 PISA Reading .78 .78 .68 .74 PISA Math .80 .79 .67 .74 Quality of Math and Science .57 .64 .69 .60 .69 .64

Table 2B. Educational Attainment: Output-Efficiency scores by regions across the world

- Single Input-Single Output

AFR EAP ECA LAC MNA SAS Gross primary enrollment .72 .79 .75 .77 .76 .79 Net primary enrollment .81 .93 .94 .94 .92 .90 Gross Secondary enrollment .34 .73 .89 .74 .77 .59 Net secondary enrollment .33 .59 .75 .68 .63 .49 Average years of school .42 .65 .86 .65 .59 .51 Second level complete .20 .39 .76 .41 .35 .32 PISA Science .90 .87 .77 .79 PISA Reading .88 .85 .79 .74 PISA Math .88 .86 .74 .78 Quality of Math and Science .57 .72 .72 .53 .73 .66 j. Two groups of indicators capture the quality of educational attainment: the PISA

scores (Math, Science and Reading) and the World Economic Forum (WEF) various indicators, of which we focus on one, the Quality of Math and Science

18 These are simple averages of the indicators by region. In output efficiency the primary and secondary level completed indicators were omitted due to problems with the data.

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education. Both variables have limitations: the PISA country sample is smaller and with relatively greater weight of developed nations, while the WEF variable is an index constructed to reflect the quality in a large sample of countries.

III.2.2. FDH and DEA Health Frontiers This section presents the single input (public expenditure on health per capita in PPP terms)-single output efficiency frontiers using both the FDH and DEA methodologies; seven alternative output indicators are used: life expectancy at birth, the disability adjusted life expectancy (DALE), DPT immunization, measles immunization, tuberculosis free population, maternal survival, and infant survival rates.19 Figures 8a-d show the FDH and DEA efficiency frontiers for four indicators. The specific country rankings for four of the health indicators are listed in Table A.4-5 of Appendix A. The graphical efficiency frontiers for other output indicators can be found in Appendix A (Figure A.2).

Free Disposable Hull (FDH) Data Envelopment

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Data Source: World Bank WDI, World Health Organization

Maternal Survival Rate vs Health Expenditure

AGO

ALBARGARM AUS AUTAZE

BDI

BENBFA

BGD

BGRBHR

BHS

BLR BLZ

BOL

BRABRB

BWA

CAF

CANCHECHL CHN

CIVCMR

COG

COL

COM

CPV CRICYP CZE DEU

DJI

DNK

DOMDZA

ECUEGY

ERI

ESPEST

ETH

FINFJI FRA

GAB

GBRGEO

GHA

GINGMB

GNB

GRCGRDGTM

GUY

HND

HRV

HTI

HUN

IDNIND

IRN ISLITA

JAMJOR

KAZ

KEN

KGZ

KHM

KOR

LAO

LBNLCALKA

LSO

LTU LUXLVA

MAR

MDA

MDG

MEXMKD

MLI

MNG

MOZ

MRT

MUS

MWI

MYS

NAM

NER

NGA

NIC

NLDNOR

NPL

NZLOMN

PAK

PANPER

PHL

PNG

POL

PRY

ROMRUS

RWA

SAU

SDNSEN

SLB

SLE

SLVSVK SVN SWE

SWZ

TCD

TGO

THA TJKTKM

TONTTO TUN

TUR

TZAUGA

UKRURY USAUZBVCTVEN

VNMVUTWSM

ZAF

ZAR

ZMB

ZWE

9850

09900

099

500

1000

00M

ate

rnal S

urv

ival R

ate

1000 2000 3000 4000 5000Orthogonalized Public Expditure on Health

Data Source: World Bank WDI, World Health Organization

Maternal Survival Rate vs Health Expenditure

 (a.1) (a.2)

19 Tuberculosis free, maternal survival rates, and infant survival rates are transformations of the original variables, tuberculosis incidence, maternal mortality, and infant mortality, respectively. Transformations are described in footnote 15.

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20

AGO

ALBARG

ARM

ATGAUS AUT

AZE

BDI

BEN

BFA

BGD

BGRBHRBHS

BLR

BLZ

BOL

BRABRB

BWA

CAF

CANCHECHL

CHN

CIV

CMR

COG

COL

COM

CPV

CRI

CYP CZE DEU

DJI

DMA

D

DOM

DZAECU

EGY

ERI

ESPEST

ETH

FIN

FJI

FRA

GAB

GBR

GEO

GHA

GIN

GMB

GNB

GRC

GRD

GTMGUY

HND

HRV

HTI

HUN

IDN

IND

IRN

ISLITA

JAMJORKAZ

KEN

KGZ

KHM

KNA

KOR

LAO

LBN

LCALKA

LSO

LTULUX

LVA

MAR

MDA

MDG

MEX

MKD

MLI

MNG

MOZMRT

MUS

MWI

MYS

NAM

NER

NGA

NIC

NLNOR

NPL

NZL

OMN

PAK

PANPER

PHL

PNG

POL

PRY

ROMRUS

RWA

SAU

SDN

SEN

SLB

SLE

SLV

SVKSVN SWE

SWZ

TCD

TGO

THA

TJK

TKM

TONTTO

TUNTUR

TZAUGA

UKRURYUSA

UZB

VCTVEN

VNM

VUT

WSM

YEM

ZAF

ZAR

ZMBZWE

.9.9

2.9

4.9

6.9

81

Infa

nt S

urv

iva

l Ra

te

1000 2000 3000 4000Orthogonalized Public Expditure on Health

Data Source: World Bank WDI, World Health Organization

Infant Survival Rate vs Health Expenditure

AGO

ALBARG

ARM

ATGAUS AUT

AZE

BDI

BEN

BFA

BGD

BGRBHRBHS

BLR

BLZ

BOL

BRABRB

BWA

CAF

CANCHECHL

CHN

CIV

CMR

COG

COL

COM

CPV

CRI

CYP CZE DEU

DJI

DMA

DNK

DOM

DZAECU

EGY

ERI

ESPEST

ETH

FIN

FJI

FRA

GAB

GBR

GEO

GHA

GIN

GMB

GNB

GRC

GRD

GTMGUY

HND

HRV

HTI

HUN

IDN

IND

IRN

ISLITA

JAMJORKAZ

KEN

KGZ

KHM

KNA

KOR

LAO

LBN

LCALKA

LSO

LTULUX

LVA

MAR

MDA

MDG

MEX

MKD

MLI

MNG

MOZMRT

MUS

MWI

MYS

NAM

NER

NGA

NIC

NLDNOR

NPL

NZL

OMN

PAK

PANPER

PHL

PNG

POL

PRY

ROMRUS

RWA

SAU

SDN

SEN

SLB

SLE

SLV

SVKSVN SWE

SWZ

TCD

TGO

THA

TJK

TKM

TONTTO

TUNTUR

TZAUGA

UKRURYUSA

UZB

VCTVEN

VNM

VUT

WSM

YEM

ZAF

ZAR

ZMBZWE

.9.9

2.9

4.9

6.9

81

Infa

nt S

urv

iva

l Ra

te

1000 2000 3000 4000Orthogonalized Public Expditure on Health

Data Source: World Bank WDI, World Health Organization

Infant Survival Rate vs Health Expenditure

 (b.1) (b.2)

AGO

ALBARGARM

AUS AUT

AZE

BDI

BENBFA

BGD

BGRBHR BLZ

BOL

BRABRB

BWA

CANCHECHL

CHN

CIVCMR

COL

CPV

CRICYP CZE DEU DNKDOM DZAECUEGY ESPEST

ETH

FIN FRA

GAB

GBR

GEO GHA

GINGMB

GRCGTM

GUYHND

HRV

HTI

HUN

IDN IND

IRN ISLITAJAM JOR

KAZ

KEN

KGZ

KHM

KOR

LAO

LBNLKA

LSO

LTULUX

LVAMAR

MDA

MDG

MEX MKD

MLIMNG

MOZ

MRT

MUS

MWI

MYS

NAM

NGA

NICNLDNOR

NPL

NZLOMN

PAK

PAN

PER

PHL

POL PRYROMRUS

RWA

SAU

SEN

SLE

SLVSVK SVN SWE

SWZ

TCD

THATJK

TTO TUNTUR

TZAUGA

UKR

URY USAVEN

VNM

YEM

ZAF

ZMB

ZWE

.985

.99

.995

1F

ree

Tu

be

rcu

losi

s

1000 2000 3000 4000 500Orthogonalized Public Expditure on Health

Data Source: World Bank WDI, World Health Organization

Free Tuberculosis vs Health Expenditure

AGO

ALBARGARM

AUS AUT

AZE

BDI

BENBFA

BGD

BGRBHR BLZ

BOL

BRABRB

BWA

CANCHECHL

CHN

CIV

CMR

COL

CPV

CRICYP CZE DEU DNKDOM DZAECUEGY ESPEST

ETH

FIN FRA

GAB

GBR

GEO GHA

GINGMB

GRCGTM

GUYHND

HRV

HTI

HUN

IDN IND

IRN ISLITAJAM JOR

KAZ

KEN

KGZ

KHM

KOR

LAO

LBNLKA

LSO

LTULUX

LVAMAR

MDA

MDG

MEX MKD

MLIMNG

MOZ

MRT

MUS

MWI

MYS

NAM

NGA

NICNLDNOR

NPL

NZLOMN

PAK

PAN

PER

PHL

POL PRYROMRUS

RWA

SAU

SEN

SLE

SLVSVK SVN SWE

SWZ

TCD

THATJK

TTO TUNTUR

TZAUGA

UKR

URY USAVEN

VNM

YEM

ZAF

ZMB

ZWE

.985

.99

.995

1F

ree

Tu

be

rcu

losi

s

1000 2000 3000 4000 5000Orthogonalized Public Expditure on Health

Data Source: World Bank WDI, World Health Organization

Free Tuberculosis vs Health Expenditure

 (c.1) (c.2)

AGO

ALBARG

ARM

ATG

AUSAUT

AZE

BDI

BEN

BFA

BGD

BGRBHR

BHS

BLRBLZBOL

BRA

BRB

BWA

CAF

CANCHE

CHL

CHN

CIVCMR

COG

COL

COM

CPV

CRICYP

CZE

DEU

DJI

DMA

DNK

DOM

DZAECU

EGY

ERI

ESP

EST

ETH

FIN

FJI

FRA

GAB

GBR

GEO

GHA

GIN

GMB

GNB

GRC

GRDGTM

GUY

HND

HRV

HTI

HUN

IDN

IND

IRN

ISLITA

JAM JOR

KAZ

KEN

KGZ

KHM

KOR

LAO

LBN

LCALKA

LSO

LTU

LUX

LVAMAR

MDA

MDG

MEX

MKD

MLI

MNG

MOZ

MRT

MUS

MWI

MYS

NAMNER

NGA

NIC

NLDNOR

NPL

NZL

OMN

PAK

PANPER

PHL

PNG

POL

PRYROM

RUS

RWA

SAU

SDN

SEN

SLB

SLE

SLVSVK

SVN

SWE

SWZ

TCD

TGO

THA

TJK

TKM

TON

TTO

TUNTUR

TZA

UGA

UKR

URY

USA

UZB

VCT

VEN

VNM

VUT

WSM

YEM

ZAF

ZAR

ZMBZWE

5060

7080

Dis

ab

ility

Ad

just

ed

Life

Exp

ect

an

cy

1000 2000 3000 4000 500Orthogonalized Public Expditure on Health

Data Source: World Bank WDI, Institute for Health Metrics and Evaluation (IHME)

Disability Adjusted Life Expectancy vs Health Expenditure

AGO

ALBARG

ARM

ATG

AUSAUT

AZE

BDI

BEN

BFA

BGD

BGRBHR

BHS

BLRBLZBOL

BRA

BRB

BWA

CAF

CANCHE

CHL

CHN

CIVCMR

COG

COL

COM

CPV

CRICYP

CZE

DEU

DJI

DMA

DNK

DOM

DZAECU

EGY

ERI

ESP

EST

ETH

FIN

FJI

FRA

GAB

GBR

GEO

GHA

GIN

GMB

GNB

GRC

GRDGTM

GUY

HND

HRV

HTI

HUN

IDN

IND

IRN

ISLITA

JAM JOR

KAZ

KEN

KGZ

KHM

KOR

LAO

LBN

LCALKA

LSO

LTU

LUX

LVAMAR

MDA

MDG

MEX

MKD

MLI

MNG

MOZ

MRT

MUS

MWI

MYS

NAMNER

NGA

NIC

NLDNOR

NPL

NZL

OMN

PAK

PANPER

PHL

PNG

POL

PRYROM

RUS

RWA

SAU

SDN

SEN

SLB

SLE

SLVSVK

SVN

SWE

SWZ

TCD

TGO

THA

TJK

TKM

TON

TTO

TUNTUR

TZA

UGA

UKR

URY

USA

UZB

VCT

VEN

VNM

VUT

WSM

YEM

ZAF

ZAR

ZMBZWE

5060

7080

Dis

ab

ility

Ad

just

ed

Life

Exp

ect

an

cy

1000 2000 3000 4000 5000Orthogonalized Public Expditure on Health

Data Source: World Bank WDI, Institute for Health Metrics and Evaluation (IHME)

Disability Adjusted Life Expectancy vs Health Expenditure

 (d.1) (d.2)

Figure 8: Health Efficiency Frontiers Single Input-Single Output

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21

Several results may be highlighted:

a. The input-efficiency rankings of the health indicators are positively and significantly correlated, with the Spearman rank correlation coefficient oscillating between .19 and .93 (see Tables A.1 and A.3 in Appendix A). This indicates that the efficiency ranking is similar regardless of the output indicator being used.

b. Despite the orthogonalization by GDP, the richer countries tend to be more efficient (Table 3). The inefficient group has two types of countries: one small group of rich countries like the USA, Great Britain, and Switzerland which have high expenditure levels and not extremely high output (input inefficiency) and another much larger group of countries with relatively low spending but their output indicators could be substantially larger, like Lesotho, Malawi, and Sierra Leone. Other large African countries, Nigeria and Mozambique, appear in this group as well.

Table 3. Health Attainment: Single Input, Single Output

Input-Efficient Output Efficient More efficient Bahrain, Saudi Arabia, Oman,

Luxembourg, Trinidad and Tobago, Republic of Korea, Australia

Oman, Saudi Arabia, Bahrain, Luxembourg, Switzerland, Czech Republic, Finland, Italy

Least efficient Burundi, Mozambique, Democratic republic of Congo, Lesotho, Malawi, Switzerland, United States, Great Britain

Central African Republic, Sierra Leone, Nigeria, Lesotho, Malawi, Mozambique, Democratic Republic of Congo, Zimbabwe

Table 3A. Health Attainment: Single Input, Single Output Efficiency Scores

Input-Efficient Output Efficient More efficient .85 1.0 Least efficient .38 .77

c. The health efficiency rankings are closely correlated: the Spearman coefficient of output-efficiency ranking is .34 and the output one is .93 (see Tables A.2 and A.4 in Appendix A).

d. To examine the efficiency differences across groups of countries and the potential efficiency gains of moving closer to the frontier, countries were clustered into the least and most efficient (Tables 3 and 3A). The typical country of the least efficient group could maintain the same output levels with about 50% of the expenditure level. Or on the output side, the least efficient group could increase output levels by 35% for a given expenditure level (Table 3A) The divergence

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22

between least and most efficient groups in output-efficiency is not as large as in education.

e. Output-efficiency scores are notoriously higher than the input-efficiency ones (Tables 4A and 4B). While the input-efficiency regional average oscillates between 40 and 50 percent, the output-efficiency average fluctuates between 90 and 95 percent, except in AFR where it is 85 percent. The large difference between the health input and output efficiency did not happen in the case of education, nor in previous studies based on data from the early 2000s. Comparing these results with efficiency scores of the early 2000s (Herrera-Pang, 2005), there seems to be a stagnation of input efficiency while output efficiency increased significantly, especially in AFR and SAS, which had the lowest achievement levels in the earlier studies.

Table 4A. Health Input-Efficiency scores by regions across the world

- Single Input, Single Output

AFR  EAP  ECA  LAC  MNA  SAS Immunization, measles   .42  .46  .46  .46  .58  .44 Immunization  .42  .55  .50  .47  .63  .47 Life Expectancy at birth  .42  .48  .48  .48  .60  .44 DALE  .49  .54  .54  .56  .65  .50 Free Tuberculosis Cases  .42  .48  .48  .48  .61  .44 Infant Survival Rate  .42  .48  .56  .47  .59  .44 Maternal Survival Rate  .42  .46  .46  .46  .59  .44 

Table 4B. Health Output-Efficiency scores by regions across the world

- Single Input-Single Output

  AFR  EAP  ECA  LAC  MNA  SAS Life Expectancy at birth  .72  .87  .90  .90  .91  .85 Immunization DPT  .82  .87  .95  .93  .94  .89 Immunization Measles  .80  .87  .96  .93  .93  .85 DALE  .73  .85  .90  .91  .92  .85 Tuberculosis free  .99  1.0  1.0  1.0  1.0  1.0 Infant survival rate  .95  .98  .99  .98  .98  .96 Maternal Survival rate  1.0  1.0  1.0  1.0  1.0  1.0 

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III.2.3. FDH and DEA Infrastructure Efficiency frontiers This section presents the single input (public capital expenditure per capita)- single output frontiers, using both the FDH and DEA methodologies, with six alternative output indicators: quality of overall infrastructure, quality of roads, quality of railroad infrastructure, quality of port infrastructure, quality of transport infrastructure, and quality of electricity supply. Figures 9a-c show the FDH efficiency frontier for three indicators. The specific country scores for all the infrastructure indicators and the DEA frontiers are can be found in Appendix A.7.

Free Disposable Hull (FDH) Data Envelopment

AGO

ALB

ARE

ARG

ARM

AUS

AUT

AZE

BDI

BEL

BEN

BFABGD

BGR

BHR

BIH

BLZ

BOL

BRA

BRB

BTNBWA

CAN

CHE

CHL

CIV

CMR

COL

CPV

CRI

CZE

DEU

DOM DZAECU

EGY

EST

ETH

FINFRA

GAB

GBR

GEO

GHA

GIN

GMBGRC

GTM

GUYHND

HRV

HTI

IDN IND

IRL

IRN

ISL

ISR

ITA

JOR

JPN

KAZ

KENKHM

KOR

KWTLKA

LSO

LTU

LUX

LVA

MAR

MDA

MDG

MEX

MLI

MMR

MNE

MOZ

MUS

MWI

MYS

NAM

NGA

NIC

NLD

NPL

NZL

OMN

PAK

PAN

PERPHL

POL

PRT

PRY

ROM

RUS

RWA

SAU

SEN

SGP

SLE

SLV

SRB

SURSVK SWZ

SYC

TCD

THA

TJK

TTO

TUNTUR

TZA

UGA

UKRURY

USA

VEN

VNM

YEM

ZAF

ZMBZWE

AGO

ALB

ARE

ARG

ARM

AUS

AUT

AZE

BDI

BEL

BEN

BFABGD

BGR

BHR

BIH

BLZ

BOL

BRA

BRB

BTNBWA

CAN

CHE

CHL

CIV

CMR

COL

CPV

CRI

CZE

DEU

DOM DZAECU

EGY

EST

ETH

FINFRA

GAB

GBR

GEO

GHA

GIN

GMBGRC

GTM

GUYHND

HRV

HTI

IDN IND

IRL

IRN

ISL

ISR

ITA

JOR

JPN

KAZ

KENKHM

KOR

KWTLKA

LSO

LTU

LUX

LVA

MAR

MDA

MDG

MEX

MLI

MMR

MNE

MOZ

MUS

MWI

MYS

NAM

NGA

NIC

NLD

NPL

NZL

OMN

PAK

PAN

PERPHL

POL

PRT

PRY

ROM

RUS

RWA

SAU

SEN

SGP

SLE

SLV

SRB

SURSVK SWZ

SYC

TCD

THA

TJK

TTO

TUNTUR

TZA

UGA

UKRURY

USA

VEN

VNM

YEM

ZAF

ZMBZWE

23

45

67

Qualit

y of O

vera

ll In

frast

ruct

ure

0 .5 1 1.5 2 2.5Log-Log Form: Orthogonalized Public Investment Per Capita

Data Source: World Economic Outlook-IMF/World Economic Forum

Quality of Overall Infrastructure vs Public Investment

 

AGO

ALB

ARE

ARG

ARM

AUS

AUT

AZE

BDI

BEL

BEN

BFABGD

BGR

BHR

BIH

BLZ

BOL

BRA

BRB

BTNBWA

CAN

CHE

CHL

CIV

CMR

COL

CPV

CRI

CZE

DEU

DOM DZAECU

EGY

EST

ETH

FINFRA

GAB

GBR

GEO

GHA

GIN

GMBGRC

GTM

GUYHND

HRV

HTI

IDN IND

IRL

IRN

ISL

ISR

ITA

JOR

JPN

KAZ

KENKHM

KOR

KWTLKA

LSO

LTU

LUX

LVA

MAR

MDA

MDG

MEX

MLI

MMR

MNE

MOZ

MUS

MWI

MYS

NAM

NGA

NIC

NLD

NPL

NZL

OMN

PAK

PAN

PERPHL

POL

PRT

PRY

ROM

RUS

RWA

SAU

SEN

SGP

SLE

SLV

SRB

SURSVK SWZ

SYC

TCD

THA

TJK

TTO

TUNTUR

TZA

UGA

UKRURY

USA

VEN

VNM

YEM

ZAF

ZMBZWE

AGO

ALB

ARE

ARG

ARM

AUS

AUT

AZE

BDI

BEL

BEN

BFABGD

BGR

BHR

BIH

BLZ

BOL

BRA

BRB

BTNBWA

CAN

CHE

CHL

CIV

CMR

COL

CPV

CRI

CZE

DEU

DOM DZAECU

EGY

EST

ETH

FINFRA

GAB

GBR

GEO

GHA

GIN

GMBGRC

GTM

GUYHND

HRV

HTI

IDN IND

IRL

IRN

ISL

ISR

ITA

JOR

JPN

KAZ

KENKHM

KOR

KWTLKA

LSO

LTU

LUX

LVA

MAR

MDA

MDG

MEX

MLI

MMR

MNE

MOZ

MUS

MWI

MYS

NAM

NGA

NIC

NLD

NPL

NZL

OMN

PAK

PAN

PERPHL

POL

PRT

PRY

ROM

RUS

RWA

SAU

SEN

SGP

SLE

SLV

SRB

SURSVK SWZ

SYC

TCD

THA

TJK

TTO

TUNTUR

TZA

UGA

UKRURY

USA

VEN

VNM

YEM

ZAF

ZMBZWE

23

45

67

Qualit

y of O

vera

ll In

frast

ruct

ure

0 .5 1 1.5 2 2.5Log-Log Form: Orthogonalized Public Investment Per Capita

Data Source: World Economic Outlook-IMF/World Economic Forum

Quality of Overall Infrastructure vs Public Investment

 

(a.1) (a.2)

AGO

ALB

ARE

ARGARM

AUS

AUT

AZE

BDI

BEL

BENBFA

BGD

BGR

BHR

BIH

BLZ

BOL

BRA

BRB

BTN

BWA

CANCHE

CHL

CIV

CMRCOL

CPV

CRI

CZE

DEU

DOM

DZA

ECUEGY

EST

ETH

FIN

FRA

GAB

GBR

GEO

GHA

GIN

GMBGRC

GTM

GUYHND

HRV

HTI

IDN

INDIRL

IRN

ISL

ISR

ITA

JOR

JPN

KAZ

KEN

KHM

KOR

KWTLKA

LSO

LTU

LUX

LVAMAR

MDAMDG

MEX

MLI

MMR

MNE

MOZ

MUS

MWI

MYS

NAM

NGA

NIC

NLD

NPL

NZLOMN

PAK

PAN

PERPHL POL

PRT

PRY

ROM

RUS

RWA

SAU

SEN

SGP

SLE

SLV

SRB

SURSVK SWZ

SYC

TCD

THA

TJK

TTOTUN

TUR

TZA UGA

UKR URY

USA

VEN

VNM

YEM

ZAF

ZMBZWE

AGO

ALB

ARE

ARGARM

AUS

AUT

AZE

BDI

BEL

BENBFA

BGD

BGR

BHR

BIH

BLZ

BOL

BRA

BRB

BTN

BWA

CANCHE

CHL

CIV

CMRCOL

CPV

CRI

CZE

DEU

DOM

DZA

ECUEGY

EST

ETH

FIN

FRA

GAB

GBR

GEO

GHA

GIN

GMBGRC

GTM

GUYHND

HRV

HTI

IDN

INDIRL

IRN

ISL

ISR

ITA

JOR

JPN

KAZ

KEN

KHM

KOR

KWTLKA

LSO

LTU

LUX

LVAMAR

MDAMDG

MEX

MLI

MMR

MNE

MOZ

MUS

MWI

MYS

NAM

NGA

NIC

NLD

NPL

NZLOMN

PAK

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Data Source: World Economic Outlook-IMF/World Economic Forum

Transport Infrastructure vs Public Investment

 

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Data Source: World Economic Outlook-IMF/World Economic Forum

Transport Infrastructure vs Public Investment

 

(b.1) (b.2)

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AGO

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0 .5 1 1.5 2 2.5Log-Log Form: Orthogonalized Public Investment Per Capita

Data Source: World Economic Outlook-IMF/World Economic Forum

Quality of Electricity Supply vs Public Investment

 

AGO

ALB

ARE

ARG

ARM

AUS

AUT

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BDI

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BEN BFA

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Data Source: World Economic Outlook-IMF/World Economic Forum

Quality of Electricity Supply vs Public Investment

 (c.1) (c.2)

 

Figure 9: Infrastructure Frontiers Single Input-Single Output

As in previous cases, countries were clustered into the more efficient and least efficient groups (Table 5). The more efficient countries are the richer economies, with Chile included in that group. Within the inefficient group we find mostly African countries and a few LAC countries like Ecuador and Trinidad and Tobago. The discrepancy in efficiency between both groups is extraordinary (Table 5A) and much larger than in education or health.

Table 5. Infrastructure Single Input, Single Output)

Input-Efficient Output Efficient More efficient Germany, Belgium,

Switzerland, Singapore, United Kingdom, Austria, Chile, Finland, France.

Israel, United Araba Emirates, Germany, Slovenia, Switzerland, Netherlands, Great Britain, Iceland.

Least efficient Ecuador, Etiopia, Lesotho, Venezuela RB, Trinidad and Tobago, Angola, Botswana

Haiti, Tchad, Gabon, Uganda, Romania, Vietnam

Table 5A. Infrastructure Single Input, Single Output Efficiency Scores

Input-Efficient Output Efficient More efficient .68 .96 Least efficient .10 .32

Input-efficiency is extremely low, with the average regional input-efficiency score between 18% and 30% (Table 6A); AFR is the lower bound at 18% and EAP at 29%. Output-efficiency is significantly higher (Table 5B), indicating that capital spending

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deviation from the frontier is larger than the output deviation from the frontier. This result could be explained due to the index of quality being used as output indicator (which is limited by nature of the construction from 1-7). Also, the computation of the frontiers including both developed and developing countries could be biasing the results, though when other inputs are included the problem is mitigated significantly. The efficiency scores are closely correlated with indicators of the regulatory quality, or the effectiveness of government (Table 7). This is especially true when output- efficiency indicators are used.20 These relationships are explored econometrically in the last section, when other factors are controlled for.

Table 6A Infrastructure: Input-Efficiency scores by regions across the world

- Single Input, Single Output

AFR  EAP  ECA  LAC  MNA  SAS 

Quality of electricity supply  0.17  0.24  0.19  0.18  0.20  0.19 

Transport infrastructure  0.17  0.33  0.18  0.19  0.25  0.20 

Quality of air transport infrastructure  0.18  0.31  0.17  0.20  0.22  0.19 

Quality of port infrastructure  0.19  0.32  0.19  0.22  0.24  0.20 

Quality of railroad infrastructure  0.20  0.25  0.23  0.19  0.24  0.28 

Quality of roads  0.18  0.30  0.18  0.20  0.24  0.19 

Quality of overall infrastructure  0.17  0.26  0.18  0.19  0.22  0.19 

Table 6B Infrastructure: Output-Efficiency scores by regions across the world

- Single Input, Single Output

AFR  EAP  ECA  LAC  MNA  SAS 

Quality of electricity supply  0.44  0.68  0.70  0.63  0.75  0.49 

Transport infrastructure  0.48  0.67  0.53  0.54  0.63  0.54 

Quality of air transport infrastructure  0.57  0.71  0.62  0.66  0.71  0.60 

Quality of port infrastructure  0.56  0.65  0.55  0.60  0.67  0.53 

Quality of railroad infrastructure  0.35  0.52  0.51  0.30  0.48  0.47 

Quality of roads  0.52  0.66  0.51  0.57  0.70  0.56 

Quality of overall infrastructure  0.52  0.65  0.59  0.57  0.69  0.54 

20 The overall infrastructure index is weakly correlated with ranking on the quality of the public investment management systems (Dabla-Norris, et. al.), probably due to the limited sample in the PIMS study.

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Table 7 Correlation of Efficiency Rankings and Governance indicators.

III.3. Multiple Inputs and Multiple Outputs Education, health, and infrastructure attainment are not solely determined by public spending. Other inputs, such as private spending also affect the output indicators. For both health and capital spending, we could get data on private spending, but not for education.21 Hence the education production technology will have multiple indicators of educational attainment, and three possible inputs (public spending, teachers per pupil, and adult literacy rate). In health, besides public spending, three other inputs were included: private spending, improved sanitation condition, gross secondary school enrollment and the literacy of adults. The analysis was limited to include up to two inputs and two outputs to avoid the curse of dimensionality: increasing the number of output or input indicators biases efficiency scores towards one, increases the variance of the estimators, and reduces the speed of convergence to the true efficiency estimators (Simar and Wilson, 2000; Groskopff, 1996). III.3.1. DEA Education Frontiers The multi-input multi-output efficiency scores produce a ranking of countries like the single input-single output case (Table 8). Lebanon and Kazakhstan appear as efficient countries, close to the origin due to their low spending levels but low attainment levels. However, new countries appear within the more efficient group, such as Finland, the Islamic Republic of Iran and Spain. Within the least efficient countries, Norway appears as input-inefficient, as well as Brazil and Saudi Arabia. The least output efficient countries are mostly African counties, with Pakistan and Peru. The discrepancy in efficiency between the more efficient group and least efficient is lower than in the single input case, but still the typical country of the least efficient group could achieve the same output with 40% lower spending.

21 The source of health data is the WDI while for capital spending it is WEO.

Spearman Rank Correlation 

  Control of Corruption 

Government Effectiveness 

Political Stability  and Absence of 

Violence/Terrorism 

Regulatory Quality 

Rule of Law 

Voice and Accountability 

Input Efficiency 

0.358*** (113) 

0.374*** (113) 

0.291*** (113) 

0.439*** (113) 

0.381*** (113) 

0.378*** (113) 

Output Efficiency 

0.678*** (113) 

0.752*** (113) 

0.488*** (113) 

0.720*** (113) 

0.686*** (113) 

0.420*** (113) 

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Table 8. Educational Attainment: Multiple Inputs, Multiple Outputs sample countries

Input-Efficient Output Efficient More efficient Lebanon, Panama, Bahrain,

Kazakhstan, Finland, China, Spain, Islamic Republic of Iran

Kazakhstan, Spain, Islamic Republic of Iran, Switzerland, Bahrain, Lebanon, Russian Federation

Least efficient Cyprus, Costa Rica, Norway, Iceland, Moldova, Brazil, Saudi Arabia

Mali, Senegal, Dominican Republic, Côte d’Ivoire, Angola, Mozambique, Sierra Leone, Pakistan, Peru.

Table 8A. Educational Attainment: Multiple Inputs, Multiple Outputs efficiency scores

Input-Efficient Output Efficient More efficient .99 .99 Least efficient .61 .56

When multiple inputs are considered, efficiency scores tend to rise. The regional aggregation for input and output efficiency scores shows (Tables 9A and 9B) that, as the model becomes more complex (adding inputs or outputs), scores rise due to the increasing uniqueness of the input-output bundle, and the relatively higher difficulty of finding peers. The first four rows of Table 8A allow gauging the impact on efficiency of adding literacy of adults as an additional input, by comparing scores with the single input case (Table 2A). In Africa and SAS, the change is dramatic, increasing from around 60 percent to the low 80s in AFR and low 90s in SAS. In EAP, ECA and MNA changes are of relatively lower importance, and in LAC the addition of the input is insignificant. This differential response to the inclusion of the additional input is due to the low levels of adult literacy in AFR and SAS, which yield gains in efficiency. In output efficiency there is no change in EAP and ECA, but in MENA and LAC the change is relevant with MNA being on the efficiency frontier (Table 8B, row 1 and Table 2B row 8). Individual country efficiency scores for the multiple inputs for education are reported in Table A.3 of Appendix A.

Table 9A. Education Attainment: Input-Efficiency scores by regions across the world

- Multiple Inputs, Multiple Outputs

AFR EAP ECA LAC MNA SAS 2 inputs (public expenditure, literacy of adult) – 1 outputs (Net primary enroll.)

0.84 0.83 0.78 0.76 0.82 0.91

2 inputs (public expenditure, literacy of adult) – 1 outputs (Net Secondary enroll.)

0.84 0.81 0.83 0.82 0.88 0.91

2 inputs (public expenditure, literacy of adult) – 1 outputs (Average Year of Schooling)

0.83 0.82 0.92 0.78 0.81 0.90

2 inputs (public expenditure, literacy of adult) – 1 outputs (Pisa Science)

0.96 0.91 0.91 1.00

2 inputs (public expenditure, teachers per pupil) – 2 outputs (Pisa Science & net primary enroll.)

0.92 0.86 0.89 0.88

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Table 9B. Education Attainment: Output-Efficiency scores by regions across the world

- Multiple Inputs, Multiple Outputs

AFR EAP ECA LAC MNA SAS 2 inputs (public expenditure, literacy of adult) – 1 outputs (Pisa Science)

0.91 0.87 0.80 1.00

2 inputs (public expenditure, literacy of adult) – 1 outputs (Net primary enroll.)

0.85 0.96 0.95 0.93 0.98 0.91

2 inputs (public expenditure, literacy of adult) – 1 outputs (Net Secondary enroll.)

0.57 0.71 0.81 0.74 0.81 0.76

2 inputs (public expenditure, literacy of adult) – 1 outputs (Average Year of Schooling)

0.69 0.73 0.92 0.74 0.79 0.82

2 inputs (public expenditure, teachers per pupil) – 2 outputs (Pisa Science & net primary enroll.)

0.98 0.95 0.96 0.98

III.3.2. DEA Health Multi Input-Output In health there are multiple possible combinations of inputs (public expenditure, private expenditure, and literacy of adults) and outputs (life expectancy at birth, immunization DPT, immunization measles, and Disability Adjusted life expectancy (DALE)). Of the additional inputs, private sector health spending deserves special attention given its magnitude and pattern of use across countries. In many countries, private spending in health is larger than public spending, with the ratio of private to public spending being larger than one and decreasing with the level of GDP per capita (Fig 10). Hence, richer countries use this input less intensively than poorer countries, or, that poorer countries use more public financing relative to private to achieve health outcomes. There is a clear positive relationship between private spending in health and GDP per capita (Fig. 11), like the one displayed by public spending. Hence, we will use the orthogonalized component in the inputs.

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6 8 10 12 Log GDP Per Capita PPP 2011

Data Source: World Bank Indicators

Ratio of Private to Public Health Spending as a Share of GDP vs GDP Per Capita

Figure 10 Ratio of Private to Public Health Spending and GDP per Capita

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6 8 10 12 Log GDP Per Capita PPP 2011

Data Source: World Bank Indicators

Private Health Spending vs GDP Per Capita

Figure 11 Private Health Spending and GDP per Capita

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Table 10. Health Attainment Country Clusters: Multiple Inputs-Multiple Outputs Sample of countries

Input-Efficient Output Efficient More efficient Oman, Bahrain, Cyprus,

Luxembourg, Saudi Arabia, Lebanon

Oman, Luxembourg, Cyprus, Iceland, Norway, Saudi Arabia, Bangladesh, Bahrain

Least efficient South Africa, Brazil, Georgia, Paraguay, Namibia, St. Lucia

South Africa, Lesotho, Zimbabwe, Angola, Sierra Leone

Table 10A. Health Attainment Country Clusters: Multiple Inputs-Multiple Outputs Efficiency scores

Input-Efficient Output Efficient More efficient 1.0 1.0 Least efficient .64 .84

As in previous cases, the countries were clustered into the most efficient and least efficient groups. In this more complex model, the more efficient group is directly on the frontier (score of 1) while the least efficient group on average scores .64 and .84 in input and output efficiency, respectively. The discrepancy between the groups narrows, but still the scope for expenditure reduction is about 30%. This is lower than in the education case.

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Table 11A. Health Attainment: Input-Efficiency scores by regions across the world

- Multiple Inputs-Multiple Outputs

  AFR  EAP  ECA  LAC  MNA  SAS 2 inputs (public expenditure, Private expenditure) – 1 output (Immunization DPT) 

0.41  0.52  0.46  0.40  0.59  0.44 

2 inputs (public expenditure, Private expenditure) – 1 output (Maternal Survival Rate) 

0.41  0.43  0.47  0.39  0.53  0.42 

2 inputs (public expenditure, Private expenditure) – 1 output (Dale) 

0.45  0.51  0.48  0.49  0.59  0.46 

2 inputs (public expenditure, Improved Sanitation) – 1 output (Maternal Survival Rate) 

0.85  0.83  0.83  0.82  0.90  0.84 

2 inputs (public expenditure, Improved Sanitation) – 1 output (Dale) 

0.86  0.79  0.72  0.82  0.88  0.80 

2 inputs (public expenditure, Adult Literacy Rate) – 1 output (Immunization DPT) 

0.80  0.76  0.65  0.64  0.83  0.86 

2 inputs (public expenditure, Adult Literacy Rate) – 1 output (Maternal Survival Rate) 

0.78  0.79  0.86  0.76  0.94  0.89 

2 inputs (public expenditure, Adult Literacy Rate) – 1 output (Dale) 

0.81  0.75  0.70  0.82  0.92  0.87 

2 inputs (public expenditure, Improved Sanitation) – 2 outputs (Dale, Maternal Survival Rate) 

0.88  0.86  0.89  0.85  0.86  0.84 

2 inputs (public expenditure, Improved Sanitation) – 2 outputs (Dale, Infant Survival Rate) 

0.87  0.82  0.84  0.84  0.84  0.83 

2 inputs (public expenditure, Adult Literacy Rate) – 2 outputs (Dale, Maternal Survival Rate) 

0.82  0.81  0.86  0.85  0.97  0.93 

2 inputs (public expenditure, private expenditure) – 2 outputs (Dale, Infant Survival Rate) 

0.94  0.98  0.99  0.98  0.98  0.96 

Table 11B. Health Attainment: Output-Efficiency scores by regions across the world

- Multiple Inputs, Multiple Outputs

AFR EAP ECA LAC MNA SAS 2 inputs (public expenditure, Private expenditure) – 1 outputs (Immunization, DPT)

0.81 0.87 0.95 .093 0.94 0.88

2 inputs (public expenditure, Improved Sanitation) – 1 outputs (Life Expectancy at Birth)

0.86 0.93 0.91 0.93 0.94 0.93

2 inputs (public expenditure, Improved Sanitation) – 1 outputs (Immunization, DPT)

0.86 0.88 0.95 0.92 0.97 0.90

2 inputs (public expenditure, Improved Sanitation) – 1 outputs (Dale)

0.88 0.91 0.91 0.94 0.95 0.93

2 inputs (public expenditure, Adult Literacy Rate) – 1 outputs (Immunization, DPT)

0.85 0.88 0.93 0.92 0.97 0.90

2 inputs (public expenditure, Adult Literacy Rate) – 1 outputs (Maternal Survival Rate)

1.0 1.0 1.0 1.0 1.0 1.0

2 inputs (public expenditure, Adult Literacy Rate) – 1 outputs (Dale)

0.84 0.90 0.91 0.95 0.98 0.94

2 inputs (public expenditure, Improved Sanitation) – 2 outputs (Dale, Maternal Survival Rate)

1.0 1.0 1.0 1.0 1.0 1.0

2 inputs (public expenditure, Adult Literacy Rate) – 2 outputs (Dale, Infant Survival Rate)

0.97 0.99 0.99 0.99 1.0 0.99

2 inputs (public expenditure, private expenditure) – 2 outputs (Dale, Infant Survival Rate)

0.94 0.98 0.99 0.98 0.98 0.96

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The impact of private spending on efficiency scores is puzzling. The input efficiency scores remain unchanged (Table 11A, rows 1-3) compared to the single output case (Table 4A), though output efficiency increases (Tables 11B vs. 4B). But all the other combinations of inputs increase efficiency. For instance, when the adult literacy rate is included as an input, the AFR DALE efficiency increases from .49 to .81 and MNA efficiency increases from .65 to .92. Output efficiency increase as well, though not in the same proportion; from .73 to .84 in AFR and from .92 to .98 in MNA. Other additional inputs, such as improved sanitation conditions, have similar effects on efficiency measures. Similar results are obtained when the two input-two output models are considered, but efficiency scores increase when private health spending is considered. Table 11B shows that, on average, developing nations score between .84 and .89 in output efficiency in the multiple input-output framework. These figures imply that developing countries could raise their output levels by an average of 15 percent with the same input consumption, if they were as efficient as the comparable benchmark countries. This figure is simply indicative, as the estimate varies with the country and with the selected indicator and has a large variance across countries: for instance, the bottom decile of (input) efficiency scores is about .64, implying that the scope for increasing health and education attainment levels is between 3 or 4 times higher than for the whole sample average. Individual country efficiency scores for the multiple inputs for health are reported in Table A.6 of Appendix A. III.3.3. DEA Infrastructure Multi Input-Output In infrastructure we will focus on adding private capital spending as an input.to the existing production function of one input (quality of overall infrastructure). The private spending is generally larger than public capital spending, with the ratio being larger than one (Figure 12). However, there are cases where private spending is extremely low compared with public capital spending, such as Trinidad and Tobago, Venezuela, and Mozambique. The trend is for the ratio to increase with the level of GDP. Private capital spending is also positively correlated with GDP (Fig. 13). Hence, we will use the orthogonalized component. Countries were clustered into the most and least efficient (Table 12) and the efficiency scores of both groups show a marked increase in efficiency (Table 12A). The most efficient group lies on the frontier, while the least efficient group averages .28.

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Data Source: World Economic Outlook-IMF

Ratio of Private to Public Investment Spending vs GDP per Capita

Figure 12 Ratio of Private to Public Capital Spending

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Data Source: World Economic Outlook-IMF

Private Investment Spending vs GDP per Capita

Figure 13 Private Capital Spending per capita and GDP per capita

The regional aggregation shows that MNA and EAP have the highest efficiency scores, both input and output oriented (Table 13). Individual country efficiency scores for the multiple inputs for infrastructure are reported in Table A.8 of Appendix A.

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Table 12. Capital Spending Multiple Inputs, Multiple Outputs

Input-Efficient Output Efficient More efficient Germany, Israel, Singapore,

Belgium, Switzerland, France, Finland, United Arab Emirates

Germany, Israel, United Arab Emirates, Barbados, Switzerland, Netherlands, Singapore

Least efficient Haiti, Bosnia-Herzegovina, Myanmar, Paraguay, Angola, Burundi, Sierra Leone, Venezuela RB

Haiti, Chad, Myanmar, Bosnia-Herzegovina, Paraguay, Bangladesh, Nigeria, Moldova, Lesotho

Table 12A. Capital Spending Multiple Inputs, Multiple Outputs

Input-Efficient Output Efficient More efficient .99 1.0 Least efficient .28 0.33

Table 13A. Infrastructure: Input-Efficiency scores by regions across the world

- Multiple Inputs-Multiple Outputs

AFR  EAP  ECA  LAC  MNA  SAS 

Quality of electricity supply  0.52  0.57  0.61  0.61  0.69  0.47 

Transport infrastructure  0.48  0.59  0.48  0.52  0.59  0.47 

Quality of air transport infrastructure 

0.49  0.57  0.49  0.56  0.60  0.46 

Quality of port infrastructure  0.47  0.54  0.43  0.51  0.58  0.43 

Quality of railroad infrastructure  0.46  0.55  0.56  0.46  0.50  0.54 

Quality of roads  0.54  0.58  0.47  0.55  0.67  0.49 

Quality of overall infrastructure  0.52  0.56  0.53  0.55  0.66  0.47 

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Table 13B. Infrastructure: Output-Efficiency scores by regions across the world

- Multiple Inputs-Multiple Outputs

AFR  EAP  ECA  LAC  MNA  SAS 

Quality of electricity supply  0.50  0.68  0.71  0.66  0.78  0.49 

Transport infrastructure  0.54  0.67  0.55  0.58  0.66  0.55 

Quality of air transport infrastructure 

0.63  0.71  0.64  0.69  0.75  0.61 

Quality of port infrastructure  0.62  0.66  0.56  0.63  0.71  0.54 

Quality of railroad infrastructure  0.42  0.54  0.55  0.36  0.49  0.47 

Quality of roads  0.59  0.66  0.52  0.60  0.74  0.57 

Quality of overall infrastructure  0.58  0.65  0.61  0.61  0.74  0.55 

IV. Covariates of Inefficiency Variation across Countries This chapter seeks to identify correlates of efficiency variation across countries. Efficiency scores were obtained in the first stage described up to this section. This two-stage approach seeks to identify statistically significant regularities common to efficient or inefficient countries. This exercise does not try to identify supply or demand factors that affect health and education outcomes, such as those described by Filmer (2003). The scope is limited to verifying statistical association between the efficiency scores and environmental variables, as done in Herrera and Pang (2005). IV.1. Method, Variables and Data Description The cross-section consists of many countries (varying from 19 to 69 depending on the output indicator) and a single period, as we collapsed the 2009-2015 information into a period average for each variable. The dependent variable is the input efficiency score calculated by the DEA method in the first stage. Given that the dependent variable (the efficiency score) is continuous and distributed over a limited interval (between zero and one), it is appropriate to use a censored (Tobit) regression model to analyze the relationships with other variables. The input-oriented estimator reflects the consideration that input choices are more under the policy maker’s control. The independent variables reflect environmental effects included in precursor papers, as well as suggested by others recently. We included the following independent variables.22 a. The size of government expenditure. Most of the papers surveyed in the previous section explore the relationship between the size of the government (or expenditure as a percentage of GDP) and efficiency levels. The objective is to verify if additional pubic spending is associated with better education and health outcomes. While some papers have found a negative association between efficiency and expenditure levels (Gupta-Verhoeven 2001, Jarasuriya-Woodon 2003, and Afonso et.al. 2003 Herrera-Pang, 2005),

22 The precise definition and sources can be found in Appendix A, Table A.10.

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others have found a positive association (Evans et.al. 2003) and others have found no significant impact (Filmer and Pritchett, 1999). b. A government budget composition variable. Given that both education and health are labor-intensive activities, the government’s labor policies will determine the efficiency with which outputs are delivered. We chose a budget composition indicator to reflect this, in particular, the ratio of the wage bill to the total budget. A higher ratio is expected to be negatively correlated with efficiency. c. Per-capita GDP. We included the per-capita GDP to control for the Balassa-Samuleson effect in comparing across countries. If richer countries tend to be more inefficient (given higher wages in these countries), a negative sign is expected. However, it must be recalled that to obtain the efficiency scores in the “first stage” we constructed an auxiliary variable (the orthogonalized public expenditure). Hence the inclusion of this variable in the second stage is an attempt to control for any remaining Balassa- Samuleson effects. d. Urbanization. The clustering of agents makes it cheaper to provide services in urbanized areas rather than in rural. Higher degree of urbanization should reflect in higher efficiency, making positive as the expected sign of the coefficient on this variable. e. Prevalence of HIV/AIDS. Based on WHO mappings of the disease, we included a dummy variable in the most severely affected countries to control for the role of this epidemic in the poor health outcomes. Evans et al. (2000) report that AIDS lowers the disability adjusted life expectancy (DALE) by 15 years or more. AIDS also affects education outcomes both directly and indirectly (Drake, et al. 2003): directly because school-age children are affected: UNAIDS estimates that almost 4 million children have been infected since the epidemic began, and two-thirds have died. However, the indirect channel is relatively more important: AIDS leaves orphaned children who are more likely to drop-out of school or repeat. All these factors reflect how AIDS affects the demand for education. But the supply is also affected by the decreasing teacher labor force due to illness or death, or the need to care for family (Pigozzi, 2004). Prevalence of HIV/AIDS should be negatively associated with education and health outcomes. Consequently, efficiency scores should be negatively associated with the dummy variable. f. Income distribution inequality. Ravallion (2003) argues that, besides the mean income, its distribution affects social indicators because their attainment is mostly determined by the income of the poor. Hence, we controlled for the distribution of income by including the Gini coefficient as an explanatory variable. Higher inequality is expected to be associated with lower educational and health attainments, making negative the expected sign of this variable. g. Share of public sector in the provision of service. Services can be provided by both the public and private sectors, and efficiency indicators will differ across countries depending on the relative productivities of both sectors. Previous studies have included this variable to explain differences in outcomes (Le Grand, 1987; Berger and Messer,

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2002) or efficiency scores (Greene, 2003a). The specific variable we included was the ratio of publicly financed service over the total spending (sum of private and public spending). h. External aid. To the extent that countries do not have to incur the burden of taxation, they may not have the incentive to use resources in the most cost-effective way. Another channel through which aid-financing may affect efficiency is through the volatility and unpredictability of its flows. Given that this financing source is more volatile than other types of fiscal revenue (Bulir and Hamann, 2000), it is difficult to undertake medium-term planning within activities funded with aid resources. If this is the case, we would expect a negative association between aid-dependence and efficiency in those activities funded with aid, mostly health services. To our knowledge there are no previous attempts to establish a relationship between efficiency and the degree to which activities are financed by external aid. There is, however, recent evidence of a negative association between donor financing and some health outcomes (Bokhari, Gottret, and Gai, 2005). i. Institutional Variables. Countries with better institutions, more transparency, and less corruption are expected to have higher efficiency scores. Similarly, countries that have suffered wars or state failures are expected to register lower efficiency scores. To capture these effects, we included the World Bank Governance Indicators. The data on educational and health indicators are not available on a continuous annual basis for many countries. Thus, averages of the variables were computed over the 2009-2016 period for all variables. IV.2. Results The Tobit estimation on panel data is defined as follows.

),,,,,,

,,,(

CONSINSTEXTAIDGINIAIDSURBANGDPPC

PUBTOTGOVEXPWAGEfVRSTE

itititititit

itititit

where itVRSTE = Variable returns to scale DEA input or output efficiency scores.

itWAGE = Wages and salaries (% of total public expenditure)

itGOVEXP = Total government consumption expenditure (% of GDP)

itPUBTOT = Share of expenditures publicly financed (public/total)

itGDPPC = GDP per capita in constant 1995 US dollars

itURBAN = Urban population (% of total)

itAIDS = Dummy variable for HIV/AIDS

itGINI = Gini Coefficient

itEXTAID = External aid (% of fiscal revenue)

itINST = Institutional indicators WB Governance Indicators.

CONS = Constant

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Tables 14, 15, and 16 show the results for the single-input single-output education, health and infrastructure scores, with input efficiency scores (a) as dependent variable and output efficiency scores (b), respectively. The findings show:

a. Government expenditure (GOVEXP) is negatively associated with efficiency scores in education (Tables 14 a and b). This result is robust to changes in the output indicator selected. In the output efficiency case, the impact is ambiguous specially when the PISA Math and Science scores are the output indicators (Table 14 b). In health (Tables 15 a and b), the negative association is present in both input and output efficiency. In infrastructure, the expenditure variables (GOVEXP and PUBGFC10PC) are negative in the six output indicators that are used (Table 16a).23 There is a robust trade-off between size of expenditure and efficiency.

b. The wage bill within total expenditure (WAGE) and efficiency is ambiguous in

education; it is positive and significant when the enrollment indicators (Table 14 a) are considered, but negative when the PISA scores are considered (Table 14b). WAGE is insignificant in health and positive in infrastructure.

c. The share of public financing within the total (sum of public and private) is

robustly associated with lower efficiency scores. In the case of education (EDUCPUBTOT) it is negatively associated when input efficiency is considered (Table 14a) and a similar result is obtained in health (HEAPUBTOT, Table 15a). In health, the share of public financing is positively associated with output efficiency, rendering this impact as ambiguous in health. Further research would be needed to explain why this is the case in health services. In infrastructure it is negative (Table 16A).

d. GDP per capita is positively associated with efficiency scores, indicating that efficiency scores are higher in richer countries despite the orthogonalization procedure (Tables 14a, 15a, 16a).

e. Urbanization is negatively associated with efficiency scores in education (Tables 13a and b), while it is positively associated in health. However, scores are unrelated to this variable.

f. The effect of HIV/AIDS is negative on both education and health (Tables 13b and 14b).

g. Income distribution (GINI) is negatively associated with efficiency in education

(table 14a) and health (Table 15b). However, there are cases of sign reversals that

23 The govexp variable is total consumption expenditure while PUBGFC10PC is capital spending per capita. Hence the infrastructure equations include both types of spending.

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are puzzling, with the primary enrollment output efficiency scores being positively associated with GINI (Table 14b); in Health, GINI is positively associated with input efficiency in Measles Immunization and Maternal Survival (Table 15a) but negatively related with the output efficiency measures (Table 15b).

h. The external aid dependency ratio (EXTAID) is negatively associated with

efficiency in most education indicators, except with PISA output efficiency (Table 14b) where it is positive. In the case of health there is a negative association (Table 15b). Though no causality relationship can be inferred from the exercise, this is one of the results that merit more detailed research. This result might be explained by the volatility of aid as a funding source that limits medium term planning and effective budgeting.

Interpretation of these results requires caution due to several limitations. First, education and health outcomes are explained by multiple supply and demand factors (Filmer, 2003) which are not included here. The omission of one of these factors in the health or education production functions in the previous stage could explain some of the cross-country co-variation of the efficiency results (Ravallion, 2003). The goodness-of-fit analysis of the first stage indicated that no important factor seemed to be omitted. Of course, there can always be additional factors that could be included but the curse of dimensionality24 is particularly pressing in non-parametric statistical methods (even if the data were available). The second limitation derives from the intuitive question why the set of explanatory variables used in the second stage were not included in the first stage. The answer lies in that most of these variables are environmental and outside the control of the decision-making unit. The inclusion of these environmental variables would have had little justification from the production function perspective. Additionally, by maintaining the production function as simple as possible the dimensionality curse is avoided. Finally, the third limitation arises from the fact that if the variables used in the first stage to obtain the efficiency estimator are correlated with the second stage explanatory variables, the coefficients will be inconsistent and biased (Simar and Wilson, 2004; Grosskopf, 1996; Ravallion, 2003). To examine the extent of this potential problem, we calculated correlation coefficients between the “first-stage” inputs and the second-stage explanatory variables. The largest correlation coefficients were between GDP per capita and the teachers per pupil ratio and the literacy rate of adults. To examine the sensitivity of the results to the inclusion of GDP per capita, all the estimations were performed without this variable and none of the results changed.

24 As the number of outputs increases, the number of observations must increase exponentially to maintain a given mean-square error of the estimator. See Simar and Wilson (2000).

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V. Concluding Remarks and Directions for Future Work The paper presented an application of non-parametric methods to analyze the efficiency of public spending. Based on a sample of more than 140 countries, the paper estimated efficiency scores for 14 education output indicators, seven health output indicators, and seven infrastructure attainment indicators. Our results show that countries could achieve substantially higher education, health, and infrastructure quality levels: on average, developing countries reached output efficiency of about .6 in infrastructure, .8 in education, and .9 in health. That means that, for the same spending levels, peer countries achieve significantly higher outputs, with infrastructure being the area with more room for improvement. On the input side, efficiency is lower. Input efficiency scored .53, .75, and .86, for infrastructure, health, and education, respectively. These results indicate that developing countries deviate more from the frontier on the input (spending) side than on the output dimension. This is just an indicative figure, as the figures vary across countries and with the selected output indicator. It is crucial to identify what are the institutional or economic factors that cause some countries to be more efficient than others in service delivery. In terms of policy implications, it is vital to differentiate between the technically efficient level and the optimal or desired spending level. Even if a country is identified as an “efficient” benchmark country, it may very well still need to expand its public spending levels to achieve a target level of education or health attainment indicators. Such is the case of countries with low spending levels and low attainment indicators, close to the origin of the efficient frontier. The important thing is that countries expand their scale of operation along the efficient frontier. The methods used in the paper can be interpreted as tools to identify extreme cases of efficient countries and inefficient ones. Once the cases have been identified, more in-depth analysis is required to explain departures from the benchmark, as proposed and done by Sen (1981). Given that the methods are based on estimating the frontier directly from observed input-output combinations, they are subject to sampling variability and are sensitive to the presence of outliers. In a “second stage” the paper verified statistical association between the efficiency scores and environmental variables that are not under the control of the decision-making units. The Tobit regressions showed that the variables, which are negatively associated with efficiency scores, include the size of public expenditure, the proportion of the service that is publicly financed, the prevalence of the HIV/AIDS epidemic on health efficiency scores, income inequality on education efficiency scores, and external aid-financing on some of the efficiency scores.

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Table 14A. Correlates of Cross-Country variation in Education Input efficiency

Note: ***0.01 significance level, ** 0.05 significance level, *0.10 significance level, and insignificant otherwise

VARIABLES Net Primary Enrollment

Gross Primary Enrollment

Gross Secondary Enrollment

Net Secondary Enrollment

Average Years of School

Literacy of Youth

First Level Complete

Secondary Level Complete

Math PISA Scores

Science PISA Scores

wage 0.30** 0.35** 0.21** 0.16** 0.12 0.344* 0.12 0.10 -0.037 0.14 govexp -1.502*** -1.534*** -0.619*** -0.733*** -1.172*** 1.043* -1.383*** -0.934*** -1.317 -1.591* educpubtot -0.434 -0.922** -0.968*** -0.630*** -0.24 -1.871*** -0.416 -0.238 -0.717 -0.692 gdppc 8.1e-06* 2.6e-05*** 1.6e-05*** 1.2e-05*** 9.5e-06** -7.8E-06 1.93e-05*** 1.27e-05*** 9.7E-06 8.7E-06 urban -0.002 -0.0035** -0.0001 -0.0012 -0.0025** 0.0056** -0.0041*** -0.0024*** 0.00013 0.0022 aids 0.00491 0.068 0.0238 0.0339 0.0404 0.220*** 0.0554 0.0306 gini -0.0028 7.5E-05 -0.003* -0.003** -0.007*** -0.01*** -0.001 -0.0046*** 0.002 -0.0002 aid 0.000256 0.00428 -0.0203** -0.00687** -0.00738*** -0.00505 -0.00648 -0.00642*** 0.407* 0.362* Constant 0.999*** 0.550** 0.676*** 0.788*** 1.049*** 0.347 0.877*** 0.871*** 0.636 0.482

Observations 56 45 46 57 42 54 53 53 19 19

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Table 14B. Correlates of Cross-Country variation in Education Output efficiency

Note: ***0.01 significance level, ** 0.05 significance level, *0.10 significance level, and insignificant otherwise

VARIABLES Net Primary Enrollment 

Gross Primary Enrollment 

Net Secondary Enrollment 

Gross Secondary Enrollment 

Average Years of School 

Literacy of Youth 

First Level Complete 

Second Level Complete 

Math PISA Scores 

Science PISA Scores 

wage  ‐0.121  ‐0.0124  ‐0.133  ‐0.0687  ‐0.219  ‐0.19  ‐0.00286  ‐0.304  ‐0.388***  ‐0.333*** 

govexp  ‐0.251  ‐0.633**  0.475  0.610*  0.596*  0.509  ‐0.0435  1.091*  0.609**  0.439* 

educpubtot  ‐0.184  ‐0.556*  0.0138  ‐0.507  ‐0.216  ‐0.182  ‐0.21  ‐0.534  0.653*  0.331 

gdppc  1.91E‐07  3.43E‐06  1.80e‐05***  1.32e‐05***  1.22e‐05**  1.12e‐05**  ‐1.73E‐07  1.19E‐05  1.96e‐05***  1.49e‐05*** 

urban  ‐0.00017  ‐0.00188*  ‐0.00035  0.000197  0.000425  ‐0.00091  ‐0.00245  0.000623  ‐0.00330**  ‐0.00244* 

aids  ‐0.0890***  ‐0.0644*  ‐0.145***  ‐0.173***  ‐0.0867*  ‐0.142***  ‐0.0923  ‐0.041 

gini  0.00351***  0.00474***  ‐0.00153  ‐0.00664***  ‐0.00276  0.00415**  0.0066  ‐0.00779**  ‐0.00218  ‐0.00058 

aid  0.00700**  0.00438  ‐0.00362  ‐0.0340***  ‐0.0068  ‐0.0047  0.00173  ‐0.0103  0.376***  0.283** 

Constant  0.916***  0.856***  0.490***  0.870***  0.624***  0.722***  0.267  0.597***  0.688***  0.739*** 

Observations  58  61  59  48  54  55  54  54  19  19 

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Table 15A. Correlates of Cross-Country variation in HEALTH INPUT efficiency

VARIABLES Life Expectancy

Disability Adjusted Life Expectancy

Immunization DPT

Immunization Measles

Free Tuberculosis

Infant Survival Rate

Maternal Survival Rate

wage 0.0455 0.0684 0.0329 -0.0239 0.0406 -0.0794* -0.0226 govexp -0.436*** -0.421** -0.107 -0.231*** -0.0885 -0.190* -0.209*** heapubtot -0.105 0.106 -0.333 -0.296*** -0.160* -0.213** -0.312*** gdppc 6.50e-06*** 5.60e-06* 5.4E-06 6.44e-06*** 4.75e-06*** 1.14e-05*** 6.26e-06*** urban 0.000567 0.000925 -0.00054 -3.9E-05 0.00186*** 0.000492 9.09E-06 aids 0.0114 -0.00872 -0.0424 0.00163 -0.00517 0.000387 0.000924 gini -0.00053 0.000577 0.00129 0.000763* 0.000273 8.77E-05 0.000801** aid -0.00033 -4.2E-05 -0.0012 -0.00088 -0.00149 -0.00162 -0.00078 Constant 0.458*** 0.449*** 0.473*** 0.415*** 0.300*** 0.356*** 0.407***

Observations 67 67 67 67 62 64 67

Note: ***0.01 significance level, ** 0.05 significance level, *0.10 significance level, and insignificant otherwise

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Table 15B. Correlates of Cross-Country variation in HEALTH OUTPUTefficiency

Note: ***0.01 significance level, ** 0.05 significance level, *0.10 significance level, and insignificant otherwise

VARIABLES Life Expectancy 

Disability Adjusted Life Expectancy 

Immunization DPT 

Immunization Measles 

Free Tuberculosis 

Infant Survival Rate 

Maternal Survival Rate 

wage  0.0189  0.0814**  ‐0.0125  ‐0.08  0.00275  ‐0.0134  ‐0.00143 

govexp  ‐0.262***  ‐0.402***  0.352  0.369  ‐0.00890**  ‐0.0144  0.000172 

heapubtot  0.294***  0.266**  0.0612  0.29  0.00444  0.0918***  0.000682 

gdppc  9.48E‐07  1.68E‐06  5.11E‐06  5.56E‐06  ‐9.50E‐08  4.97E‐07  1.03E‐08 

urban  0.000585  0.00131***  ‐0.00126  ‐0.00091  3.91e‐05**  6.34E‐05  8.60E‐07 

aids  ‐0.111***  ‐0.0948***  ‐0.0788**  ‐0.0689*  ‐0.00128*  ‐0.0209***  ‐0.00261*** 

gini  ‐0.00158**  ‐0.00226***  0.000412  ‐0.00029  ‐0.000121***  ‐0.00027  ‐4.73E‐06 

aid  ‐0.00422***  ‐0.00172  0.00246  0.00109  ‐0.0001  ‐0.00165***  ‐0.000342*** 

Constant  0.912***  0.892***  0.883***  0.859***  1.003***  0.982***  1.000*** 

Observations  69  69  69  69  63  69  69 

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Table 16A Correlates of cross-country variation in Capital Spending Input efficiency

Note: ***0.01 significance level, ** 0.05 significance level, *0.10 significance level, and insignificant otherwise

VARIABLES Quality of overall infrastructure 

Quality of roads Quality of railroad infrastructure 

Quality of port infrastructure 

Quality of air transport infrastructure 

Quality of electricity supply 

wage  18.55*  19.21*  5.137  25.25**  11.31  16.74** 

govexp  ‐39.17*  ‐39.59  ‐37.47*  ‐45.27*  ‐26.91  ‐35.98** 

pubshare  ‐0.183*  ‐0.163  ‐0.308***  ‐0.168  ‐0.191*  ‐0.235*** 

pubgfcp10pc  ‐0.000353***  ‐0.000419***  ‐0.000202*  ‐0.000461***  ‐0.000396***  ‐0.000291*** 

gdppc10  1.73e‐05**  2.86e‐05***  9.76E‐06  2.42e‐05***  1.89e‐05**  1.38e‐05** 

urban  0.000526  ‐0.0002  ‐0.00011  0.000439  0.000532  0.000109 

gini  0.00218  0.00247  0.00258*  0.00329**  0.00438***  0.00155 

aid  0.00155  0.00197  0.00161  0.00158  0.00285  0.000551 

Voice and Accountability  ‐0.0191  ‐0.0185  ‐0.0242  ‐0.0228  ‐0.0161  ‐0.00367 

Rule of law  0.129**  0.131  0.115*  0.137*  0.149**  0.072 

Regulatory Quality  ‐0.0137  ‐0.00223  ‐0.0318  ‐0.00663  ‐0.0251  ‐0.0175 

Political Stability and Absence of Violence 

‐0.0272  ‐0.0296  ‐0.0115  ‐0.0322  ‐0.0311  ‐0.0227 

Government Effectiveness 

0.00553  0.00565  ‐0.0125  0.0246  0.0378  0.00317 

Control of Corruption  ‐0.0627  ‐0.0605  ‐0.0463  ‐0.0696  ‐0.109**  ‐0.0407 

Constant  0.140*  0.142  0.248***  0.0971  0.054  0.190*** 

Observations  58  58  53  58  58  58 

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Table 16B. Correlates of cross-country variation in Capital Spending Output efficiency

Note: ***0.01 significance level, ** 0.05 significance level, *0.10 significance level, and insignificant otherwise

VARIABLES Quality of overall infrastructure 

Quality of roads Quality of railroad infrastructure 

Quality of port infrastructure 

Quality of air transport infrastructure 

Quality of electricity supply 

wage  1.797  20.85*  ‐42.68**  21.80*  10.26  10.96 

govexp  4.265  ‐39.83  49.14  ‐28.22  ‐54.46**  53.28* 

pubshare  ‐0.291***  ‐0.220*  ‐0.412**  ‐0.191  ‐0.0434  ‐0.155 

pubgfcp10pc  5.01E‐05  4.85E‐05  0.000317  ‐5.75E‐05  ‐0.00017  ‐0.0002 

gdppc10  ‐1.82E‐06  5.84E‐06  ‐1.81E‐05  2.70E‐06  1.87E‐06  1.23E‐05 

urban  0.000218  ‐0.00131  0.000193  0.000241  0.00111  0.00224** 

gini  4.27E‐05  0.00165  ‐0.00014  0.00165  0.000841  ‐0.00282 

aid  0.00145  0.0037  ‐0.00112  0.000419  ‐0.00536  ‐0.00082 

Voice and Accountability  ‐0.100***  ‐0.0914***  ‐0.0708*  ‐0.0331  ‐0.0619**  ‐0.123*** 

Rule of law  ‐0.0581  ‐0.113  0.0839  0.00519  0.0229  ‐0.126 

Regulatory Quality  0.0491  0.019  ‐0.0954*  0.0164  0.113***  0.0905* 

Political Stability and Absence of Violence 

0.0222  0.00201  0.0376  ‐0.0162  ‐0.0152  0.0107 

Government Effectiveness 

0.146**  0.229***  0.141  0.112  0.135*  0.218** 

Control of Corruption  0.056  0.0948  ‐0.0865  ‐0.00461  ‐0.0629  0.085 

Constant  0.654***  0.624***  0.577***  0.544***  0.652***  0.546*** 

Observations  63  63  59  63  63  63 

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Appendix A. International Benchmarking Exercise

Table A.1 Efficiency Score for Selected Education Indicators (Single Input - Output)

PISA Math Score  PISA Science Score 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

dmu  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

ALB  0.678  0.678  0.738  0.738  0.773  0.688  0.774  0.774 

ARG  0.697  0.629  0.789  0.789  0.697  0.650  0.829  0.824 

AUS  0.878  0.825  0.942  0.942  0.947  0.910  0.984  0.981 

AUT  0.765  0.703  0.928  0.928  0.715  0.710  0.936  0.929 

AZE  0.999  0.915  0.886  0.885  0.876  0.876  0.769  0.769 

BGR  0.831  0.766  0.824  0.813  0.831  0.780  0.860  0.841 

BRA  0.579  0.579  0.713  0.713  0.660  0.582  0.762  0.756 

CAN  0.877  0.862  0.974  0.974  1.000  1.000  1.000  1.000 

CHE  1.000  1.000  1.000  1.000  1.000  1.000  1.000  1.000 

CHL  0.798  0.720  0.788  0.788  0.798  0.754  0.848  0.847 

CHN  0.959  0.924  0.993  0.993  0.959  0.918  0.983  0.981 

COL  0.633  0.633  0.720  0.720  0.721  0.642  0.774  0.771 

CRI  0.530  0.530  0.748  0.748  0.604  0.547  0.794  0.783 

CYP  0.548  0.507  0.817  0.817  0.548  0.506  0.819  0.802 

CZE  1.000  0.973  1.000  0.981  1.000  1.000  1.000  1.000 

DEU  0.973  0.927  0.966  0.961  1.000  0.989  1.000  0.996 

DNK  0.420  0.398  0.948  0.948  0.420  0.400  0.923  0.923 

DOM  0.745  0.745  0.621  0.615  0.745  0.745  0.644  0.636 

ESP  0.870  0.868  0.918  0.914  0.910  0.889  0.959  0.949 

FIN  0.567  0.565  0.983  0.983  1.000  1.000  1.000  1.000 

FRA  0.768  0.704  0.925  0.925  0.768  0.719  0.940  0.933 

GBR  0.706  0.686  0.920  0.920  0.776  0.756  0.968  0.961 

GEO  0.699  0.699  0.755  0.755  0.797  0.712  0.780  0.779 

HRV  0.813  0.783  0.864  0.864  0.813  0.808  0.912  0.911 

HUN  0.798  0.794  0.903  0.903  0.834  0.814  0.930  0.928 

IDN  0.679  0.679  0.708  0.708  0.679  0.679  0.744  0.743 

ISL  0.512  0.472  0.930  0.930  0.458  0.458  0.894  0.894 

ITA  1.000  1.000  1.000  1.000  1.000  1.000  1.000  1.000 

KAZ  1.000  1.000  1.000  1.000  1.000  1.000  1.000  1.000 

KGZ  0.571  0.571  0.619  0.619  0.571  0.571  0.625  0.618 

KOR  1.000  1.000  1.000  1.000  1.000  1.000  1.000  1.000 

LBN  0.913  0.913  0.978  0.860  0.913  0.913  0.966  0.844 

LTU  0.772  0.762  0.893  0.893  0.772  0.770  0.915  0.914 

LVA  0.665  0.661  0.901  0.901  0.696  0.684  0.931  0.923 

MDA  0.614  0.552  0.784  0.784  0.614  0.564  0.810  0.799 

MEX  0.707  0.629  0.773  0.773  0.707  0.636  0.787  0.783 

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Table A.1 (continued) 

PISA Math Score  PISA Science Score 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

dmu  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

MKD  0.653  0.653  0.694  0.694  0.653  0.653  0.726  0.724 

NLD  0.789  0.772  0.970  0.970  0.851  0.805  0.975  0.970 

NOR  0.482  0.448  0.934  0.934  0.482  0.457  0.921  0.921 

NZL  0.607  0.575  0.948  0.948  0.655  0.642  0.989  0.968 

PAN  0.855  0.855  0.740  0.727  0.855  0.855  0.776  0.765 

PER  0.704  0.704  0.702  0.702  0.704  0.704  0.727  0.725 

POL  0.855  0.794  0.934  0.934  0.855  0.830  0.955  0.954 

ROM  0.955  0.882  0.884  0.866  0.955  0.881  0.869  0.869 

RUS  0.915  0.907  0.976  0.927  0.915  0.912  0.972  0.953 

SVK  0.946  0.945  0.987  0.960  0.946  0.933  0.958  0.953 

SVN  0.764  0.720  0.945  0.945  0.785  0.768  0.970  0.963 

SWE  0.524  0.479  0.923  0.923  0.490  0.486  0.911  0.911 

THA  0.781  0.700  0.780  0.780  0.781  0.711  0.801  0.801 

TTO  0.715  0.639  0.777  0.777  0.715  0.645  0.790  0.786 

TUN  0.556  0.556  0.689  0.689  0.556  0.556  0.745  0.737 

TUR  0.782  0.719  0.809  0.809  0.782  0.731  0.832  0.832 

URY  0.716  0.647  0.790  0.790  0.716  0.660  0.816  0.812 

USA  0.805  0.795  0.894  0.894  0.900  0.852  0.947  0.946 

VNM  0.756  0.692  0.924  0.924  0.815  0.807  0.993  0.985 

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Table A.2 Efficiency Score for Selected Education Indicators (Single Input - Output)

School enrollment, primary (% gross) Secondary Education Gross

Enrollment Input Efficiency Output Efficiency Input Efficiency Output Efficiency

Country FDH DEA FDH DEA FDH DEA FDH DEA

AGO 0.985 0.715 0.991 0.840 0.613 0.613 0.170 0.170 ALB 0.645 0.645 0.926 0.776 0.651 0.651 0.639 0.588 ARG 0.910 0.617 0.778 0.778 0.571 0.571 0.644 0.644 ARM 0.642 0.642 0.883 0.738 0.647 0.647 0.740 0.677 ATG 0.944 0.944 0.913 0.890 AUS 0.614 0.614 0.887 0.757 1.000 1.000 1.000 1.000 AUT 0.526 0.526 0.690 0.690 0.648 0.549 0.708 0.708 AZE 0.865 0.865 0.909 0.851 0.867 0.867 0.992 0.892 BDI 0.966 0.776 0.886 0.886 0.550 0.550 0.172 0.172 BEN 0.964 0.696 0.831 0.831 0.559 0.559 0.295 0.295 BFA 0.554 0.554 0.566 0.566 0.559 0.559 0.156 0.156 BGD 0.877 0.613 0.920 0.780 0.596 0.596 0.347 0.347 BGR 0.695 0.695 0.920 0.771 0.701 0.701 0.740 0.721 BLR 0.584 0.584 0.836 0.704 BLZ 0.772 0.555 0.768 0.768 0.527 0.527 0.540 0.540 BOL 0.513 0.513 0.690 0.690 0.519 0.519 0.575 0.575 BRA 0.928 0.671 0.831 0.831 0.756 0.571 0.726 0.726 BRB 0.529 0.529 0.670 0.670 0.750 0.577 0.736 0.736 BWA 0.413 0.413 0.737 0.737 0.421 0.421 0.576 0.576 CAF 0.560 0.560 0.626 0.626 CAN 0.614 0.614 0.835 0.712 0.875 0.663 0.728 0.728 CHE 0.687 0.687 0.943 0.786 0.703 0.703 0.764 0.747 CHL 0.655 0.655 0.900 0.760 0.662 0.662 0.718 0.669 CHN 0.666 0.666 0.960 0.819 0.672 0.672 0.654 0.617 CIV 0.557 0.557 0.580 0.580 0.563 0.563 0.199 0.199

CMR 0.856 0.580 0.907 0.758 0.582 0.582 0.304 0.304 COG 0.791 0.564 0.765 0.765 COL 0.994 0.717 0.988 0.839 0.600 0.600 0.663 0.663 COM 0.551 0.551 0.717 0.717 CPV 0.822 0.588 0.767 0.767 0.560 0.560 0.609 0.609 CRI 0.782 0.529 0.777 0.777 0.592 0.493 0.700 0.700 CYP 0.422 0.422 0.689 0.689 0.431 0.431 0.688 0.688 CZE 0.793 0.793 0.926 0.831 0.801 0.801 0.940 0.816 DEU 0.688 0.688 0.948 0.791 0.979 0.740 0.814 0.794 DJI 0.563 0.563 0.449 0.449

DNK 0.278 0.278 0.689 0.689 0.400 0.377 0.859 0.859 DOM 0.720 0.720 0.958 0.818 0.724 0.724 0.759 0.610

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Table A.2 (continued) School enrollment, primary (% gross) Secondary Education Gross Enrollment

Input Efficiency Output Efficiency Input Efficiency Output Efficiency Country FDH DEA FDH DEA FDH DEA FDH DEA

ECU 0.935 0.644 0.950 0.796 0.585 0.585 0.585 0.585 EGY 0.636 0.636 0.927 0.771 0.641 0.641 0.645 0.586 ESP 0.706 0.706 0.963 0.814 1.000 0.989 1.000 0.991 EST 0.585 0.585 0.837 0.706 0.830 0.640 0.737 0.737 ETH 0.551 0.551 0.657 0.657 0.557 0.557 0.234 0.234 FIN 0.384 0.384 0.685 0.685 0.551 0.456 0.778 0.778 FJI 0.600 0.600 0.885 0.745

FRA 0.536 0.536 0.731 0.731 0.764 0.658 0.801 0.801 GAB 0.805 0.805 0.533 0.465 GBR 0.525 0.525 0.731 0.731 0.646 0.546 0.707 0.707 GEO 1.000 0.736 1.000 0.858 0.678 0.678 0.741 0.704 GHA 0.532 0.532 0.736 0.736 0.538 0.538 0.421 0.421 GIN 0.558 0.558 0.597 0.597 0.564 0.564 0.280 0.280

GMB 0.560 0.560 0.586 0.586 0.565 0.565 0.380 0.380 GNB 0.844 0.620 0.922 0.780 GTM 0.943 0.651 0.971 0.808 0.640 0.640 0.483 0.438 GUY 0.616 0.616 0.721 0.616 0.748 0.639 0.712 0.712 HND 0.791 0.575 0.772 0.772 0.539 0.539 0.494 0.494 HRV 0.670 0.670 0.839 0.718 0.677 0.677 0.764 0.725 HTI 0.576 0.576 0.317 0.317

HUN 0.651 0.651 0.890 0.750 0.794 0.671 0.792 0.736 IDN 0.649 0.649 0.945 0.794 0.654 0.654 0.629 0.581 IND 0.592 0.592 0.904 0.767 0.598 0.598 0.444 0.444 IRN 0.752 0.752 0.993 0.868 0.757 0.757 0.851 0.708 ISL 0.344 0.344 0.675 0.675 0.494 0.412 0.782 0.782 ITA 0.821 0.821 0.930 0.849 1.000 0.860 1.000 0.894 JAM 0.533 0.533 0.636 0.636 KAZ 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 KEN 0.812 0.592 0.773 0.773 0.552 0.552 0.426 0.426 KGZ 0.536 0.536 0.700 0.700 0.542 0.542 0.616 0.616 KHM 1.000 0.740 1.000 0.853 0.602 0.602 0.308 0.308 KNA 0.971 0.971 0.806 0.796 KOR 0.668 0.668 0.884 0.756 0.678 0.678 0.779 0.740 LAO 1.000 0.739 1.000 0.854 0.621 0.621 0.340 0.340 LBN 0.913 0.913 0.909 0.872 0.913 0.913 0.814 0.761 LKA 0.757 0.757 0.913 0.800 0.760 0.760 0.925 0.772 LSO 0.521 0.521 0.744 0.744 0.527 0.527 0.330 0.330 LTU 0.626 0.626 0.886 0.731 0.888 0.662 0.806 0.727 LVA 0.532 0.532 0.704 0.704 0.541 0.541 0.694 0.694

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Table A.2 (continued) School enrollment, primary (% gross) Secondary Education Gross Enrollment

Input Efficiency Output Efficiency Input Efficiency Output Efficiency Country FDH DEA FDH DEA FDH DEA FDH DEA

MAR 0.914 0.623 0.927 0.781 0.571 0.571 0.440 0.440 MDA 0.500 0.500 0.638 0.638 0.507 0.507 0.628 0.628 MDG 1.000 1.000 1.000 1.000 0.569 0.569 0.231 0.231 MEX 0.576 0.576 0.859 0.718 0.583 0.583 0.631 0.631 MKD 0.616 0.616 0.744 0.635 0.623 0.623 0.596 0.596 MLI 0.562 0.562 0.545 0.545 0.567 0.567 0.278 0.278

MNG 0.916 0.664 0.969 0.812 0.623 0.623 0.669 0.669 MOZ 0.543 0.543 0.723 0.723 0.548 0.548 0.172 0.172 MRT 0.585 0.585 0.803 0.677 0.590 0.590 0.185 0.185 MUS 0.699 0.699 0.941 0.792 0.705 0.705 0.718 0.704 MWI 0.975 0.908 0.960 0.960 0.555 0.555 0.229 0.229 MYS 0.553 0.553 0.693 0.693 0.562 0.562 0.491 0.491 NAM 0.441 0.441 0.746 0.746 0.448 0.448 0.457 0.457 NER 0.549 0.549 0.461 0.461 NGA 0.643 0.643 0.783 0.655 0.647 0.647 0.307 0.281 NIC 1.000 0.742 1.000 0.851 0.580 0.580 0.492 0.492 NLD 0.543 0.543 0.731 0.731 0.776 0.755 0.881 0.881 NOR 0.315 0.315 0.681 0.681 0.454 0.388 0.795 0.795 NPL 0.997 0.916 0.953 0.953 0.567 0.567 0.363 0.363 NZL 0.417 0.417 0.680 0.680 0.596 0.556 0.852 0.852 OMN 0.751 0.751 0.985 0.860 0.764 0.764 0.941 0.788 PAK 0.612 0.612 0.780 0.664 0.617 0.617 0.247 0.247 PAN 0.836 0.836 0.968 0.891 0.839 0.839 0.758 0.665 PER 0.675 0.675 0.963 0.795 0.680 0.680 0.735 0.699 PHL 0.955 0.691 0.992 0.831 0.648 0.648 0.671 0.615 POL 0.620 0.620 0.878 0.720 0.757 0.634 0.787 0.704 PRY 0.586 0.586 0.863 0.728 0.592 0.592 0.482 0.482 ROM 0.813 0.813 0.872 0.793 0.818 0.818 0.933 0.824 RUS 0.762 0.762 0.916 0.806 0.769 0.769 0.885 0.746 RWA 0.979 0.894 0.949 0.949 0.557 0.557 0.220 0.220 SAU 0.458 0.458 0.706 0.706 0.657 0.509 0.740 0.740 SDN 0.613 0.613 0.585 0.498 SEN 0.537 0.537 0.557 0.557 0.543 0.543 0.253 0.253 SLB 0.815 0.559 0.782 0.782 SLE 1.000 0.782 1.000 0.873 0.569 0.569 0.239 0.239 SLV 1.000 0.712 1.000 0.840 0.624 0.624 0.473 0.473 SVK 0.788 0.788 0.930 0.832 0.795 0.795 0.922 0.797 SVN 0.541 0.541 0.674 0.674 0.550 0.550 0.690 0.690 SWE 0.522 0.355 0.750 0.750 0.505 0.376 0.719 0.719

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Table A.2 (continued) School enrollment, primary (% gross) Secondary Education Gross Enrollment

Input Efficiency Output Efficiency Input Efficiency Output Efficiency Country FDH DEA FDH DEA FDH DEA FDH DEA

SWZ 0.765 0.562 0.776 0.776 0.522 0.522 0.411 0.411 TCD 0.575 0.575 0.745 0.622 0.580 0.580 0.161 0.161 TGO 0.977 0.747 0.863 0.863 THA 0.648 0.648 0.869 0.731 0.655 0.655 0.647 0.598 TJK 0.560 0.560 0.675 0.675 0.565 0.565 0.611 0.611

TKM 0.711 0.711 0.818 0.694 TTO 0.566 0.566 0.863 0.728 0.577 0.577 0.627 0.627 TUN 0.763 0.519 0.750 0.750 0.521 0.521 0.649 0.649 TUR 0.641 0.641 0.900 0.752 0.649 0.649 0.659 0.604 TZA 0.562 0.562 0.622 0.622 0.568 0.568 0.214 0.214 UGA 0.918 0.642 0.937 0.793 0.574 0.574 0.190 0.190 UKR 0.510 0.510 0.715 0.715 0.517 0.517 0.682 0.682 URY 0.863 0.601 0.919 0.771 0.589 0.589 0.646 0.646 USA 0.620 0.620 0.881 0.723 0.634 0.634 0.757 0.681 VCT 0.552 0.552 0.713 0.713 VEN 0.591 0.591 0.840 0.712 0.599 0.599 0.600 0.600 VNM 0.558 0.558 0.728 0.728 0.564 0.564 0.515 0.515 VUT 0.923 0.673 0.819 0.819 ZAF 0.527 0.527 0.666 0.666 0.643 0.536 0.700 0.700 ZAR 0.557 0.557 0.683 0.683 ZWE 0.533 0.533 0.691 0.691 0.539 0.539 0.300 0.300

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Table A.3 Efficiency Score for Selected Education Indicators (Two Inputs – Single Output)

Input (Public Expenditure‐ Adult Literacy Rate) 

  Primary Net Enrollment  Secondary Net Enrollment 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

dmu  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

AGO  0.962  0.847  0.873  0.824  0.963  0.838  0.545  0.306 

ALB  0.869  0.798  0.941  0.937  0.940  0.833  0.933  0.766 

AZE  1.000  0.942  1.000  0.970 

BDI  0.947  0.820  0.931  0.926  0.904  0.792  0.477  0.346 

BEN  0.984  0.964  0.959  0.958  1.000  1.000  1.000  1.000 

BFA  0.951  0.910  0.660  0.660  0.973  0.910  0.585  0.478 

BGD  1.000  0.948  1.000  0.917  1.000  0.957  1.000  0.839 

BGR  0.904  0.845  0.965  0.962  0.927  0.854  0.961  0.794 

BLR  0.816  0.679  0.930  0.930  0.983  0.845  0.840  0.840 

BOL  0.757  0.656  0.906  0.904  0.911  0.731  0.851  0.692 

BRA  0.740  0.654  0.941  0.938  1.000  0.811  1.000  0.822 

CAF  0.975  0.921  0.696  0.695  0.974  0.918  0.361  0.284 

CHL  0.868  0.750  0.944  0.940  0.938  0.832  0.976  0.767 

CHN  1.000  1.000  1.000  1.000  0.928  0.825  0.913  0.753 

CIV  0.947  0.875  0.709  0.708  0.969  0.894  0.722  0.655 

CMR  0.923  0.815  0.954  0.899  0.964  0.801  0.746  0.533 

COG  0.804  0.719  0.917  0.909  0.874  0.710  0.685  0.513 

COL  0.877  0.719  0.925  0.922  1.000  0.861  1.000  0.817 

COM  0.957  0.861  0.826  0.823  1.000  0.908  1.000  0.833 

CPV  0.856  0.766  0.973  0.971  1.000  0.833  1.000  0.790 

CRI  0.727  0.623  0.980  0.976  1.000  0.850  1.000  0.868 

CYP  0.551  0.504  0.982  0.982  0.923  0.717  0.756  0.756 

DOM  1.000  0.848  1.000  0.878  0.999  0.862  0.898  0.731 

ECU  0.873  0.742  0.952  0.949  0.995  0.859  1.000  0.820 

EGY  1.000  0.904  1.000  0.980  1.000  0.900  1.000  0.848 

ESP  1.000  0.867  1.000  0.997  1.000  1.000  1.000  1.000 

EST  0.771  0.677  0.963  0.963  0.980  0.828  0.847  0.847 

GEO  0.953  0.952  1.000  0.998  0.916  0.873  0.984  0.828 

GHA  0.816  0.742  0.858  0.852  0.914  0.750  0.848  0.592 

GIN  1.000  0.958  1.000  0.799  1.000  0.992  1.000  0.856 

GMB  0.965  0.890  0.704  0.702  1.000  0.963  1.000  0.928 

GNB  0.989  0.890  0.965  0.691 

GTM  1.000  0.841  1.000  0.920  1.000  0.835  1.000  0.642 

GUY  0.961  0.780  0.816  0.814  1.000  0.883  1.000  0.829 

HND  0.857  0.732  0.961  0.960  0.857  0.725  0.796  0.626 

HRV  0.851  0.728  0.880  0.880  0.997  0.850  0.976  0.799 

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  Table A.3 (continued) 

  Input (Public Expenditure‐ Adult Literacy Rate) 

  Primary Net Enrollment  Secondary Net Enrollment 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

dmu  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

IDN  0.898  0.797  0.924  0.921  0.898  0.803  0.812  0.694 

IND  0.939  0.836  0.975  0.919  1.000  0.854  1.000  0.742 

IRN  1.000  1.000  1.000  1.000  1.000  0.917  1.000  0.876 

ITA  0.891  0.854  0.977  0.977  1.000  0.891  1.000  0.850 

KAZ  1.000  1.000  1.000  1.000  1.000  1.000  1.000  1.000 

KEN  0.855  0.741  0.851  0.843  0.910  0.746  0.759  0.572 

KGZ  0.812  0.673  0.883  0.883  0.860  0.747  0.691  0.691 

KHM  0.997  0.871  0.982  0.962 

LAO  1.000  0.926  1.000  0.945  1.000  0.903  1.000  0.673 

LBN  1.000  1.000  1.000  1.000  1.000  1.000  1.000  0.739 

LKA  1.000  0.993  1.000  0.995  1.000  0.983  1.000  0.974 

LSO  0.798  0.709  0.807  0.801  0.835  0.713  0.647  0.501 

LTU  0.845  0.733  0.971  0.971  0.981  0.832  0.811  0.811 

LVA  0.737  0.649  0.974  0.974  0.980  0.789  0.827  0.827 

MAR  0.951  0.824  0.973  0.967  1.000  0.829  1.000  0.724 

MDA  0.742  0.629  0.878  0.878  0.861  0.715  0.688  0.688 

MDG  0.905  0.795  0.662  0.385 

MEX  0.819  0.709  0.958  0.954  0.898  0.751  0.851  0.694 

MLI  0.968  0.933  0.621  0.621  0.995  0.972  0.895  0.768 

MNG  0.858  0.796  0.966  0.966  0.928  0.819  0.947  0.749 

MOZ  0.931  0.851  0.878  0.875  0.931  0.827  0.461  0.375 

MUS  0.921  0.863  0.967  0.964  0.996  0.880  0.937  0.827 

MWI  0.966  0.858  0.989  0.984  0.886  0.794  0.581  0.415 

MYS  0.802  0.681  0.983  0.980  0.791  0.658  0.713  0.577 

NAM  0.632  0.568  0.879  0.877 

NER  1.000  1.000  1.000  1.000  1.000  1.000  1.000  0.639 

NPL  0.987  0.880  0.988  0.982  1.000  0.866  1.000  0.750 

PAK  1.000  0.898  1.000  0.734  1.000  0.898  1.000  0.500 

PAN  1.000  1.000  1.000  1.000  1.000  0.906  1.000  0.723 

PER  0.921  0.848  0.948  0.945  0.971  0.887  0.962  0.838 

PHL  0.908  0.824  0.940  0.937  0.946  0.816  0.873  0.736 

PRY  0.882  0.723  0.895  0.891  0.894  0.729  0.715  0.572 

ROM  0.954  0.854  0.918  0.906  0.982  0.916  0.987  0.879 

RUS  0.915  0.852  0.962  0.959  0.915  0.861  0.973  0.812 

RWA  0.967  0.835  0.979  0.973  0.876  0.781  0.573  0.388 

SAU  0.547  0.488  0.933  0.930  1.000  0.817  1.000  0.840 

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Table A.3 (continued) 

Input (Public Expenditure‐ Adult Literacy Rate) 

  Primary Net Enrollment  Secondary Net Enrollment 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

SEN  0.902  0.820  0.716  0.714  0.924  0.830  0.718  0.591 

SLE  1.000  1.000  1.000  1.000  1.000  0.997  1.000  0.863 

SLV  0.983  0.816  0.944  0.943  0.983  0.811  0.854  0.703 

SWZ  0.752  0.663  0.811  0.803  0.834  0.679  0.759  0.546 

TCD  1.000  1.000  1.000  0.854  1.000  0.992  1.000  0.580 

TGO  0.965  0.835  0.947  0.942  0.981  0.828  0.875  0.646 

THA  0.894  0.782  0.938  0.935  0.967  0.871  0.986  0.818 

TUN  1.000  0.721  1.000  0.993  1.000  0.820  1.000  0.843 

TUR  0.896  0.754  0.951  0.948  0.969  0.816  0.929  0.745 

TZA  0.894  0.777  0.847  0.841  0.895  0.767  0.409  0.322 

UGA  0.914  0.814  0.990  0.933  0.914  0.788  0.342  0.239 

UKR  0.749  0.660  0.961  0.961  0.912  0.755  0.755  0.755 

URY  0.857  0.725  0.983  0.983  0.927  0.785  0.751  0.751 

VNM  0.902  0.778  0.989  0.986 

ZAF  0.975  0.767  0.935  0.754 

ZAR  0.895  0.766  0.516  0.405 

ZWE  0.830  0.710  0.879  0.877  0.832  0.697  0.523  0.413 

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Table A.4 Efficiency Score for Selected Health Indicators (Single Inputs – Output)

  Disability Adjusted Life Expectancy  Immunization, DTP 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

dmu  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

AGO  0.504  0.504  0.76  0.746  0.439  0.439  0.704  0.704 

ALB  0.527  0.527  0.954  0.94  0.775  0.638  0.997  0.997 

ARG  0.551  0.551  0.951  0.94  0.495  0.495  0.944  0.941 

ARM  0.521  0.521  0.927  0.913  0.454  0.454  0.951  0.951 

ATG  0.844  0.594  0.96  0.952  0.826  0.68  1  0.997 

AUS  1  1  1  1  0.415  0.415  0.929  0.929 

AUT  0.768  0.653  0.98  0.98  0.31  0.31  0.918  0.918 

AZE  0.619  0.619  0.875  0.874  0.565  0.565  0.899  0.897 

BDI  0.472  0.472  0.7  0.7  0.404  0.404  0.962  0.962 

BEN  0.481  0.481  0.777  0.759  0.413  0.413  0.789  0.789 

BFA  0.476  0.476  0.711  0.711  0.409  0.409  0.915  0.915 

BGD  0.491  0.491  0.882  0.863  0.424  0.424  0.968  0.968 

BGR  0.529  0.529  0.924  0.911  0.463  0.463  0.941  0.941 

BHR  0.897  0.897  0.984  0.975  0.881  0.881  1  0.999 

BHS  0.586  0.586  0.921  0.916  0.523  0.523  0.983  0.98 

BLR  0.529  0.529  0.893  0.88  0.472  0.472  0.987  0.987 

BLZ  0.503  0.503  0.888  0.871  0.433  0.433  0.967  0.967 

BOL  0.492  0.492  0.899  0.88  0.423  0.423  0.957  0.957 

BRA  0.528  0.528  0.928  0.915  0.465  0.465  0.978  0.978 

BRB  0.519  0.519  0.955  0.94  0.448  0.448  0.922  0.922 

BWA  0.531  0.531  0.717  0.707  0.467  0.467  0.961  0.961 

CAF  0.475  0.475  0.583  0.582  0.407  0.407  0.43  0.43 

CAN  0.849  0.771  0.986  0.986  0.343  0.343  0.916  0.916 

CHE  1  1  1  1  0.34  0.34  0.968  0.968 

CHL  0.86  0.857  0.995  0.988  0.51  0.51  0.944  0.941 

CHN  0.534  0.534  0.933  0.921  0.973  0.973  1  1 

CIV  0.49  0.49  0.712  0.696  0.421  0.421  0.792  0.792 

CMR  0.491  0.491  0.722  0.707  0.423  0.423  0.853  0.853 

COG  0.501  0.501  0.752  0.737  0.431  0.431  0.828  0.828 

COL  0.732  0.515  0.96  0.94  0.425  0.425  0.906  0.906 

COM  0.478  0.478  0.826  0.807  0.411  0.411  0.853  0.853 

CPV  0.495  0.495  0.906  0.888  0.429  0.429  0.957  0.957 

CRI  0.973  0.777  0.98  0.979  0.394  0.394  0.906  0.906 

CYP  1  1  1  1  1  0.823  1  0.999 

CZE  0.706  0.578  0.95  0.95  0.42  0.414  0.993  0.993 

DEU  0.776  0.612  0.974  0.974  0.311  0.311  0.961  0.961 

DJI  0.473  0.473  0.785  0.785  0.406  0.406  0.85  0.85 

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Table A.4 (continued) 

  Disability Adjusted Life Expectancy  Immunization, DTP 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

dmu  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

DMA  0.512  0.512  0.915  0.899  0.442  0.442  0.986  0.986 

DNK  0.532  0.496  0.967  0.967  0.278  0.278  0.931  0.931 

DOM  0.546  0.546  0.933  0.922  0.477  0.477  0.863  0.863 

DZA  0.773  0.527  0.957  0.942  0.444  0.444  0.96  0.96 

ECU  0.784  0.558  0.961  0.947  0.454  0.454  0.877  0.877 

EGY  0.537  0.537  0.89  0.879  0.472  0.472  0.962  0.962 

ERI  0.48  0.48  0.778  0.76  0.412  0.412  0.945  0.945 

ESP  1  0.943  1  0.998  0.386  0.386  0.977  0.977 

EST  0.536  0.536  0.943  0.93  0.461  0.461  0.947  0.947 

ETH  0.476  0.476  0.749  0.749  0.408  0.408  0.691  0.691 

FIN  0.917  0.752  0.982  0.98  0.384  0.382  0.994  0.994 

FJI  0.512  0.512  0.814  0.8  0.927  0.927  1  1 

FRA  0.768  0.73  0.99  0.99  0.318  0.318  0.996  0.996 

GAB  0.598  0.598  0.794  0.791  0.521  0.521  0.766  0.764 

GBR  0.853  0.665  0.973  0.973  0.344  0.344  0.957  0.957 

GEO  0.526  0.526  0.915  0.902  0.46  0.46  0.929  0.929 

GHA  0.485  0.485  0.791  0.773  0.419  0.419  0.934  0.934 

GIN  0.478  0.478  0.732  0.715  0.409  0.409  0.597  0.597 

GMB  0.476  0.476  0.805  0.805  0.408  0.408  0.98  0.98 

GNB  0.48  0.48  0.704  0.687  0.412  0.412  0.861  0.861 

GRC  0.981  0.798  0.982  0.981  0.85  0.85  1  1 

GRD  0.534  0.534  0.892  0.88  0.466  0.466  0.973  0.973 

GTM  0.513  0.513  0.894  0.879  0.446  0.446  0.869  0.869 

GUY  0.49  0.49  0.83  0.812  0.425  0.425  0.973  0.973 

HND  0.483  0.483  0.897  0.877  0.415  0.415  0.98  0.98 

HRV  0.46  0.46  0.932  0.931  0.399  0.399  0.967  0.967 

HTI  0.481  0.481  0.765  0.747  0.413  0.413  0.638  0.638 

HUN  0.515  0.515  0.933  0.917  0.953  0.953  1  1 

IDN  0.548  0.548  0.878  0.868  0.484  0.484  0.816  0.814 

IND  0.507  0.507  0.832  0.817  0.44  0.44  0.825  0.825 

IRN  0.574  0.574  0.931  0.924  0.854  0.703  1  0.998 

ISL  0.878  0.869  0.999  0.995  0.37  0.37  0.937  0.937 

ITA  0.899  0.879  0.998  0.994  0.373  0.373  0.965  0.965 

JAM  0.513  0.513  0.936  0.92  0.444  0.444  0.935  0.935 

JOR  0.478  0.478  0.938  0.916  0.422  0.414  0.991  0.991 

KAZ  0.632  0.632  0.86  0.856  0.576  0.576  0.993  0.991 

KEN  0.485  0.485  0.784  0.766  0.416  0.416  0.918  0.918 

KGZ  0.481  0.481  0.861  0.842  0.413  0.413  0.971  0.971 

KHM  0.491  0.491  0.829  0.812  0.423  0.423  0.89  0.89 

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Table A.4 (continued) 

  Disability Adjusted Life Expectancy  Immunization, DTP 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

KNA  0.59  0.59  0.973  0.971 

KOR  1  0.99  1  0.999  0.561  0.561  0.987  0.985 

LAO  0.505  0.505  0.802  0.787  0.439  0.439  0.811  0.811 

LBN  0.803  0.757  0.988  0.976  0.485  0.485  0.821  0.818 

LCA  0.514  0.514  0.942  0.926  0.444  0.444  0.99  0.99 

LKA  0.541  0.541  0.948  0.937  0.802  0.66  0.997  0.997 

LSO  0.467  0.467  0.571  0.571  0.396  0.396  0.944  0.944 

LTU  0.536  0.536  0.915  0.902  0.473  0.473  0.948  0.948 

LUX  0.962  0.888  0.992  0.991  0.897  0.897  1  1 

LVA  0.554  0.554  0.91  0.901  0.498  0.498  0.941  0.938 

MAR  0.515  0.515  0.922  0.907  0.933  0.933  1  1 

MDA  0.476  0.476  0.862  0.862  0.409  0.409  0.905  0.905 

MDG  0.478  0.478  0.77  0.752  0.41  0.41  0.73  0.73 

MEX  0.56  0.56  0.95  0.941  0.49  0.49  0.931  0.928 

MKD  0.504  0.504  0.925  0.908  0.441  0.441  0.961  0.961 

MLI  0.48  0.48  0.744  0.726  0.413  0.413  0.698  0.698 

MNG  0.525  0.525  0.828  0.815  0.463  0.463  0.988  0.988 

MOZ  0.475  0.475  0.688  0.688  0.407  0.407  0.775  0.775 

MRT  0.495  0.495  0.853  0.836  0.427  0.427  0.75  0.75 

MUS  0.592  0.592  0.92  0.915  0.528  0.528  0.993  0.991 

MWI  0.47  0.47  0.663  0.663  0.402  0.402  0.934  0.934 

MYS  0.655  0.655  0.94  0.938  0.596  0.596  0.983  0.981 

NAM  0.494  0.494  0.733  0.718  0.423  0.423  0.867  0.867 

NER  0.474  0.474  0.72  0.72  0.407  0.407  0.703  0.703 

NGA  0.511  0.511  0.766  0.753  0.446  0.446  0.506  0.506 

NIC  0.718  0.571  0.971  0.949  0.415  0.415  0.99  0.99 

NLD  0.711  0.609  0.981  0.981  0.28  0.28  0.975  0.975 

NOR  0.759  0.697  0.987  0.987  0.305  0.305  0.949  0.949 

NPL  0.481  0.481  0.859  0.839  0.414  0.414  0.906  0.906 

NZL  0.782  0.671  0.981  0.981  0.305  0.305  0.938  0.938 

OMN  1  1  1  1  1  1  1  1 

PAK  0.507  0.507  0.823  0.808  0.439  0.439  0.743  0.743 

PAN  0.746  0.638  0.978  0.959  0.43  0.43  0.843  0.843 

PER  0.785  0.709  0.983  0.969  0.462  0.462  0.921  0.921 

PHL  0.515  0.515  0.865  0.85  0.448  0.448  0.804  0.804 

PNG  0.478  0.478  0.741  0.724  0.411  0.411  0.737  0.737 

POL  0.788  0.546  0.958  0.945  0.786  0.647  0.997  0.997 

PRY  0.501  0.501  0.929  0.911  0.429  0.429  0.889  0.889 

ROM  0.528  0.528  0.926  0.912  0.462  0.462  0.929  0.929 

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Table A.4 (continued) 

  Disability Adjusted Life Expectancy  Immunization, DTP 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

RUS  0.577  0.577  0.861  0.855  0.515  0.515  0.984  0.982 

RWA  0.477  0.477  0.778  0.778  0.41  0.41  0.986  0.986 

SAU  0.99  0.99  0.988  0.988  1  1  1  1 

SDN  0.494  0.494  0.835  0.818  0.426  0.426  0.918  0.918 

SEN  0.482  0.482  0.803  0.785  0.415  0.415  0.906  0.906 

SLB  0.472  0.472  0.758  0.757  0.405  0.405  0.952  0.952 

SLE  0.478  0.478  0.701  0.684  0.411  0.411  0.882  0.882 

SLV  0.493  0.493  0.932  0.912  0.425  0.425  0.921  0.921 

SVK  0.497  0.497  0.947  0.928  0.442  0.433  0.991  0.991 

SVN  0.678  0.665  0.969  0.968  0.392  0.392  0.965  0.965 

SWE  0.742  0.696  0.989  0.989  0.284  0.284  0.99  0.99 

SWZ  0.473  0.473  0.613  0.613  0.403  0.403  0.937  0.937 

TCD  0.484  0.484  0.712  0.696  0.416  0.416  0.372  0.372 

TGO  0.478  0.478  0.748  0.73  0.41  0.41  0.85  0.85 

THA  0.546  0.546  0.952  0.941  1  1  1  1 

TJK  0.486  0.486  0.874  0.854  0.418  0.418  0.96  0.96 

TKM  0.57  0.57  0.851  0.844  0.512  0.512  0.986  0.983 

TON  0.486  0.486  0.876  0.856  0.422  0.422  0.815  0.815 

TTO  0.697  0.697  0.946  0.912  0.631  0.631  0.93  0.928 

TUN  0.759  0.542  0.961  0.944  0.441  0.441  0.99  0.99 

TUR  0.799  0.686  0.978  0.966  0.475  0.475  0.978  0.978 

TZA  0.482  0.482  0.752  0.735  0.415  0.415  0.929  0.929 

UGA  0.479  0.479  0.725  0.708  0.412  0.412  0.798  0.798 

UKR  0.496  0.496  0.875  0.857  0.43  0.43  0.535  0.535 

URY  0.722  0.498  0.958  0.937  0.422  0.422  0.958  0.958 

USA  0.562  0.494  0.952  0.952  0.316  0.316  0.958  0.958 

UZB  0.495  0.495  0.859  0.841  0.89  0.74  0.999  0.999 

VCT  0.506  0.506  0.893  0.877  0.436  0.436  0.986  0.986 

VEN  0.605  0.605  0.94  0.937  0.542  0.542  0.822  0.82 

VNM  0.494  0.494  0.917  0.898  0.425  0.425  0.912  0.912 

VUT  0.481  0.481  0.789  0.771  0.413  0.413  0.652  0.652 

WSM  0.481  0.481  0.895  0.874  0.411  0.411  0.629  0.629 

YEM  0.497  0.497  0.827  0.81  0.43  0.43  0.726  0.726 

ZAF  0.514  0.514  0.71  0.698  0.445  0.445  0.732  0.732 

ZAR  0.475  0.475  0.717  0.717  0.407  0.407  0.745  0.745 

ZMB  0.489  0.489  0.659  0.645  0.422  0.422  0.853  0.853 

ZWE  0.481  0.481  0.656  0.641  0.412  0.412  0.899  0.899 

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Table A.5 Efficiency Score for Selected Health Indicators (Single Inputs – Output)

Maternal Survival Rate  

Infant Survival Rate  

Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

Country  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

AGO  0.439  0.439  0.995  0.995  0.439  0.439  0.935  0.935 

ALB  0.462  0.462  1.000  1.000  0.462  0.462  0.989  0.988 

ARG  0.495  0.495  1.000  1.000  0.509  0.499  0.991  0.990 

ARM  0.454  0.454  1.000  1.000  0.454  0.454  0.988  0.988 

ATG  0.826  0.602  0.996  0.996 

AUS  0.882  0.416  1.000  1.000  0.697  0.646  0.999  0.998 

AUT  0.659  0.625  1.000  1.000  0.520  0.495  0.999  0.999 

AZE  0.565  0.565  1.000  1.000  0.565  0.565  0.971  0.971 

BDI  0.404  0.404  0.993  0.993  0.404  0.404  0.946  0.945 

BEN  0.413  0.413  0.996  0.996  0.413  0.413  0.934  0.933 

BFA  0.409  0.409  0.996  0.996  0.409  0.409  0.941  0.941 

BGD  0.424  0.424  0.998  0.998  0.424  0.424  0.967  0.967 

BGR  0.776  0.463  1.000  1.000  0.541  0.512  0.994  0.994 

BHR  0.856  0.856  1.000  1.000  1.000  1.000  1.000  1.000 

BHS  0.523  0.523  0.999  0.999  0.537  0.534  0.992  0.992 

BLR  1.000  0.472  1.000  1.000  0.792  0.733  0.999  0.999 

BLZ  0.433  0.433  1.000  1.000  0.433  0.433  0.988  0.987 

BOL  0.423  0.423  0.998  0.998  0.423  0.423  0.968  0.968 

BRA  0.465  0.465  1.000  1.000  0.465  0.465  0.986  0.986 

BRB  0.448  0.448  1.000  1.000  0.461  0.449  0.990  0.990 

BWA  0.467  0.467  0.999  0.999  0.467  0.467  0.964  0.964 

CAF  0.407  0.407  0.991  0.991  0.407  0.407  0.905  0.904 

CAN  0.577  0.344  1.000  1.000  0.576  0.491  0.997  0.997 

CHE  0.723  0.341  1.000  1.000  0.571  0.524  0.998  0.998 

CHL  0.510  0.510  1.000  1.000  0.595  0.585  0.995  0.995 

CHN  0.467  0.467  1.000  1.000  0.480  0.471  0.991  0.991 

CIV  0.421  0.421  0.994  0.994  0.421  0.421  0.928  0.928 

CMR  0.423  0.423  0.994  0.994  0.423  0.423  0.939  0.939 

COG  0.431  0.431  0.996  0.996  0.431  0.431  0.961  0.960 

COL  0.425  0.425  0.999  0.999  0.425  0.425  0.987  0.987 

COM  0.411  0.411  0.997  0.997  0.411  0.411  0.941  0.941 

CPV  0.429  0.429  1.000  1.000  0.429  0.429  0.981  0.981 

CRI  0.394  0.394  1.000  1.000  0.460  0.429  0.994  0.993 

CYP  1.000  0.596  1.000  1.000  1.000  1.000  1.000  1.000 

CZE  0.867  0.409  1.000  1.000  0.949  0.700  1.000  0.999 

DEU  0.661  0.547  1.000  1.000  0.522  0.494  0.998  0.998 

DJI  0.406  0.406  0.998  0.998  0.406  0.406  0.943  0.942 

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Table A.5 (continued) 

Maternal Survival Rate  Infant Survival Rate 

Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

Country  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

DMA  0.442  0.442  0.978  0.978 

DNK  0.590  0.489  1.000  1.000  0.466  0.439  0.998  0.998 

DOM  0.477  0.477  0.999  0.999  0.477  0.477  0.975  0.975 

DZA  0.444  0.444  0.999  0.999  0.444  0.444  0.980  0.979 

ECU  0.454  0.454  0.999  0.999  0.454  0.454  0.983  0.982 

EGY  0.472  0.472  1.000  1.000  0.472  0.472  0.980  0.980 

ERI  0.412  0.412  0.995  0.995  0.412  0.412  0.965  0.965 

ESP  0.819  0.386  1.000  1.000  0.647  0.631  0.999  0.999 

EST  0.774  0.462  1.000  1.000  0.774  0.745  0.999  0.999 

ETH  0.408  0.408  0.996  0.997  0.408  0.408  0.953  0.953 

FIN  0.799  0.375  1.000  1.000  0.869  0.801  1.000  1.000 

FJI  0.445  0.445  1.000  1.000  0.445  0.445  0.983  0.982 

FRA  0.520  0.466  1.000  1.000  0.519  0.491  0.998  0.998 

GAB  0.521  0.521  0.997  0.997  0.521  0.521  0.963  0.963 

GBR  0.578  0.345  1.000  1.000  0.577  0.518  0.998  0.998 

GEO  0.460  0.460  1.000  1.000  0.460  0.460  0.990  0.989 

GHA  0.418  0.418  0.997  0.997  0.419  0.419  0.955  0.955 

GIN  0.409  0.409  0.993  0.993  0.409  0.409  0.936  0.936 

GMB  0.408  0.408  0.993  0.993  0.408  0.408  0.956  0.956 

GNB  0.412  0.412  0.995  0.995  0.412  0.412  0.935  0.935 

GRC  0.871  0.408  1.000  1.000  0.684  0.657  0.999  0.999 

GRD  0.466  0.466  1.000  1.000  0.466  0.466  0.989  0.989 

GTM  0.446  0.446  0.999  0.999  0.446  0.446  0.975  0.975 

GUY  0.425  0.425  0.998  0.998  0.425  0.425  0.973  0.973 

HND  0.414  0.414  0.999  0.999  0.415  0.415  0.984  0.984 

HRV  0.669  0.399  1.000  1.000  0.669  0.585  0.998  0.998 

HTI  0.413  0.413  0.996  0.996  0.413  0.413  0.942  0.942 

HUN  0.457  0.457  1.000  1.000  0.767  0.646  0.998  0.997 

IDN  0.484  0.484  0.999  0.999  0.484  0.484  0.977  0.977 

IND  0.440  0.440  0.998  0.998  0.440  0.440  0.961  0.960 

IRN  0.509  0.509  1.000  1.000  0.509  0.509  0.987  0.987 

ISL  0.791  0.371  1.000  1.000  1.000  1.000  1.000  1.000 

ITA  0.791  0.373  1.000  1.000  0.625  0.600  0.999  0.999 

JAM  0.444  0.444  0.999  0.999  0.444  0.444  0.988  0.987 

JOR  0.411  0.411  0.999  0.999  0.411  0.411  0.985  0.985 

KAZ  0.576  0.576  1.000  1.000  0.576  0.576  0.987  0.987 

KEN  0.416  0.416  0.995  0.995  0.416  0.416  0.962  0.962 

KGZ  0.413  0.413  0.999  0.999  0.413  0.413  0.979  0.979 

KHM  0.423  0.423  0.998  0.998  0.423  0.423  0.969  0.969 

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Table A.5 (continued) 

Maternal Survival Rate  Infant Survival Rate 

Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

Country  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

KNA  0.689  0.628  0.994  0.994 

KOR  0.941  0.561  1.000  1.000  0.941  0.896  0.999  0.999 

LAO  0.439  0.439  0.998  0.998  0.439  0.439  0.947  0.947 

LBN  0.485  0.485  1.000  1.000  0.566  0.539  0.994  0.994 

LCA  0.444  0.444  1.000  1.000  0.444  0.444  0.990  0.989 

LKA  0.478  0.478  1.000  1.000  0.558  0.507  0.993  0.993 

LSO  0.396  0.396  0.995  0.995  0.396  0.396  0.927  0.927 

LTU  0.794  0.473  1.000  1.000  0.793  0.697  0.998  0.998 

LUX  0.725  0.433  1.000  1.000  1.000  0.955  1.000  1.000 

LVA  0.498  0.498  1.000  1.000  0.835  0.659  0.997  0.997 

MAR  0.448  0.448  0.999  0.999  0.448  0.448  0.976  0.975 

MDA  0.408  0.408  1.000  1.000  0.409  0.409  0.988  0.988 

MDG  0.410  0.410  0.996  0.997  0.410  0.410  0.962  0.962 

MEX  0.490  0.490  1.000  1.000  0.490  0.490  0.989  0.988 

MKD  0.740  0.441  1.000  1.000  0.515  0.457  0.993  0.993 

MLI  0.413  0.413  0.994  0.994  0.413  0.413  0.927  0.927 

MNG  0.463  0.463  1.000  1.000  0.463  0.463  0.983  0.983 

MOZ  0.407  0.407  0.995  0.995  0.407  0.407  0.939  0.939 

MRT  0.426  0.426  0.994  0.994  0.427  0.427  0.943  0.942 

MUS  0.528  0.528  1.000  1.000  0.528  0.528  0.989  0.989 

MWI  0.402  0.402  0.994  0.994  0.402  0.402  0.952  0.952 

MYS  0.595  0.595  1.000  1.000  0.999  0.708  0.996  0.996 

NAM  0.423  0.423  0.997  0.997  0.423  0.423  0.964  0.964 

NER  0.407  0.407  0.994  0.995  0.407  0.407  0.944  0.944 

NGA  0.446  0.446  0.992  0.992  0.446  0.446  0.926  0.926 

NIC  0.415  0.415  0.999  0.999  0.415  0.415  0.983  0.983 

NLD  0.470  0.457  1.000  1.000  0.469  0.438  0.998  0.998 

NOR  0.648  0.576  1.000  1.000  0.709  0.591  0.999  0.999 

NPL  0.413  0.413  0.997  0.997  0.414  0.414  0.968  0.968 

NZL  0.513  0.344  1.000  1.000  0.512  0.430  0.997  0.997 

OMN  0.972  0.972  1.000  1.000  1.000  1.000  1.000  1.000 

PAK  0.438  0.438  0.998  0.998  0.439  0.439  0.932  0.932 

PAN  0.430  0.430  0.999  0.999  0.430  0.430  0.986  0.986 

PER  0.462  0.462  0.999  0.999  0.462  0.462  0.988  0.988 

PHL  0.448  0.448  0.999  0.999  0.448  0.448  0.979  0.978 

PNG  0.411  0.411  0.998  0.998  0.411  0.411  0.955  0.955 

POL  1.000  0.469  1.000  1.000  0.786  0.671  0.998  0.998 

PRY  0.429  0.429  0.999  0.999  0.429  0.429  0.983  0.983 

ROM  0.462  0.462  1.000  1.000  0.540  0.494  0.994  0.993 

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Table A.5 (continued) 

Maternal Survival Rate  Infant Survival Rate 

Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

Country  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

RUS  0.515  0.515  1.000  1.000  0.601  0.580  0.995  0.995 

RWA  0.410  0.410  0.997  0.997  0.410  0.410  0.964  0.964 

SAU  1.000  1.000  1.000  1.000  1.000  1.000  1.000  1.000 

SDN  0.426  0.426  0.997  0.997  0.426  0.426  0.953  0.953 

SEN  0.415  0.415  0.997  0.997  0.415  0.415  0.963  0.962 

SLB  0.404  0.404  0.999  0.999  0.405  0.405  0.979  0.979 

SLE  0.410  0.410  0.986  0.986  0.411  0.411  0.904  0.904 

SLV  0.425  0.425  0.999  0.999  0.425  0.425  0.987  0.987 

SVK  0.911  0.430  1.000  1.000  0.721  0.578  0.997  0.997 

SVN  0.658  0.392  1.000  1.000  0.910  0.818  1.000  1.000 

SWE  0.604  0.572  1.000  1.000  0.661  0.535  0.999  0.999 

SWZ  0.403  0.403  0.996  0.996  0.403  0.403  0.943  0.942 

TCD  0.415  0.415  0.991  0.991  0.416  0.416  0.920  0.920 

TGO  0.410  0.410  0.996  0.996  0.410  0.410  0.946  0.946 

THA  0.480  0.480  1.000  1.000  0.493  0.483  0.991  0.990 

TJK  0.417  0.417  1.000  1.000  0.418  0.418  0.960  0.960 

TKM  0.512  0.512  1.000  1.000  0.512  0.512  0.954  0.953 

TON  0.421  0.421  0.999  0.999  0.422  0.422  0.987  0.987 

TTO  0.630  0.630  0.999  0.999  0.631  0.631  0.988  0.985 

TUN  0.441  0.441  0.999  0.999  0.441  0.441  0.989  0.988 

TUR  0.475  0.475  1.000  1.000  0.475  0.475  0.988  0.988 

TZA  0.415  0.415  0.996  0.996  0.415  0.415  0.957  0.957 

UGA  0.411  0.411  0.997  0.997  0.412  0.412  0.955  0.955 

UKR  0.429  0.429  1.000  1.000  0.501  0.452  0.993  0.993 

URY  0.422  0.422  1.000  1.000  0.493  0.458  0.994  0.993 

USA  0.317  0.317  1.000  1.000  0.529  0.405  0.996  0.996 

UZB  0.427  0.427  1.000  1.000  0.427  0.427  0.974  0.974 

VCT  0.436  0.436  1.000  1.000  0.436  0.436  0.985  0.985 

VEN  0.542  0.542  0.999  0.999  0.542  0.542  0.988  0.988 

VNM  0.425  0.425  0.999  0.999  0.425  0.425  0.984  0.984 

VUT  0.413  0.413  0.999  0.999  0.413  0.413  0.978  0.978 

WSM  0.411  0.411  1.000  1.000  0.411  0.411  0.986  0.986 

YEM  0.430  0.430  0.959  0.958 

ZAF  0.445  0.445  0.999  0.999  0.445  0.445  0.965  0.965 

ZAR  0.406  0.406  0.993  0.993  0.407  0.407  0.922  0.922 

ZMB  0.422  0.422  0.998  0.998  0.422  0.422  0.952  0.951 

ZWE  0.412  0.412  0.996  0.996  0.412  0.412  0.951  0.951 

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Table A.6 Efficiency Score for Selected Health Indicators (Two Inputs – Single Output)

  Input (Health Expenditure‐ Adult Literacy Rate) 

  Disability Adjusted Life Expectancy  Immunization, DTP 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

dmu  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

AGO  0.924  0.780  0.824  0.814  0.931  0.765  0.704  0.704 

ALB  0.927  0.832  0.993  0.963  0.923  0.754  0.997  0.997 

ARG  0.914  0.783  0.956  0.953  0.791  0.642  0.941  0.941 

ARM  0.899  0.744  0.970  0.938  0.909  0.693  0.954  0.951 

AZE  0.899  0.833  0.916  0.905  0.909  0.843  0.900  0.899 

BDI  0.922  0.788  0.840  0.802  0.893  0.830  0.982  0.965 

BEN  1.000  0.926  1.000  0.974  1.000  0.921  1.000  0.892 

BFA  0.991  0.915  0.988  0.922  1.000  1.000  1.000  1.000 

BGD  1.000  0.957  1.000  0.983  1.000  1.000  1.000  1.000 

BGR  0.851  0.693  0.929  0.926  0.749  0.613  0.941  0.941 

BHR  0.948  0.862  0.984  0.969  0.959  0.871  1.000  0.998 

BLR  0.798  0.639  0.898  0.894  0.791  0.647  0.987  0.987 

BOL  0.873  0.703  0.909  0.907  0.796  0.665  0.957  0.957 

BRA  0.922  0.747  0.939  0.938  0.815  0.679  0.978  0.978 

CAF  0.970  0.882  0.768  0.726  0.987  0.865  0.488  0.464 

CHL  1.000  1.000  1.000  1.000  0.800  0.649  0.941  0.941 

CHN  0.915  0.758  0.976  0.943  0.969  0.969  1.000  1.000 

CIV  1.000  0.885  1.000  0.842  1.000  0.874  1.000  0.840 

CMR  0.936  0.768  0.782  0.765  0.947  0.743  0.853  0.853 

COG  0.914  0.732  0.815  0.782  0.918  0.695  0.828  0.828 

COL  0.859  0.823  0.971  0.963  0.685  0.574  0.906  0.906 

COM  0.947  0.862  0.968  0.948  0.957  0.847  0.881  0.865 

CPV  0.893  0.752  0.974  0.925  0.856  0.708  0.957  0.957 

CRI  1.000  0.983  1.000  0.998  0.548  0.489  0.906  0.906 

CYP  1.000  1.000  1.000  1.000  0.854  0.722  0.997  0.997 

DOM  0.992  0.811  0.976  0.951  0.947  0.696  0.865  0.863 

DZA  1.000  1.000  1.000  1.000 

ECU  1.000  0.898  1.000  0.975  0.841  0.651  0.877  0.877 

EGY  1.000  0.862  1.000  0.946  1.000  0.854  1.000  0.963 

ERI  0.904  0.771  0.843  0.836 

ESP  1.000  1.000  1.000  1.000  0.428  0.425  0.977  0.977 

EST  0.768  0.697  0.947  0.938  0.601  0.528  0.947  0.947 

ETH  0.987  0.868  0.987  0.923 

GAB  1.000  0.829  1.000  0.830  1.000  0.787  1.000  0.764 

GEO  0.900  0.732  0.958  0.928  0.910  0.694  0.932  0.930 

GHA  0.882  0.733  0.857  0.835  0.898  0.763  0.934  0.934 

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Table A.6 (continued) 

  Input (Health Expenditure‐ Adult Literacy Rate) 

  Disability Adjusted Life Expectancy  Immunization, DTP 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

dmu  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

GIN  1.000  0.934  1.000  0.927  1.000  0.918  1.000  0.710 

GMB  1.000  0.916  1.000  0.978  1.000  1.000  1.000  1.000 

GNB  0.973  0.852  0.825  0.821  1.000  0.884  1.000  0.878 

GRC  1.000  0.967  1.000  0.993  0.672  0.672  1.000  1.000 

GTM  0.976  0.799  0.969  0.931  0.934  0.724  0.869  0.869 

GUY  0.838  0.663  0.863  0.847  0.826  0.703  0.973  0.973 

HND  0.866  0.730  0.964  0.915  0.824  0.706  0.980  0.980 

HRV  0.745  0.739  0.951  0.943  0.483  0.479  0.967  0.967 

HTI  0.964  0.840  0.896  0.879 

IDN  0.958  0.769  0.919  0.898  0.965  0.755  0.817  0.815 

IND  1.000  0.814  1.000  0.895  1.000  0.782  1.000  0.826 

IRN  1.000  0.847  1.000  0.962  1.000  0.849  1.000  0.997 

ITA  0.991  0.982  0.998  0.998  0.424  0.408  0.965  0.965 

JOR  0.839  0.731  0.950  0.940  0.673  0.637  0.991  0.991 

KAZ  0.899  0.755  0.895  0.875  0.909  0.784  0.994  0.992 

KEN  0.904  0.731  0.850  0.821  0.890  0.722  0.918  0.918 

KGZ  0.850  0.642  0.866  0.865  0.850  0.656  0.971  0.971 

KHM  0.945  0.747  0.899  0.869  0.942  0.750  0.890  0.890 

LAO  0.990  0.848  0.974  0.887  1.000  0.836  1.000  0.819 

LBN  1.000  1.000  1.000  1.000  0.878  0.667  0.818  0.818 

LKA  0.987  0.872  0.992  0.969  1.000  0.834  1.000  0.998 

LSO  0.784  0.667  0.611  0.608  0.777  0.685  0.944  0.944 

LTU  0.671  0.629  0.919  0.911  0.643  0.556  0.948  0.948 

LVA  0.788  0.660  0.915  0.911  0.751  0.620  0.938  0.938 

MAR  1.000  1.000  1.000  1.000  1.000  1.000  1.000  1.000 

MDA  0.788  0.632  0.887  0.885  0.743  0.594  0.905  0.905 

MDG  0.889  0.750  0.834  0.819  0.863  0.722  0.730  0.730 

MEX  0.959  0.832  0.966  0.961  0.864  0.677  0.928  0.928 

MLI  0.995  0.915  0.956  0.931  1.000  0.899  1.000  0.794 

MNG  0.912  0.684  0.866  0.836  0.923  0.721  0.991  0.988 

MOZ  0.933  0.813  0.826  0.803  0.931  0.788  0.800  0.785 

MRT  1.000  0.991  1.000  0.996 

MUS  0.979  0.804  0.962  0.941  0.990  0.803  0.994  0.991 

MWI  0.843  0.745  0.736  0.734  0.867  0.787  0.953  0.935 

MYS  0.963  0.849  0.978  0.961  0.974  0.838  0.984  0.982 

NAM  0.779  0.647  0.763  0.753  0.736  0.595  0.867  0.867 

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Table A.6 (continued) 

Health Expenditure‐ Adult Literacy Rate             

  Disability Adjusted Life Expectancy  Immunization, DTP 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

NER  1.000  1.000  1.000  1.000  1.000  1.000  1.000  1.000 

NGA  1.000  0.893  1.000  0.881 

NPL  0.945  0.848  0.974  0.940  0.927  0.815  0.936  0.910 

OMN  1.000  1.000  1.000  1.000  1.000  1.000  1.000  1.000 

PAK  1.000  0.867  1.000  0.925  1.000  0.852  1.000  0.754 

PAN  0.961  0.888  0.990  0.978  0.616  0.503  0.843  0.843 

PER  1.000  0.978  1.000  0.997  0.874  0.677  0.921  0.921 

PHL  0.935  0.710  0.904  0.877  0.940  0.681  0.806  0.804 

PRY  0.888  0.741  0.940  0.936  0.781  0.615  0.889  0.889 

ROM  0.848  0.672  0.931  0.925  0.697  0.576  0.929  0.929 

RUS  0.777  0.607  0.865  0.863  0.790  0.640  0.981  0.981 

RWA  0.881  0.749  0.864  0.850  0.957  0.841  0.986  0.986 

SAU  0.949  0.873  0.988  0.974  0.960  0.864  0.994  0.993 

SDN  0.985  0.860  0.978  0.939 

SEN  0.976  0.842  0.941  0.932  0.977  0.896  0.936  0.920 

SLE  0.978  0.910  0.901  0.870  1.000  1.000  1.000  1.000 

SLV  0.969  0.794  0.970  0.952  0.794  0.655  0.921  0.921 

SWZ  0.707  0.605  0.653  0.642  0.692  0.615  0.937  0.937 

TCD  1.000  0.976  1.000  0.927  1.000  0.959  1.000  0.474 

TGO  0.885  0.783  0.848  0.819  0.925  0.772  0.878  0.853 

THA  0.950  0.837  0.968  0.963  0.940  0.940  1.000  1.000 

TON  0.824  0.630  0.880  0.878  0.783  0.602  0.815  0.815 

TUN  1.000  0.977  1.000  0.995  0.807  0.759  0.990  0.990 

TUR  0.974  0.910  0.990  0.983  0.715  0.628  0.978  0.978 

TZA  0.885  0.728  0.816  0.789  0.893  0.750  0.929  0.929 

UGA  0.887  0.739  0.786  0.765  0.870  0.709  0.798  0.798 

UKR  0.800  0.620  0.879  0.877  0.747  0.585  0.535  0.535 

URY  0.802  0.756  0.963  0.952  0.580  0.528  0.958  0.958 

UZB  0.889  0.657  0.873  0.864  0.900  0.728  0.999  0.999 

VEN  0.935  0.825  0.983  0.962  0.948  0.768  0.823  0.821 

VNM  0.901  0.737  0.932  0.926  0.811  0.652  0.912  0.912 

WSM  0.815  0.648  0.899  0.897  0.742  0.568  0.629  0.629 

ZAF  0.788  0.629  0.718  0.715  0.760  0.589  0.732  0.732 

ZAR  0.883  0.739  0.796  0.776  0.861  0.693  0.745  0.745 

ZMB  0.902  0.745  0.714  0.695  0.887  0.678  0.853  0.853 

ZWE  0.885  0.696  0.705  0.670  0.855  0.678  0.899  0.899 

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Table A.7 Efficiency Score for Selected Infrastructure Indicators (Single Inputs – Output)

  Quality of the Overall Infrastructure  Quality of Electricity Supply 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

dmu  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

AGO  0.100  0.100  0.321  0.321  0.100  0.100  0.233  0.233 

ALB  0.143  0.143  0.522  0.522  0.143  0.143  0.555  0.555 

ARE  0.259  0.254  0.936  0.936  0.259  0.243  0.956  0.956 

ARG  0.230  0.230  0.507  0.484  0.230  0.230  0.502  0.491 

ARM  0.258  0.258  0.614  0.594  0.258  0.258  0.700  0.687 

AUS  0.334  0.193  0.772  0.772  0.364  0.216  0.905  0.905 

AUT  1.000  0.614  1.000  0.948  1.000  0.835  1.000  0.987 

AZE  0.087  0.087  0.662  0.662  0.087  0.087  0.650  0.650 

BDI  0.153  0.153  0.369  0.369  0.153  0.153  0.329  0.329 

BEL  0.877  0.699  0.922  0.911  0.877  0.870  0.999  0.992 

BEN  0.168  0.168  0.427  0.427  0.168  0.168  0.371  0.371 

BFA  0.150  0.150  0.392  0.392  0.150  0.150  0.357  0.357 

BGD  0.177  0.177  0.398  0.398  0.177  0.177  0.290  0.290 

BGR  0.165  0.165  0.471  0.471  0.165  0.165  0.573  0.573 

BHR  0.383  0.258  0.824  0.824  0.139  0.139  0.848  0.848 

BIH  0.151  0.151  0.361  0.361  0.151  0.151  0.783  0.783 

BLZ  0.163  0.163  0.530  0.530  0.163  0.163  0.603  0.603 

BOL  0.104  0.104  0.448  0.448  0.104  0.104  0.582  0.582 

BRA  0.664  0.679  0.620  0.664  0.804  0.779 

BRB  0.499  0.369  0.848  0.848  0.499  0.325  0.913  0.913 

BTN  0.098  0.098  0.676  0.676  0.098  0.098  0.863  0.863 

BWA  0.102  0.102  0.650  0.650  0.102  0.102  0.546  0.546 

CAN  0.439  0.361  0.878  0.878  0.656  0.440  0.965  0.965 

CHE  1.000  1.000  1.000  1.000  1.000  1.000  1.000  1.000 

CHL  1.000  0.592  1.000  0.851  0.395  0.395  0.939  0.857 

CIV  0.228  0.228  0.612  0.584  0.228  0.228  0.600  0.587 

CMR  0.210  0.210  0.458  0.432  0.210  0.210  0.413  0.400 

COL  0.133  0.133  0.497  0.497  0.133  0.133  0.747  0.747 

CPV  0.109  0.109  0.542  0.542  0.109  0.109  0.324  0.324 

CRI  0.242  0.242  0.533  0.512  0.242  0.242  0.847  0.831 

CZE  0.411  0.195  0.737  0.737  0.448  0.361  0.936  0.936 

DEU  1.000  1.000  1.000  1.000  1.000  1.000  1.000  1.000 

DOM  0.217  0.217  0.554  0.525  0.217  0.217  0.295  0.287 

DZA  0.084  0.084  0.516  0.516  0.084  0.084  0.647  0.647 

ECU  0.098  0.098  0.531  0.531  0.098  0.098  0.556  0.556 

EGY  0.377  0.377  0.716  0.599  0.377  0.377  0.741  0.672 

EST  0.360  0.210  0.773  0.773  0.142  0.142  0.814  0.814 

ETH  0.094  0.094  0.481  0.481  0.094  0.094  0.472  0.472 

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Table A.7 (continued) 

  Quality of the Overall Infrastructure  Quality of Electricity Supply 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

dmu  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

FIN  0.802  0.584  0.963  0.963  0.802  0.753  0.995  0.995 

FRA  0.795  0.545  0.958  0.958  0.791  0.64  0.984  0.984 

GAB  0.121  0.121  0.459  0.459  0.121  0.121  0.354  0.354 

GBR  0.669  0.42  0.856  0.823  1  0.742  1  0.982 

GEO  0.136  0.136  0.619  0.619  0.136  0.136  0.723  0.723 

GHA  0.162  0.162  0.536  0.536  0.162  0.162  0.438  0.438 

GIN  0.57  0.442  0.388  0.57  0.228  0.218 

GMB  0.156  0.156  0.638  0.638  0.156  0.156  0.59  0.59 

GRC  0.41  0.41  0.939  0.741  0.41  0.41  0.858  0.788 

GTM  0.602  0.9  0.801  0.602  0.862  0.828 

GUY  0.104  0.104  0.527  0.527  0.104  0.104  0.421  0.421 

HND  0.291  0.291  0.571  0.559  0.291  0.291  0.592  0.585 

HRV  0.452  0.182  0.713  0.713  0.179  0.179  0.81  0.81 

HTI  0.109  0.109  0.306  0.306  0.109  0.109  0.252  0.252 

IDN  0.332  0.332  0.563  0.559  0.332  0.332  0.6  0.598 

IND  0.136  0.136  0.535  0.535  0.136  0.136  0.481  0.481 

IRL  0.235  0.235  0.723  0.692  0.648  0.455  0.949  0.929 

IRN  0.28  0.28  0.642  0.627  0.28  0.28  0.765  0.754 

ISL  0.559  0.545  0.934  0.934  0.973  0.959  0.999  0.999 

ISR  1  1  1  1  1  1 

ITA  0.26  0.26  0.639  0.619  0.26  0.26  0.861  0.845 

JOR  0.434  0.216  0.745  0.745  0.172  0.172  0.836  0.836 

JPN  0.367  0.32  0.896  0.896  0.367  0.332  0.951  0.951 

KAZ  0.162  0.162  0.596  0.596  0.162  0.162  0.648  0.648 

KEN  0.187  0.187  0.556  0.556  0.187  0.187  0.535  0.535 

KHM  0.135  0.135  0.536  0.536  0.135  0.135  0.445  0.445 

KOR  0.404  0.307  0.855  0.855  0.404  0.199  0.889  0.889 

KWT  0.15  0.15  0.687  0.687  0.15  0.15  0.735  0.735 

LKA  0.18  0.18  0.669  0.669  0.18  0.18  0.702  0.702 

LSO  0.1  0.1  0.466  0.466  0.1  0.1  0.532  0.532 

LTU  0.448  0.204  0.731  0.731  0.177  0.177  0.816  0.816 

LUX  0.418  0.357  0.889  0.889  0.418  0.361  0.945  0.945 

LVA  0.197  0.197  0.676  0.676  0.197  0.197  0.778  0.778 

MAR  0.198  0.198  0.629  0.629  0.198  0.198  0.767  0.767 

MDA  0.223  0.223  0.541  0.515  0.223  0.223  0.648  0.632 

MDG  0.294  0.294  0.461  0.452  0.294  0.294  0.342  0.338 

MEX  0.169  0.169  0.596  0.596  0.169  0.169  0.636  0.636 

MLI  0.161  0.161  0.493  0.493  0.161  0.161  0.501  0.501 

MMR  0.14  0.14  0.342  0.342  0.14  0.14  0.418  0.418 

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Table A.7 (continued) 

  Quality of the Overall Infrastructure  Quality of Electricity Supply 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

MNE  0.145  0.145  0.489  0.489  0.145  0.145  0.572  0.572 

MOZ  0.103  0.103  0.418  0.418  0.103  0.103  0.489  0.489 

MUS  0.155  0.155  0.69  0.69  0.155  0.155  0.772  0.772 

MWI  0.203  0.203  0.458  0.458  0.203  0.203  0.363  0.363 

MYS  0.274  0.192  0.834  0.834  0.099  0.099  0.855  0.855 

NAM  0.324  0.189  0.774  0.774  0.128  0.128  0.795  0.795 

NGA  0.254  0.254  0.423  0.409  0.254  0.254  0.237  0.232 

NIC  0.175  0.175  0.45  0.45  0.175  0.175  0.466  0.466 

NLD  0.457  0.407  0.903  0.903  0.794  0.706  0.991  0.991 

NPL  0.53  0.527  0.453  0.53  0.271  0.257 

NZL  0.317  0.132  0.717  0.717  0.125  0.125  0.834  0.834 

OMN  0.213  0.136  0.812  0.812  0.213  0.116  0.898  0.898 

PAK  0.344  0.344  0.534  0.531  0.344  0.344  0.348  0.347 

PAN  0.137  0.137  0.688  0.688  0.137  0.137  0.764  0.764 

PER  0.165  0.165  0.477  0.477  0.165  0.165  0.708  0.708 

PHL  0.403  0.403  0.692  0.543  0.403  0.403  0.664  0.608 

POL  0.158  0.158  0.518  0.518  0.158  0.158  0.782  0.782 

PRT  0.656  0.53  0.926  0.888  0.656  0.424  0.94  0.922 

PRY  0.217  0.217  0.373  0.354  0.217  0.217  0.459  0.447 

ROM  0.137  0.137  0.424  0.424  0.137  0.137  0.633  0.633 

RUS  0.205  0.205  0.539  0.539  0.205  0.205  0.667  0.667 

RWA  0.113  0.113  0.676  0.676  0.113  0.113  0.604  0.604 

SAU  0.247  0.137  0.78  0.78  0.247  0.131  0.895  0.895 

SEN  0.16  0.16  0.524  0.524  0.16  0.16  0.352  0.352 

SGP  0.719  0.607  0.979  0.979  0.719  0.619  0.989  0.989 

SLE  0.197  0.197  0.425  0.425  0.197  0.197  0.324  0.324 

SLV  0.622  0.955  0.858  0.622  0.83  0.8 

SRB  0.286  0.286  0.469  0.459  0.286  0.286  0.711  0.701 

SUR  0.121  0.121  0.623  0.623  0.121  0.121  0.552  0.552 

SVK  0.194  0.194  0.62  0.62  0.536  0.312  0.903  0.903 

SWZ  0.163  0.163  0.626  0.626  0.163  0.163  0.58  0.58 

SYC  0.14  0.14  0.699  0.699  0.14  0.14  0.73  0.73 

TCD  0.127  0.127  0.337  0.337  0.127  0.127  0.22  0.22 

THA  0.142  0.142  0.696  0.696  0.142  0.142  0.8  0.8 

TJK  0.108  0.108  0.518  0.518  0.108  0.108  0.344  0.344 

TTO  0.096  0.096  0.651  0.651  0.096  0.096  0.781  0.781 

TUN  0.154  0.154  0.698  0.698  0.154  0.154  0.812  0.812 

TUR  0.149  0.149  0.703  0.703  0.149  0.149  0.667  0.667 

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 Table A.7 (continued) 

  Quality of the Overall Infrastructure  Quality of Electricity Supply 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

dmu  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

TZA  0.186  0.186  0.441  0.441  0.186  0.186  0.345  0.345 

UGA  0.152  0.152  0.482  0.482  0.152  0.152  0.364  0.364 

UKR  0.504  0.817  0.69  0.504  0.763  0.718 

URY  0.173  0.173  0.597  0.597  0.173  0.173  0.841  0.841 

USA  0.449  0.361  0.872  0.872  0.449  0.327  0.925  0.925 

VEN  0.093  0.093  0.411  0.411  0.093  0.093  0.364  0.364 

VNM  0.12  0.12  0.465  0.465  0.12  0.12  0.53  0.53 

YEM  0.398  0.398  0.575  0.449  0.398  0.398  0.248  0.226 

ZAF  0.284  0.284  0.718  0.702  0.284  0.284  0.552  0.544 

ZMB  0.346  0.346  0.516  0.514  0.346  0.346  0.516  0.515 

ZWE  0.751  0.665  0.626  0.751  0.321  0.314 

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Table A.8 Efficiency Score for Selected Infrastructure Indicators (Two Inputs – Single Output)

Input (Public ‐ Private Capital Expenditure) 

  Quality of overall infrastructure  Quality of Electricity Supply 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

dmu  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

AGO  1  1  1  1  1  1  1  1 

ALB  0.625  0.385  0.522  0.522  0.625  0.425  0.555  0.555 

ARE  1  1  1  1  1  0.954  1  0.978 

ARG  0.964  0.519  0.593  0.525  0.964  0.574  0.502  0.496 

ARM  0.684  0.494  0.614  0.594  0.684  0.559  0.7  0.687 

AUS  0.729  0.601  0.772  0.772  0.729  0.652  0.905  0.905 

AUT  1  0.897  1  0.955  1  0.87  1  0.987 

AZE  1  0.828  1  0.9  1  0.787  1  0.849 

BDI  0.822  0.499  0.904  0.501  1  0.553  1  0.426 

BEL  0.925  0.846  0.922  0.911  0.925  0.911  0.999  0.992 

BEN  0.714  0.341  0.427  0.427  0.714  0.356  0.371  0.371 

BFA  0.543  0.385  0.441  0.419  0.689  0.424  0.367  0.358 

BGD  0.446  0.305  0.398  0.398  0.66  0.291  0.29  0.29 

BGR  0.723  0.39  0.471  0.471  0.723  0.489  0.573  0.573 

BHR  0.766  0.651  0.824  0.824  0.738  0.626  0.848  0.848 

BIH  0.513  0.339  0.387  0.379  0.832  0.706  0.784  0.783 

BLZ  0.714  0.5  0.568  0.553  0.895  0.58  0.603  0.603 

BOL  0.894  0.484  0.715  0.552  0.894  0.643  0.999  0.675 

BRA  0.995  0.799  0.679  0.62  0.995  0.808  0.804  0.779 

BRB  1  1  1  1  1  1  1  1 

BTN  0.528  0.379  0.676  0.676  0.528  0.453  0.863  0.863 

BWA  0.608  0.458  0.65  0.65  0.503  0.404  0.546  0.546 

CAN  0.833  0.765  0.912  0.884  0.801  0.781  0.967  0.966 

CHE  1  1  1  1  1  1  1  1 

CHL  1  0.798  1  0.851  0.903  0.776  0.939  0.857 

CIV  1  0.829  1  0.831  1  0.864  1  0.822 

CMR  0.864  0.417  0.495  0.446  0.864  0.452  0.413  0.401 

COL  0.584  0.411  0.516  0.501  0.736  0.601  0.748  0.747 

CPV  0.479  0.341  0.542  0.542  0.479  0.255  0.324  0.324 

CRI  0.825  0.477  0.533  0.512  0.933  0.736  0.847  0.831 

CZE  0.721  0.594  0.737  0.737  0.721  0.69  0.936  0.936 

DEU  1  1  1  1  1  1  1  1 

DOM  0.753  0.446  0.554  0.525  0.753  0.351  0.295  0.287 

DZA  0.542  0.368  0.516  0.516  0.655  0.461  0.647  0.647 

ECU  0.627  0.439  0.569  0.549  0.627  0.477  0.556  0.556 

EGY  0.864  0.632  0.782  0.599  0.864  0.696  0.741  0.672 

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Table A.8 (continued) 

Input (Public ‐ Private Capital Expenditure) 

  Quality of overall infrastructure  Quality of Electricity Supply 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

dmu  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

EST  0.73  0.609  0.773  0.773  0.73  0.605  0.814  0.814 

ETH  0.605  0.382  0.514  0.492  0.605  0.41  0.473  0.472 

FIN  1  0.94  1  0.978  0.858  0.851  0.996  0.995 

FRA  0.992  0.917  0.994  0.97  0.851  0.826  0.985  0.984 

GAB  0.531  0.338  0.459  0.459  0.531  0.317  0.354  0.354 

GBR  1  0.92  1  0.92  1  1  1  1 

GEO  0.752  0.525  0.657  0.629  0.752  0.599  0.724  0.724 

GHA  0.709  0.537  0.632  0.576  0.709  0.495  0.451  0.442 

GIN  1  1  1  1  1  1  1  0.59 

GMB  0.839  0.569  0.683  0.651  0.839  0.538  0.591  0.59 

GRC  1  0.839  1  0.815  1  0.896  1  0.868 

GTM  0.968  0.88  0.942  0.86  1  0.916  1  0.892 

GUY  0.976  0.603  0.912  0.685  0.976  0.544  0.722  0.521 

HND  0.711  0.498  0.571  0.559  0.711  0.523  0.592  0.585 

HRV  0.795  0.634  0.753  0.717  0.795  0.677  0.811  0.81 

HTI  0.24  0.23  0.306  0.306  0.516  0.258  0.252  0.252 

IDN  0.652  0.483  0.563  0.559  0.652  0.5  0.6  0.598 

IND  0.598  0.37  0.535  0.535  0.598  0.36  0.481  0.481 

IRL  0.969  0.675  0.781  0.707  0.969  0.845  0.949  0.93 

IRN  0.747  0.557  0.642  0.627  0.747  0.651  0.765  0.754 

ISL  1  1  1  1  1  1  1  1 

ISR  1  1  1  1  1  1  1  1 

ITA  0.92  0.622  0.887  0.636  1  0.819  1  0.846 

JOR  0.749  0.627  0.745  0.745  0.749  0.657  0.836  0.836 

JPN  0.861  0.79  0.951  0.911  0.829  0.778  0.952  0.952 

KAZ  0.765  0.501  0.596  0.596  0.765  0.542  0.648  0.648 

KEN  0.799  0.499  0.589  0.559  0.799  0.505  0.536  0.535 

KHM  0.619  0.472  0.574  0.552  0.619  0.439  0.445  0.445 

KOR  0.722  0.647  0.855  0.855  0.684  0.621  0.889  0.889 

KWT  0.891  0.711  0.81  0.76  0.891  0.739  0.805  0.763 

LKA  0.724  0.526  0.669  0.669  0.715  0.542  0.702  0.702 

LSO  0.619  0.383  0.499  0.48  0.619  0.462  0.533  0.533 

LTU  0.856  0.685  0.783  0.752  0.856  0.72  0.817  0.816 

LUX  1  0.914  1  0.951  0.973  0.9  0.974  0.951 

LVA  0.781  0.575  0.676  0.676  0.81  0.634  0.778  0.778 

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Table A.8 (continued) 

Input (Public ‐ Private Capital Expenditure) 

  Quality of overall infrastructure  Quality of Electricity Supply 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

MAR  0.651  0.466  0.629  0.629  0.736  0.556  0.767  0.767 

MDA  0.714  0.43  0.541  0.515  0.714  0.529  0.648  0.632 

MDG  0.749  0.443  0.461  0.452  0.749  0.443  0.342  0.338 

MEX  0.819  0.533  0.633  0.604  0.819  0.568  0.637  0.636 

MLI  0.705  0.459  0.528  0.512  0.705  0.502  0.502  0.501 

MMR  0.55  0.334  0.404  0.367  0.698  0.466  0.431  0.423 

MNE  0.634  0.402  0.489  0.489  0.634  0.487  0.572  0.572 

MOZ  0.789  0.414  0.493  0.477  0.789  0.521  0.535  0.523 

MUS  0.796  0.592  0.716  0.693  0.796  0.632  0.773  0.772 

MWI  0.888  0.523  0.794  0.529  0.888  0.497  0.622  0.385 

MYS  0.781  0.759  0.893  0.869  0.781  0.715  0.856  0.855 

NAM  0.707  0.599  0.774  0.774  0.707  0.586  0.795  0.795 

NGA  0.639  0.417  0.423  0.411  0.863  0.409  0.237  0.232 

NIC  0.719  0.354  0.45  0.45  0.719  0.408  0.466  0.466 

NLD  0.93  0.872  0.967  0.942  0.93  0.915  0.992  0.992 

NPL  0.762  0.649  0.527  0.453  0.762  0.649  0.271  0.257 

NZL  0.778  0.642  0.768  0.748  0.778  0.705  0.835  0.835 

OMN  0.802  0.746  0.868  0.852  0.802  0.784  0.899  0.898 

PAK  0.993  0.618  0.754  0.584  0.993  0.535  0.45  0.37 

PAN  0.62  0.474  0.688  0.688  0.62  0.502  0.764  0.764 

PER  0.722  0.389  0.477  0.477  0.734  0.562  0.708  0.708 

PHL  0.797  0.564  0.692  0.543  0.797  0.609  0.664  0.608 

POL  0.694  0.471  0.555  0.533  0.861  0.682  0.783  0.782 

PRT  1  0.907  1  0.923  0.98  0.874  0.94  0.923 

PRY  0.554  0.387  0.436  0.39  0.953  0.541  0.459  0.454 

ROM  0.601  0.321  0.424  0.424  0.713  0.485  0.633  0.633 

RUS  0.843  0.509  0.571  0.55  0.843  0.625  0.688  0.668 

RWA  0.743  0.571  0.724  0.696  0.743  0.519  0.605  0.605 

SAU  0.82  0.715  0.834  0.823  0.82  0.799  0.896  0.896 

SEN  0.701  0.411  0.524  0.524  0.701  0.336  0.352  0.352 

SGP  0.943  0.881  0.979  0.979  0.768  0.752  0.989  0.989 

SLE  0.863  0.454  0.527  0.463  0.863  0.433  0.334  0.33 

SLV  1  0.966  1  0.96  1  0.93  1  0.91 

SRB  0.845  0.47  0.469  0.459  0.845  0.681  0.711  0.701 

SUR  0.522  0.365  0.623  0.623  0.522  0.336  0.552  0.552 

SVK  0.801  0.554  0.62  0.62  0.801  0.744  0.903  0.903 

SWZ  1  0.818  1  0.818  0.975  0.78  0.996  0.72 

SYC  0.677  0.518  0.699  0.699  0.677  0.522  0.73  0.73 

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Table A.8 (continued) 

Input (Public ‐ Private Capital Expenditure) 

  Quality of overall infrastructure  Quality of Electricity Supply 

  Input Efficiency  Output Efficiency  Input Efficiency  Output Efficiency 

  FDH  DEA  FDH  DEA  FDH  DEA  FDH  DEA 

TCD  0.389  0.245  0.337  0.337  0.558  0.24  0.22  0.22 

THA  0.738  0.552  0.696  0.696  0.738  0.602  0.8  0.8 

TJK  0.917  0.578  0.828  0.65  0.917  0.467  0.59  0.407 

TUN  0.788  0.593  0.724  0.699  0.788  0.651  0.812  0.812 

TUR  0.726  0.558  0.703  0.703  0.726  0.522  0.667  0.667 

TZA  0.642  0.332  0.441  0.441  0.642  0.313  0.345  0.345 

UGA  0.655  0.353  0.482  0.482  0.655  0.321  0.364  0.364 

UKR  0.917  0.749  0.855  0.712  0.917  0.786  0.885  0.733 

URY  0.85  0.552  0.64  0.613  0.85  0.73  0.842  0.841 

USA  0.945  0.838  0.933  0.914  0.909  0.818  0.926  0.925 

VEN  1  0.637  1  0.736  1  0.662  1  0.676 

VNM  0.524  0.341  0.465  0.465  0.524  0.412  0.53  0.53 

YEM  1  0.805  1  0.809  1  0.681  1  0.449 

ZAF  0.852  0.661  0.718  0.702  0.843  0.565  0.552  0.544 

ZMB  0.681  0.483  0.516  0.514  0.681  0.483  0.516  0.515 

ZWE  1  0.891  1  0.674  1  0.891  1  0.342 

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Table A.9. List of Countries

Code  Region  Country  Code  Region  Country  Code  Region  Country 

AGO  AFR  Angola  GRD  LAC  Grenada  PER  LAC  Peru 

ALB  ECA  Albania  GTM  LAC  Guatemala  PHL  EAP  Philippines 

ARE  MNA  United Arab Emirates  GUY  LAC  Guyana  PNG  EAP  Papua New Guinea 

ARG  LAC  Argentina  HND  LAC  Honduras  POL  ECA  Poland 

ARM  ECA  Armenia  HRV  ECA  Croatia  PRI  LAC  Puerto Rico 

ATG  LAC  Antigua and Barbuda  HTI  LAC  Haiti  PRY  LAC  Paraguay 

AZE  ECA  Azerbaijan  HUN  ECA  Hungary  QAT  MNA  Qatar 

BDI  AFR  Burundi  IDN  EAP  Indonesia  ROM  ECA  Romania 

BEN  AFR  Benin  IND  SAS  India  RUS  ECA  Russian Federation 

BFA  AFR  Burkina Faso  IRN  MNA  Iran, Islamic Rep.  RWA  AFR  Rwanda 

BGD  SAS  Bangladesh  JAM  LAC  Jamaica  SAU  MNA  Saudi Arabia 

BGR  ECA  Bulgaria  JOR  MNA  Jordan  SDN  AFR  Sudan 

BHR  MNA  Bahrain  KAZ  ECA  Kazakhstan  SEN  AFR  Senegal 

BHS  LAC  Bahamas, The  KEN  AFR  Kenya  SGP  EAP  Singapore 

BIH  ECA Bosnia & Herzegovina 

KGZ  ECA  Kyrgyz Republic  SLB  EAP  Solomon Islands 

BLR  ECA  Belarus  KHM  EAP  Cambodia  SLE  AFR  Sierra Leone 

BLZ  LAC  Belize  KNA  LAC  St. Kitts and Nevis  SLV  LAC  El Salvador 

BOL  LAC  Bolivia  KOR  EAP  Korea, Rep.  SRB  ECA  Serbia 

BRA  LAC  Brazil  KWT  MNA  Kuwait  SUR  LAC  Suriname 

BRB  LAC  Barbados  LAO  EAP  Lao PDR  SVK  ECA  Slovak Republic 

BRN  EAP  Brunei Darussalam  LBN  MNA  Lebanon  SVN  ECA  Slovenia 

BTN  SAS  Bhutan  LCA  LAC  St. Lucia  SWZ  AFR  Eswatini 

BWA  AFR  Botswana  LKA  SAS  Sri Lanka  SYC  AFR  Seychelles 

CAF  AFR  Central African Rep.  LSO  AFR  Lesotho  SYR  MNA  Syrian Arab Republic 

CHL  LAC  Chile  LBR  AFR  Liberia  TCD  AFR  Chad 

CHN  EAP  China  LBY  MNA  Lybia  TGO  AFR  Togo 

CIV  AFR  Côte d'Ivoire  LTU  ECA  Lithuania  THA  EAP  Thailand 

CMR  AFR  Cameroon  LVA  ECA  Latvia  TJK  ECA  Tajikistan 

COG  AFR  Congo, Rep.  MAR  MNA  Morocco  TKM  ECA  Turkmenistan 

COL  LAC  Colombia  MDA  ECA  Moldova  TLS  EAP  Timor‐Leste 

COM  AFR  Comoros  MDG  AFR  Madagascar  TON  EAP  Tonga 

CPV  AFR  Cabo Verde  MEX  LAC  Mexico  TTO  LAC  Trinidad and Tobago 

CRI  LAC  Costa Rica  MKD  ECA  Macedonia, FYR  TUN  MNA  Tunisia 

CZE  ECA  Czech Republic  MLI  AFR  Mali  TUR  ECA  Turkey 

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Table A.9. Continued 

Code  Region  Country  Code  Region  Country  Code  Region  Country 

DJI  MNA  Djibouti  MMR  EAP  Myanmar  TZA  AFR  Tanzania 

DMA  LAC  Dominica  MNE  EAP  Montenegro, Rep. of  UGA  AFR  Uganda 

DOM  LAC Dominican Republic 

MNG  EAP  Mongolia  UKR  ECA  Ukraine 

DZA  MNA  Algeria  MOZ  AFR  Mozambique  URY  LAC  Uruguay 

ECU  LAC  Ecuador  MRT  AFR  Mauritania  UZB  ECA  Uzbekistan 

EGY  MNA  Egypt, Arab Rep.  MUS  AFR  Mauritius  VCT  LAC St. Vincent & Grenadines 

ERI  AFR  Eritrea  MWI  AFR  Malawi  VEN  LAC  Venezuela, RB 

EST  ECA  Estonia  MYS  EAP  Malaysia  VNM  EAP  Vietnam 

ETH  AFR  Ethiopia  NAM  AFR  Namibia  VUT  EAP  Vanuatu 

FJI  EAP  Fiji  NER  AFR  Niger  WSM  EAP  Samoa 

GAB  AFR  Gabon  NGA  AFR  Nigeria  YEM  MNA  Yemen, Rep. 

GEO  ECA  Georgia  NIC  LAC  Nicaragua  ZAF  AFR  South Africa 

GHA  AFR  Ghana  NPL  SAS  Nepal  ZAR  AFR  Congo, Dem. Rep. 

GIN  AFR  Guinea  OMN  MNA  Oman  ZMB  AFR  Zambia 

GMB  AFR  Gambia, The  PAK  SAS  Pakistan  ZWE  AFR  Zimbabwe 

GNB  AFR  Guinea‐Bissau  PAN  LAC  Panama 

Table A.9. Continued 

Developed countries included in the efficiency estimation for learning scores 

Code  Country  Code  Country  Code  Country 

AUS  Australia  FIN  Finland  LUX  Luxembourg 

AUT  Austria  FRA  France  MLT  Malta 

BEL  Belgium  GBR  United Kingdom  NLD  Netherlands 

CAN  Canada  GRC  Greece  NOR  Norway 

CHE  Switzerland  IRL  Ireland  NZL  New Zealand 

CYP  Cyprus  ISL  Iceland  PRT  Portugal 

DEU  Germany  ISR  Israel  SWE  Sweden 

DNK  Denmark  ITA  Italy  USA  United States 

ESP  Spain  JPN  Japan 

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Table A.10. Definition and Source of Variables Definition of Variable   Source 

Output variables for education   

School enrollment, primary (% gross)   World Bank WDI 

School enrollment, primary (% net)   World Bank WDI 

School enrollment, secondary (% gross)   World Bank WDI 

School enrollment, secondary (% net)   World Bank WDI 

Tertiary level complete, ages 15+  Barro‐Lee Database 

Literacy rate, youth total (% of people ages 15‐24)   World Bank WDI 

Average years of school, ages 15+  Barro‐Lee Database 

First level complete, ages 15+  Barro‐Lee Database 

second level complete, ages 15+  Barro‐Lee Database 

PISA Science scores  www.oecd.org/pisa/data 

PISA Mathematics scores  www.oecd.org/pisa/data 

PISA Reading scores  www.oecd.org/pisa/data 

Quality of primary education, 1‐7 (best)  World Economic Forum 

Primary education Net Enrollment, net %  World Economic Forum 

Secondary Education Gross Enrollment, gross %  World Economic Forum 

Tertiary education enrollment, gross %  World Economic Forum 

Quality of the education system, 1‐7 (best)  World Economic Forum 

Quality of math and science education, 1‐7 (best)  World Economic Forum 

Input variables for education 

Public education spending per capita in PPP terms, calculated  World Bank WDI 

Literacy rate, adult total (% of people ages 15 and above)   World Bank WDI 

Teachers per pupil, equal the reciprocal of pupils per teacher  World Bank WDI 

Output variables for health 

Life expectancy at birth, total (years)   World Bank WDI 

Immunization, DPT (% of children ages 12‐23 months)   World Bank WDI 

Immunization, measles (% of children ages 12‐23 months)   World Bank WDI 

Disability Adjusted Life Expectancy Institute for Health Metrics and 

Evaluation (IHME) 

Tuberculosis cases/100,000 pop.  World Economic Forum 

Maternal Mortality Ratio (per 100 000 live births)  World Health Organization 

Infant mortality rate (probability of dying between birth and age 1 per 1000 live births) 

World Health Organization 

Input variables for health 

Literacy rate, adult total (% of people ages 15 and above)   World Bank WDI 

public spending on health per capita in PPP terms, calculated  World Bank WDI 

public spending on health per capita in PPP terms, calculated  World Bank WDI 

Output variables for Infrastructure 

Quality of overall infrastructure, 1‐7 (best)  World Economic Forum 

Quality of roads, 1‐7 (best)  World Economic Forum 

Quality of railroad infrastructure, 1‐7 (best)  World Economic Forum 

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Table A.10 (Continued)   

Definition of Variable  Source 

Quality of port infrastructure, 1‐7 (best)  World Economic Forum 

Quality of air transport infrastructure, 1‐7 (best)  World Economic Forum 

A. Transport infrastructure  World Economic Forum 

Quality of electricity supply, 1‐7 (best)  World Economic Forum 

Input variables for Infrastructure 

Private investment spending per capita in real terms, calculated  World Economic Outlook 

Public investment spending per capita in real terms, calculated  World Economic Outlook 

Variables used in the calculation  World Bank WDI 

Pupil‐teacher ratio, primary  World Bank WDI 

Public spending on education, total (% of GDP)  World Bank WDI 

GDP per capita, PPP (constant 2011 international $)  World Bank WDI 

Health expenditure, private (% of GDP)  World Bank WDI 

Health expenditure, public (% of GDP)  World Bank WDI 

GDP (constant 2010 US$)   World Economic Outlook 

GDP (current US$)   World Economic Outlook 

National Currency per PPP dollar (Units National Currency per PPP dollar)  World Economic Outlook 

Population (Millions of Persons)  World Economic Outlook 

Variables used in the Panel Tobit regression 

Wages and salaries (% of total public expenditure)  World Bank WDI 

Total government expenditure (% of GDP)  World Bank WDI 

Share of expenditures publicly financed (public/total)  World Bank WDI 

GDP per capita in constant 2011 US dollars  World Bank WDI 

Urban population (% of total)  World Bank WDI 

Dummy variable for HIV/AIDS  WHO mappings of diseases 

Gini Coefficient  World Bank WDI 

Aid (% of fiscal revenue) calculated as Official development assistance  World Bank WDI 

and official aid (current US$) *official exchange rate * PPP conversion factor 

/ Revenue, excluding grants (current LCU) 

Institutional Indicators including 

a. Worldwide Governance Research Indicators  World Bank WDI 

Control of Corruption: Estimate  World Bank WDI 

Government Effectiveness: Estimate  World Bank WDI 

Political Stability and Absence of Violence/Terrorism: Estimate  World Bank WDI 

Regulatory Quality: Estimate  World Bank WDI 

Rule of Law: Estimate  World Bank WDI 

Voice and Accountability: Estimate  World Bank WDI 

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Figure A. 1. Efficiency Frontiers for Education

Free Disposable Hull (FDH) Data Envelopment Analysis (DEA)

AGO

ALB

ARG

ARM

ATG

AUS

AZEBDI

BEN

BFA

BGD

BGR

BLR

BLZ

BOL

BRABRB

BWA

CAF

CAN

CHECHL

CHN

CIV

CMRCOG

COL

COM

CPV CRI CYPDEU

DJI

DNK

DOM

ECU

EGYESP

EST

ETH

FIN

FJIFRA

GBRGEO

GHA

GIN

GMBGNB

GTM

GUY

HND

HRV

HUNIDN IND

IRN ISLITA

KAZ

KEN

KGZ

KHM

KNA

KOR

LAO

LBN

LKA

LSO

LTU LVAMAR

MDA

MEX

MKD

MLI

MNG

MOZ

MRT

MUSMWIMYS

NAM

NER

NGA

NIC

NLD NOR

NPLNZL

OMN

PAK

PANPERPHL

POL

PRYROM

RUSRWA

SAU

SDN

SEN SLB

SLE

SLV

SVNSWE

SWZ

TCD

TGOTHA

TJK

TTO

TUN

TUR

TZA

UGA

UKRURY

USAVCT

VEN

VNM

VUTZWE

5060

7080

9010

0N

et P

rimar

y S

chool

Enr

ollm

ent

500 1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI

Net Primary Enrollment vs Education Expenditure

AGO

ALB

ARG

ARM

ATG

AUS

AZEBDI

BEN

BFA

BGD

BGR

BLR

BLZ

BOL

BRABRB

BWA

CAF

CAN

CHECHL

CHN

CIV

CMRCOG

COL

COM

CPV CRI CYPDEU

DJI

DNK

DOM

ECU

EGY

ESP

EST

ETH

FIN

FJIFRA

GBRGEO

GHA

GIN

GMBGNB

GTM

GUY

HND

HRV

HUNIDN IND

IRN ISLITA

KAZ

KEN

KGZ

KHM

KNA

KOR

LAO

LBN

LKA

LSO

LTU LVAMAR

MDA

MEX

MKD

MLI

MNG

MOZ

MRT

MUSMWIMYS

NAM

NER

NGA

NIC

NLD NOR

NPLNZL

OMN

PAK

PANPERPHL

POL

PRYROM

RUSRWA

SAU

SDN

SEN SLB

SLE

SLV

SVNSWE

SWZ

TCD

TGOTHA

TJK

TTO

TUN

TUR

TZA

UGA

UKR

URY

USAVCT

VEN

VNM

VUTZWE

5060

7080

90100

Net P

rim

ary

Sch

ool E

nro

llmen

t

500 1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI

Net Primary Enrollment vs Education Expenditure

(a.1) (a.2)

AGO

ALB

ARG

ARM

ATG

AUS

AUT

BDI

BEN

BFA

BGD

BGR

BLR

BLZBOL

BRABRB

CAF

CAN

CHECHLCHN

CIV

CMRCOG

COL

COM

CPV

CRI

CYPCZE

DEU

DJI

DNK

DOM

ECU

EGY

ESP

EST

ETH

FIN

FJI

FRAGBR

GEO

GHA

GIN

GMBGTM

GUY

HND

HRVHUN

IDN

IND

IRN

ISL

ITA

JAM

KAZ

KEN

KGZKNA

KOR

LAO

LBN

LCA

LKA

LSO

LTU LVA

MAR

MDA

MDG

MEXMKD

MLI

MNG

MOZMRT

MUS

MWI

MYS

NER

NGA

NIC

NLD

NOR

NPL

NZL

OMN

PAK

PAN

PER

PHL

POL

PRY

ROMRUS

RWA

SAU

SDN SEN

SLBSLE

SLV

SVK

SVN

SWE

SWZ

TCD

TGO

THA

TJKTKMTUNTUR

TZA

UGA

UKRURYUSA

VCT

VEN

VUT

ZAF

ZARZWE

050

100

150

Net S

eco

ndary

Sch

ool E

nro

llment

500 1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI

Net Secondary Enrollment vs Education Expenditure

AGO

ALB

ARG

ARM

ATG

AUS

AUT

BDI

BEN

BFA

BGD

BGR

BLR

BLZBOL

BRABRB

CAF

CAN

CHECHLCHN

CIV

CMRCOG

COL

COM

CPV

CRI

CYPCZE

DEU

DJI

DNK

DOM

ECU

EGY

ESP

EST

ETH

FIN

FJI

FRAGBR

GEO

GHA

GIN

GMBGTM

GUY

HND

HRVHUN

IDN

IND

IRN

ISL

ITA

JAM

KAZ

KEN

KGZKNA

KOR

LAO

LBN

LCA

LKA

LSO

LTU LVA

MAR

MDA

MDG

MEXMKD

MLI

MNG

MOZMRT

MUS

MWI

MYS

NER

NGA

NIC

NLD

NOR

NPL

NZL

OMN

PAK

PAN

PER

PHL

POL

PRY

ROMRUS

RWA

SAU

SDN SEN

SLBSLE

SLV

SVK

SVN

SWE

SWZ

TCD

TGO

THA

TJKTKMTUNTUR

TZA

UGA

UKRURYUSA

VCT

VEN

VUT

ZAF

ZARZWE

050

100

150

Net

Sec

ond

ary

Sch

ool

Enr

ollm

ent

500 1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI

Net Secondary Enrollment vs Education Expenditure

(b.1) (b.2)

AGO

ALB

ARG

ARM

AUS

AUT

AZE

BDI

BEN

BFA

BGD

BGR

BLZ

BOL

BRA

BRB

BWA

CAN

CHE

CHL

CHN

CIVCMR

COL

CPV

CRI

CYP

CZE

DEU

DNK

DOM

ECU

EGY

ESP

EST

ETH

FIN

FRA

GAB

GBR

GEO

GHAGIN

GMB

GTM

GUY

HND

HRV

HUN

IDN

IND

IRN

ISL

ITA

JAM

KAZ

KEN

KGZ

KHM

KOR

LAO

LBN

LKA

LSO

LTU

LVA

MAR

MDA

MDG

MEX

MKD

MLI

MNG

MOZMRT

MUS

MWI

MYS

NAMNGA

NIC

NLD

NOR

NPL

NZL

OMN

PAK

PAN

PER

PHL

POL

PRY

ROM

RUS

RWA

SAU

SEN

SLE

SLV

SVK

SVN

SWE

SWZTCD

THA

TJK

TTO

TUN

TUR

TZAUGA

UKR

URY

USA

VEN

VNMZAF

ZWE

020

4060

80100

Tert

iary

Gro

ss E

nro

llment

500 1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI/World Economic Forum

Tertiary Gross Enrollment vs Education Expenditure

(c.1)

AGO

ALB

ARG

ARM

AUS

AUT

AZE

BDI

BEN

BFA

BGD

BGR

BLZ

BOL

BRA

BRB

BWA

CAN

CHE

CHL

CHN

CIVCMR

COL

CPV

CRI

CYP

CZE

DEU

DNK

DOM

ECU

EGY

ESP

EST

ETH

FIN

FRA

GAB

GBR

GEO

GHAGIN

GMB

GTM

GUY

HND

HRV

HUN

IDN

IND

IRN

ISL

ITA

JAM

KAZ

KEN

KGZ

KHM

KOR

LAO

LBN

LKA

LSO

LTU

LVA

MAR

MDA

MDG

MEX

MKD

MLI

MNG

MOZMRT

MUS

MWI

MYS

NAMNGA

NIC

NLD

NOR

NPL

NZL

OMN

PAK

PAN

PER

PHL

POL

PRY

ROM

RUS

RWA

SAU

SEN

SLE

SLV

SVK

SVN

SWE

SWZTCD

THA

TJK

TTO

TUN

TUR

TZAUGA

UKR

URY

USA

VEN

VNMZAF

ZWE

020

4060

80100

Tert

iary

Gro

ss E

nro

llment

500 1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI/World Economic Forum

Tertiary Gross Enrollment vs Education Expenditure

(c.2)

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84

AGO

ALB

ARG

ARM

AUS

AUT

AZE

BDI

BEN

BFABGD

BGRBLZ

BOL

BRA

BRB

BWA

CAN

CHE

CHL

CHN

CIV

CMR

COL

CPV

CRI

CYP

CZE

DEU DNK

DOM

ECU

EGY

ESP

EST

ETH

FIN

FRA

GAB

GBR

GEO GHA

GIN

GMB

GTM

GUY

HND

HRV

HTI

HUNIDN

IND

IRN

ISL

ITA

JAM

KAZ KEN

KGZKHM

KOR

LAO

LBN

LKA

LSO

LTULVA

MAR

MDA

MDGMEX

MKD

MLI

MNG

MOZMRT

MUS

MWI

MYS

NAM

NGA

NIC

NLD

NOR

NPL

NZL

OMN

PAKPAN

PER

PHL

POL

PRY

ROM

RUSRWA

SAU

SEN

SLESLV

SVK

SVN SWE

SWZ

TCD

THA

TJK

TTO

TUN

TUR

TZA

UGA

UKR

URY

USA

VEN

VNM

ZAF

ZWE

23

45

67

Qu

alit

y of

pri

mar

y e

duca

tion

500 1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI/World Economic Forum

Quality of primary education vs Education Expenditure

(d.1)

AGO

ALB

ARG

ARM

AUS

AUT

AZE

BDI

BEN

BFABGD

BGRBLZ

BOL

BRA

BRB

BWA

CAN

CHE

CHL

CHN

CIV

CMR

COL

CPV

CRI

CYP

CZE

DEU DNK

DOM

ECU

EGY

ESP

EST

ETH

FIN

FRA

GAB

GBR

GEO GHA

GIN

GMB

GTM

GUY

HND

HRV

HTI

HUNIDN

IND

IRN

ISL

ITA

JAM

KAZ KEN

KGZKHM

KOR

LAO

LBN

LKA

LSO

LTULVA

MAR

MDA

MDGMEX

MKD

MLI

MNG

MOZMRT

MUS

MWI

MYS

NAM

NGA

NIC

NLD

NOR

NPL

NZL

OMN

PAKPAN

PER

PHL

POL

PRY

ROM

RUSRWA

SAU

SEN

SLESLV

SVK

SVN SWE

SWZ

TCD

THA

TJK

TTO

TUN

TUR

TZA

UGA

UKR

URY

USA

VEN

VNM

ZAF

ZWE

23

45

67

Qua

lity

of p

rima

ry e

duc

atio

n

500 1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI/World Economic Forum

Quality of primary education vs Education Expenditure

(d.2)

AGO

ALB

ARGARM

AUS

AUT

AZE

BDI

BEN

BFA

BGDBGR

BLZ

BOL

BRA

BRB

BWA

CAN

CHE

CHL

CHN

CIV

CMRCOL

CPV

CRI

CYP

CZE

DEU DNK

DOM

ECU

EGY

ESP

EST

ETH

FIN

FRA

GAB

GBR

GEO

GHA

GIN

GMB

GTM

GUY

HND

HRV

HTI

HUN

IDN IND

IRN

ISL

ITA JAMKAZ

KEN

KGZ

KHM

KOR LAO

LBN

LKA

LSO

LTULVA

MARMDA

MDGMEX

MKD

MLI

MNG

MOZ

MRT

MUS

MWI

MYS

NAM

NGA

NIC

NLD

NOR

NPL

NZL

OMN

PAK

PAN

PER

PHL

POL

PRY

ROMRUS

RWA

SAU

SEN

SLESLV

SVK

SVN

SWE

SWZ

TCD

THATJK

TTO

TUN

TURTZA

UGA

UKR

URY

USA

VEN

VNM

ZAF

ZWE

23

45

6Q

ual

ity o

f th

e e

duc

atio

n sy

ste

m

500 1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI/World Economic Forum

Quality of the education system vs Education Expenditure

(e.1)

AGO

ALB

ARGARM

AUS

AUT

AZE

BDI

BEN

BFA

BGDBGR

BLZ

BOL

BRA

BRB

BWA

CAN

CHE

CHL

CHN

CIV

CMRCOL

CPV

CRI

CYP

CZE

DEU DNK

DOM

ECU

EGY

ESP

EST

ETH

FIN

FRA

GAB

GBR

GEO

GHA

GIN

GMB

GTM

GUY

HND

HRV

HTI

HUN

IDN IND

IRN

ISL

ITA JAMKAZ

KEN

KGZ

KHM

KOR LAO

LBN

LKA

LSO

LTULVA

MARMDA

MDGMEX

MKD

MLI

MNG

MOZ

MRT

MUS

MWI

MYS

NAM

NGA

NIC

NLD

NOR

NPL

NZL

OMN

PAK

PAN

PER

PHL

POL

PRY

ROMRUS

RWA

SAU

SEN

SLESLV

SVK

SVN

SWE

SWZ

TCD

THATJK

TTO

TUN

TURTZA

UGA

UKR

URY

USA

VEN

VNM

ZAF

ZWE

23

45

6Q

ual

ity o

f the

edu

catio

n sy

stem

500 1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI/World Economic Forum

Quality of the education system vs Education Expenditure

(e.2)

ALB

ARG

AUSAUT

AZE BGR

BRA

CANCHE

CHL

CHN

COL

CRI

CYP

CZE

DEU DNK

DOM

ESP

FIN

FRAGBR

GEO

HRV

HUN

IDN

ISL

ITA

KAZ

KGZ

KOR

LBN

LTULVA

MDAMEX

MKD

NLD

NORNZL

PAN

PER

POL

ROM

RUSSVK

SVN

SWE

THA TTO

TUN

TURURY

USA

VNM

300

350

400

450

500

550

Pis

a M

athem

atic

s Lite

racy

sco

re

1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI/NCES

Pisa Mathematics Literacy score vs Education Expenditure

(f.1)

ALB

ARG

AUSAUT

AZE BGR

BRA

CANCHE

CHL

CHN

COL

CRI

CYP

CZE

DEU DNK

DOM

ESP

FIN

FRAGBR

GEO

HRV

HUN

IDN

ISL

ITA

KAZ

KGZ

KOR

LBN

LTULVA

MDAMEX

MKD

NLD

NORNZL

PAN

PER

POL

ROM

RUSSVK

SVN

SWE

THA TTO

TUN

TURURY

USA

VNM

300

350

400

450

500

550

Pis

a M

ath

em

atic

s Lite

racy

sco

re

1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI/NCES

Pisa Mathematics Literacy score vs Education Expenditure

(f.1)

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85

ALB

ARG

AUS

AUT

AZE

BGR

BRA

CAN

CHE

CHL

CHN

COLCRI

CYP

CZE

DEUDNK

DOM

ESP

FIN

FRAGBR

GEO

HRVHUN

IDN

ISLITA

KAZ

KGZ

KOR

LBN

LTU

LVA

MDAMEX

MKD

NLD NORNZL

PAN

PER

POL

ROM

RUS

SVK

SVNSWE

THATTO

TUN

TUR

URY

USA

VNM

300

350

400

450

500

550

Pis

a R

eadin

g L

itera

cy

1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI/NCES

Pisa Reading Literacy vs Education Expenditure

(g.1)

ALB

ARG

AUS

AUT

AZE

BGR

BRA

CAN

CHE

CHL

CHN

COLCRI

CYP

CZE

DEUDNK

DOM

ESP

FIN

FRAGBR

GEO

HRVHUN

IDN

ISLITA

KAZ

KGZ

KOR

LBN

LTU

LVA

MDAMEX

MKD

NLD NORNZL

PAN

PER

POL

ROM

RUS

SVK

SVNSWE

THATTO

TUN

TUR

URY

USA

VNM

300

350

400

450

500

550

Pis

a R

ead

ing L

itera

cy

1000 1500 2000 2500Orthogonalized Public Expditure on Education

Data Source: World Bank WDI/NCES

Pisa Reading Literacy vs Education Expenditure

(g.1)

ALBARG

ARM

AUS

AUT

BDI

BEN

BGD

BGR BLZ

BOL

BRA

BRBBWA

CAF

CANCHE

CHL

CHN

CIV

CMRCOG

COL

CRI

CYP

CZE DEU

DNK

DOM ECU

EGY

ESP

EST

FINFJIFRA

GAB

GBR

GHA

GMB

GTM

GUY

HND

HRV

HTI

HUN

IDN

IND

IRN

ISL

ITAJAM

KAZ

KEN

KGZ

KHM

KOR

LAO

LKA

LSO

LTULVA

MAR

MDA

MEX

MLI

MNG

MOZ

MRT

MUS

MWI

MYS

NAM

NER

NIC

NLDNOR

NPL

NZL

PAK

PANPER

PHL

POL

PRY

ROM

RUS

RWA

SAU

SDNSEN

SLE

SLV

SVK

SVN SWE

SWZ

TGO

THA

TJKTTO

TUNTUR

TZAUGA

UKR

URY

USA

VEN

VNM

ZAF

ZAR

ZWE

05

1015

Ave

rage

Yea

r of

Sch

ool

500 1000 1500 2000 2500Orthogonalized Public Expenditure on Education

Data Source: World Bank WDI, Barro-Lee database

Average Year of School vs Education Expenditure

ALBARG

ARM

AUS

AUT

BDI

BEN

BGD

BGR BLZ

BOL

BRA

BRBBWA

CAF

CANCHE

CHL

CHN

CIV

CMRCOG

COL

CRI

CYP

CZE DEU

DNK

DOM ECU

EGY

ESP

EST

FINFJIFRA

GAB

GBR

GHA

GMB

GTM

GUY

HND

HRV

HTI

HUN

IDN

IND

IRN

ISL

ITAJAM

KAZ

KEN

KGZ

KHM

KOR

LAO

LKA

LSO

LTULVA

MAR

MDA

MEX

MLI

MNG

MOZ

MRT

MUS

MWI

MYS

NAM

NER

NIC

NLDNOR

NPL

NZL

PAK

PANPER

PHL

POL

PRY

ROM

RUS

RWA

SAU

SDNSEN

SLE

SLV

SVK

SVN SWE

SWZ

TGO

THA

TJKTTO

TUNTUR

TZAUGA

UKR

URY

USA

VEN

VNM

ZAF

ZAR

ZWE0

510

15A

vera

ge Y

ear of S

chool

500 1000 1500 2000 2500Orthogonalized Public Expenditure on Education

Data Source: World Bank WDI, Barro-Lee database

Average Year of School vs Education Expenditure

(h.1) (h.2)

ALB

ARG

ARM

AUS

AUT

BDI

BEN

BGD

BGR

BLZ

BOL

BRA

BRB

BWA

CAF

CAN

CHE

CHL

CHN

CIV

CMR

COG

COL

CRI

CYP

CZE

DEU

DNK

DOM

ECUEGY

ESP

EST

FIN

FJI FRA

GAB

GBR

GHA

GMB

GTM

GUY

HND

HRV

HTI

HUN

IDNIND

IRN

ISL

ITAJAM

KAZ

KEN

KGZ

KHM

KOR

LAO

LKA

LSO

LTU

LVA

MAR

MDA

MEX

MLI

MNG

MOZ

MRT

MUS

MWI

MYS

NAM

NER

NIC

NLDNOR

NPL NZL

PAK

PAN

PER

PHL

POL

PRY

ROM

RUS

RWA

SAU

SDN SEN

SLE

SLV

SVK

SVN

SWE

SWZ

TGO

THA

TJK

TTO

TUN

TUR

TZAUGA

UKR

URY

USAVEN

VNM

ZAF

ZAR

ZWE

020

4060

80S

eco

nd

Lev

el C

omp

lete

500 1000 1500 2000 2500Orthogonalized Public Expenditure on Education

Data Source: World Bank WDI, Barro-Lee database

Second Level Complete vs Education Expenditure

ALB

ARG

ARM

AUS

AUT

BDI

BEN

BGD

BGR

BLZ

BOL

BRA

BRB

BWA

CAF

CAN

CHE

CHL

CHN

CIV

CMR

COG

COL

CRI

CYP

CZE

DEU

DNK

DOM

ECUEGY

ESP

EST

FIN

FJI FRA

GAB

GBR

GHA

GMB

GTM

GUY

HND

HRV

HTI

HUN

IDNIND

IRN

ISL

ITAJAM

KAZ

KEN

KGZ

KHM

KOR

LAO

LKA

LSO

LTU

LVA

MAR

MDA

MEX

MLI

MNG

MOZ

MRT

MUS

MWI

MYS

NAM

NER

NIC

NLDNOR

NPL NZL

PAK

PAN

PER

PHL

POL

PRY

ROM

RUS

RWA

SAU

SDN SEN

SLE

SLV

SVK

SVN

SWE

SWZ

TGO

THA

TJK

TTO

TUN

TUR

TZAUGA

UKR

URY

USAVEN

VNM

ZAF

ZAR

ZWE

020

4060

80S

eco

nd L

eve

l Com

ple

te

500 1000 1500 2000 2500Orthogonalized Public Expenditure on Education

Data Source: World Bank WDI, Barro-Lee database

Second Level Complete vs Education Expenditure

(i.1) (i.2)

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86

AGO

ALB ARGARMAZE

BDI

BENBFA

BGD

BGRBLR BOLBRA

CAF

CHLCHN

CIV

CMR COG

COL

COM

CPV CRI CYPDOM ECU

EGY

ESP EST

GAB

GEO

GHA

GIN

GMBGNB

GTMGUY HND

HRVIDN

IND

IRNITA

KEN

KGZ

KHM

LAO

LBN LKA

LSO

LTU LVA

MAR

MDA

MDG

MEX

MLI

MNG

MOZ

MUS

MWI

MYS

NAM

NER

NPL

OMN

PAK

PAN PERPHL PRYROM RUS

RWA

SAU

SEN

SLE

SLVSWZ

TCD

TGO

THA TUNTUR

TZA

UGA

UKRURYVENVNMZAF

ZAR

ZWE

2040

6080

100

You

th L

itera

cy R

ate

0 200 400 600 800 1000Orthogonalized Public Expenditure on Education

Data Source: World Bank WDI

Youth Literacy Rate vs Education Expenditure

AGO

ALB ARGARMAZE

BDI

BENBFA

BGD

BGRBLR BOLBRA

CAF

CHLCHN

CIV

CMR COG

COL

COM

CPV CRI CYPDOM ECU

EGY

ESP EST

GAB

GEO

GHA

GIN

GMBGNB

GTMGUY HND

HRVIDN

IND

IRNITA

KEN

KGZ

KHM

LAO

LBN LKA

LSO

LTU LVA

MAR

MDA

MDG

MEX

MLI

MNG

MOZ

MUS

MWI

MYS

NAM

NER

NPL

OMN

PAK

PAN PERPHL PRYROM RUS

RWA

SAU

SEN

SLE

SLVSWZ

TCD

TGO

THA TUNTUR

TZA

UGA

UKRURYVENVNMZAF

ZAR

ZWE

2040

6080

100

Yout

h L

itera

cy R

ate

0 200 400 600 800 1000Orthogonalized Public Expenditure on Education

Data Source: World Bank WDI

Youth Literacy Rate vs Education Expenditure

(j.1)

(j.2)

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87

Figure A.2. Efficiency Frontiers for Health

Free Disposable Hull (FDH) Data Envelopment Analysis (DEA)

AGO

ALBARG

ARM

ATG

AUSAUT

AZE

BDI

BENBFA

BGD

BGR

BHRBHS

BLR

BLZ

BOL

BRABRB

BWA

CAF

CANCHE

CHL

CHN

CIV

CMR

COG

COL

COM

CPV

CRICYPCZE

DEU

DJI

DNK

DOM

DZAECU

EGY

ERI

ESP

EST

ETH

FIN

FJI

FRA

GAB

GBR

GEO

GHA

GIN

GMB

GNB

GRC

GRDGTM

GUY

HND

HRV

HTI

HUN

IDNIND

IRN

ISLITA

JAMJOR

KAZ

KEN

KGZ

KHM

KOR

LAO

LBN

LCALKA

LSO

LTU

LUX

LVAMAR

MDA

MDG

MEXMKD

MLI

MNG

MOZ

MRT

MUS

MWI

MYS

NAM

NER

NGA

NIC

NLDNOR

NPL

NZL

OMN

PAK

PAN

PER

PHL

PNG

POL

PRY

ROM

RUS

RWA

SAU

SDN

SEN

SLB

SLE

SLV

SVK

SVN

SWE

SWZ

TCD

TGO

THA

TJK

TKM

TON

TTO

TUNTUR

TZA

UGA

UKR

URY

USA

UZB

VCTVEN

VNM

VUT

WSM

YEM

ZAF ZARZMB

ZWE

5060

7080

90Li

fe E

xpe

cta

ncy

1000 2000 3000 4000 5000Orthogonalized Public Expditure on Health

Data Source: World Bank WDI

Life Expectancy vs Health Expenditure

AGO

ALBARG

ARM

ATG

AUSAUT

AZE

BDI

BENBFA

BGD

BGR

BHRBHS

BLR

BLZ

BOL

BRABRB

BWA

CAF

CANCHE

CHL

CHN

CIV

CMR

COG

COL

COM

CPV

CRICYPCZE

DEU

DJI

DNK

DOM

DZAECU

EGY

ERI

ESP

EST

ETH

FIN

FJI

FRA

GAB

GBR

GEO

GHA

GIN

GMB

GNB

GRC

GRDGTM

GUY

HND

HRV

HTI

HUN

IDNIND

IRN

ISLITA

JAMJOR

KAZ

KEN

KGZ

KHM

KOR

LAO

LBN

LCALKA

LSO

LTU

LUX

LVAMAR

MDA

MDG

MEXMKD

MLI

MNG

MOZ

MRT

MUS

MWI

MYS

NAM

NER

NGA

NIC

NLDNOR

NPL

NZL

OMN

PAK

PAN

PER

PHL

PNG

POL

PRY

ROM

RUS

RWA

SAU

SDN

SEN

SLB

SLE

SLV

SVK

SVN

SWE

SWZ

TCD

TGO

THA

TJK

TKM

TON

TTO

TUNTUR

TZA

UGA

UKR

URY

USA

UZB

VCTVEN

VNM

VUT

WSM

YEM

ZAF ZARZMB

ZWE

5060

7080

90Life

Exp

ecta

ncy

1000 2000 3000 4000 5000Orthogonalized Public Expditure on Health

Data Source: World Bank WDI

Life Expectancy vs Health Expenditure

(a.1) (a.2)

AGO

ALB

ARG ARM

ATG

AUSAUT

AZE

BDI

BEN

BFA

BGD

BGR

BHRBHS BLR

BLZBOLBRA

BRB

BWA

CAF

CAN

CHE

CHL

CHN

CIV

CMRCOG

COL

COM

CPV

CRI

CYP CZE

DEU

DJI

DMA

DNK

DOM

DZA

ECU

EGYERI

ESP

EST

ETH

FINFJI FRA

GAB

GBR

GEO GHA

GIN

GMB

GNB

GRC

GRD

GTM

GUYHNDHRV

HTI

HUN

IDNIND

IRN

ISL

ITA

JAM

JORKAZ

KEN

KGZ

KHM

KNAKOR

LAOLBN

LCALKA

LSOLTU

LUX

LVA

MAR

MDA

MDG

MEX

MKD

MLI

MNG

MOZMRT

MUS

MWI

MYS

NAM

NER

NGA

NICNLD

NOR

NPL

NZL

OMN

PAK

PAN

PER

PHL

PNG

POL

PRY

ROM

RUS RWASAU

SDNSEN

SLB

SLE

SLV

SVKSVN

SWE

SWZ

TCD

TGO

THA

TJKTKM

TON

TTO

TUNTUR

TZA

UGA

UKR

URY USA

UZBVCT

VEN

VNM

VUTWSM

YEMZAFZAR

ZMB

ZWE

4060

8010

0Im

mun

izat

ion D

PT

1000 2000 3000 4000Orthogonalized Public Expditure on Health

Data Source: World Bank WDI

Immunization DPT vs Health Expenditure

AGO

ALB

ARG ARM

ATG

AUSAUT

AZE

BDI

BEN

BFA

BGD

BGR

BHRBHS BLR

BLZBOLBRA

BRB

BWA

CAF

CAN

CHE

CHL

CHN

CIV

CMRCOG

COL

COM

CPV

CRI

CYP CZE

DEU

DJI

DMA

DNK

DOM

DZA

ECU

EGYERI

ESP

EST

ETH

FINFJI FRA

GAB

GBR

GEO GHA

GIN

GMB

GNB

GRC

GRD

GTM

GUYHNDHRV

HTI

HUN

IDNIND

IRN

ISL

ITA

JAM

JORKAZ

KEN

KGZ

KHM

KNAKOR

LAOLBN

LCALKA

LSOLTU

LUX

LVA

MAR

MDA

MDG

MEX

MKD

MLI

MNG

MOZMRT

MUS

MWI

MYS

NAM

NER

NGA

NICNLD

NOR

NPL

NZL

OMN

PAK

PAN

PER

PHL

PNG

POL

PRY

ROM

RUS RWASAU

SDNSEN

SLB

SLE

SLV

SVKSVN

SWE

SWZ

TCD

TGO

THA

TJKTKM

TON

TTO

TUNTUR

TZA

UGA

UKR

URY USA

UZBVCT

VEN

VNM

VUTWSM

YEMZAFZAR

ZMB

ZWE

4060

80100

Imm

uniz

atio

n D

PT

1000 2000 3000 4000Orthogonalized Public Expditure on Health

Data Source: World Bank WDI

Immunization DPT vs Health Expenditure

(b.1) (b.2)

AGO

ALB

ARG

ARMATG

AUS

AUT

AZE BDI

BEN

BFA

BGD

BGR

BHR

BHS

BLRBLZ

BOL

BRA

BRB

BWA

CAF

CANCHECHL

CHN

CIV

CMRCOG

COL

COM

CPV

CRICYP

CZEDEU

DJI

DMA

DNKDOM

DZAECU

EGY ERIESP

EST

ETH

FIN

FJI

FRA

GAB

GBRGEO

GHA

GIN

GMB

GNB

GRC

GRD

GTM

GUY

HND

HRV

HTI

HUN

IDN

IND

IRN

ISL

ITAJAM

JORKAZ

KEN

KGZ

KHM

KNAKOR

LAO

LBN

LCALKA

LSO

LTU

LUX

LVA

MAR

MDA

MDG

MEX MKD

MLI

MNG

MOZ

MRT

MUS

MWI

MYS

NAM

NER

NGA

NIC

NLD

NOR

NPL

NZL

OMN

PAK

PAN

PER

PHL

PNG

POL

PRYROM

RUS

RWA

SAU

SDN

SEN

SLB

SLE

SLV

SVK

SVN

SWE

SWZ

TCD

TGO

THA

TJK

TKM

TON

TTO

TUNTURTZA

UGA

UKR

URY

USA

UZBVCT

VEN

VNM

VUT

WSMYEM

ZAF

ZAR

ZMB

ZWE

5060

7080

9010

0Im

mun

izatio

n M

easl

es

1000 2000 3000 4000Orthogonalized Public Expditure on Health

Data Source: World Bank WDI

Immunization Measles vs Health Expenditure

AGO

ALB

ARG

ARMATG

AUS

AUT

AZE BDI

BEN

BFA

BGD

BGR

BHR

BHS

BLRBLZ

BOL

BRA

BRB

BWA

CAF

CANCHECHL

CHN

CIV

CMRCOG

COL

COM

CPV

CRICYP

CZEDEU

DJI

DMA

DNKDOM

DZAECU

EGY ERIESP

EST

ETH

FIN

FJI

FRA

GAB

GBRGEO

GHA

GIN

GMB

GNB

GRC

GRD

GTM

GUY

HND

HRV

HTI

HUN

IDN

IND

IRN

ISL

ITAJAM

JORKAZ

KEN

KGZ

KHM

KNAKOR

LAO

LBN

LCALKA

LSO

LTU

LUX

LVA

MAR

MDA

MDG

MEX MKD

MLI

MNG

MOZ

MRT

MUS

MWI

MYS

NAM

NER

NGA

NIC

NLD

NOR

NPL

NZL

OMN

PAK

PAN

PER

PHL

PNG

POL

PRYROM

RUS

RWA

SAU

SDN

SEN

SLB

SLE

SLV

SVK

SVN

SWE

SWZ

TCD

TGO

THA

TJK

TKM

TON

TTO

TUNTURTZA

UGA

UKR

URY

USA

UZBVCT

VEN

VNM

VUT

WSMYEM

ZAF

ZAR

ZMB

ZWE

5060

7080

9010

0Im

muni

zatio

n M

easl

es

1000 2000 3000 4000Orthogonalized Public Expditure on Health

Data Source: World Bank WDI

Immunization Measles vs Health Expenditure

(c.1) (c.2)

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88

Table B.1. Spearman rank-correlation on input efficiency rankings (DEA)

Note 1. Figures are correlation coefficients from Spearman test, number of observations are in parentheses. 2. ***0.01 significance level, ** 0.05 significance level, *0.10 significance level, and insignificant otherwise

 PISA 

Science 

Second Level 

Complete 

Average year of School 

Gross Secondary Enrollment 

Net Secondary Enrollment 

Gross Primary 

Enrollment 

Net Primary 

Enrollment 

DALE  

Free Tuberculosis 

 

Infant Survival Rate  

Maternal Survival Rate  

PISA Science 

1.000 (55) 

0.72*** (51) 

0.80*** (51) 

0.74*** (44) 

0.76*** (52) 

0.63*** (55) 

0.78*** (52) 

0.19 (55) 

0.37*** (55) 

0.34** (55) 

‐0.18 (55) 

Second Level Complete 

1.000 (113) 

0.97*** (113) 

0.96*** (87) 

0.95*** (106) 

0.80*** (110) 

0.85*** (105) 

0.23** (113) 

0.28*** (106) 

0.32*** (113) 

0.23** 

Average year of School 

  1.000 (113) 

0.95*** (87) 

0.95*** (106) 

0.75*** (110) 

0.87*** (105) 

0.28*** (113) 

0.30*** (106) 

0.36*** (113) 

0.17* (113) 

Gross Secondary Enrollment 

    1.000 (103) 

0.96*** (103) 

0.75*** (101) 

0.88*** (100) 

0.33*** (102) 

0.27*** (93) 

0.39*** (103) 

0.35*** (101) 

Net Secondary Enrollment 

      1.000 (128) 

0.73*** (126) 

0.87*** (119) 

0.40*** (127) 

0.34*** (111) 

0.45*** (128) 

0.32*** (126) 

Gross Primary Enrollment 

        1.000 (133) 

0.74*** (126) 

0.08 (132) 

0.09 (116) 

0.14 (133) 

0.13 (131) 

Net Primary Enrollment 

          1.000 (126) 

0.50*** (125) 

0.41*** (111) 

0.50*** (133) 

037*** 124) 

DALE  

            1.000 (151) 

0.78*** (126) 

0.88*** (151) 

0.56*** (148) 

Free Tuberculosis  

              1.000 (126) 

0.79*** (126) 

0.55*** (148) 

Infant Survival Rate  

                1.000 (152) 

0.62*** (148) 

Maternal Survival Rate  

                  1.000 (148) 

Page 91: Efficiency of Public Spending in Education, Health, …...Policy Research Working Paper 8586 Efficiency of Public Spending in Education, Health, and Infrastructure An International

89

Table B.2. Spearman rank-correlation on output efficiency rankings (DEA)

Note

3. Figures are correlation coefficients from Spearman test, number of observations are in parentheses. 4. ***0.01 significance level, ** 0.05 significance level, *0.10 significance level, and insignificant otherwise

 PISA 

Science 

Second Level 

Complete 

Average year of School 

Gross Secondary Enrollment 

Net Secondary Enrollment 

Gross Primary 

Enrollment 

Net Primary 

Enrollment 

DALE  

Free Tuberculosi

s  

Infant Survival Rate  

Maternal Survival Rate  

PISA Science 

1.000 (55) 

0.21 (51) 

0.61*** (51) 

0.76*** (44) 

0.68*** (52) 

‐0.08 (55) 

0.53*** (52) 

0.39*** (55) 

0.43*** (55) 

0.64** (55) 

0.66*** (55) 

Second Level Complete 

1.000 (113) 

0.84*** (113) 

0.71*** (87) 

0.69*** (106) 

‐0.008 (110) 

0.41*** (105) 

0.53*** (113) 

0.50*** (106) 

0.66*** (113) 

0.72*** 

Average year of School 

  1.000 (113) 

0.86*** (87) 

0.86*** (106) 

‐0.04 (110) 

0.55*** (105) 

0.69*** (113) 

0.66*** (106) 

0.85*** (113) 

0.86*** (113) 

Gross Secondary Enrollment 

    1.000 (103) 

0.91*** (103) 

‐0.06 (101) 

0.65*** (100) 

0.73*** (102) 

0.70*** (93) 

0.87*** (103) 

0.89*** (101) 

Net Secondary Enrollment 

      1.000 (128) 

0.0.16* (126) 

0.66*** (119) 

0.81*** (127) 

0.75*** (111) 

0.88*** (128) 

0.88*** (126) 

Gross Primary Enrollment 

        1.000 (133) 

0.38*** (126) 

0.10 (132) 

‐0.007 (116) 

0.08 (133) 

0.05 (131) 

Net Primary Enrollment 

          1.000 (126) 

0.65*** (125) 

0.56*** (111) 

0.67*** (126) 

0.66*** 124) 

DALE  

            1.000 (151) 

0.88*** (126) 

0.90*** (151) 

0.84*** (148) 

Free Tuberculosis  

              1.000 (126) 

0.84*** (126) 

0.82*** (148) 

Infant Survival Rate  

                1.000 (152) 

0.93*** (148) 

Maternal Survival Rate 

                  1.000 (148) 

Page 92: Efficiency of Public Spending in Education, Health, …...Policy Research Working Paper 8586 Efficiency of Public Spending in Education, Health, and Infrastructure An International

90

Table B.3. Spearman rank-correlation on input efficiency rankings (FDH)

Note 5. Figures are correlation coefficients from Spearman test, number of observations are in parentheses. 6. ***0.01 significance level, ** 0.05 significance level, *0.10 significance level, and insignificant otherwise

  PISA Science 

Second Level 

Complete 

Average year of School 

Gross Secondary Enrollment 

Net Secondary Enrollment 

Gross Primary 

Enrollment 

Net Primary 

Enrollment 

DALE  Free Tuberculosis 

 

Infant Survival Rate  

Maternal Survival Rate  

PISA Science 

1.000 (55) 

0.69*** (51) 

0.80*** (51) 

0.69*** (44) 

0.71*** (52) 

0.41*** (55) 

0.76*** (52) 

0.18 (55) 

0.24* (55) 

0.30** (55) 

0.26* (55) 

Second Level Complete 

1.000 (113) 

0.91*** (113) 

0.87*** (87) 

0.80*** (106) 

0.50*** (110) 

0.83*** (105) 

0.19** (113) 

0.16* (106) 

0.26*** (113) 

0.28*** (113) 

Average year of School 

  1.000 (113) 

0.88*** (87) 

0.86*** (106) 

0.44*** (110) 

0.85*** (105) 

0.30*** (113) 

0.24** (106) 

0.40*** (113) 

0.39*** (113) 

Gross Secondary Enrollment 

    1.000 (103) 

0.89*** (103) 

0.43*** (101) 

0.87*** (100) 

0.37*** (102) 

0.19* (93) 

0.40*** (103) 

0.41*** (101) 

Net Secondary Enrollment 

      1.000 (128) 

0.35*** (126) 

0.82*** (119) 

0.47*** (127) 

0.34*** (111) 

0.51*** (128) 

0.47*** (126) 

Gross Primary Enrollment 

        1.000 (133) 

0.50*** (126) 

‐0.05 (132) 

‐0.13 (116) 

‐0.11 (133) 

‐0.13 (131) 

Net Primary Enrollment 

          1.000 (126) 

0.49*** (125) 

0.32*** (111) 

0.49*** (133) 

0.46*** 124) 

DALE  

            1.000 (151) 

0.75*** (126) 

0.86*** (151) 

0.81*** (148) 

Free Tuberculosis  

              1.000 (126) 

0.80*** (126) 

0.73*** (148) 

Infant Survival Rate  

                1.000 (152) 

0.93*** (148) 

Maternal Survival Rate 

                  1.000 (148) 

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91

Table B.4. Spearman rank-correlation on output efficiency rankings (FDH)

Note

Figures are correlation coefficients from Spearman test, number of observations are in parentheses. ***0.01 significance level, ** 0.05 significance level, *0.10 significance level, and insignificant otherwise

  PISA Science 

Second Level 

Complete 

Average year of School 

Gross Secondary Enrollment 

Net Secondary Enrollment 

Gross Primary 

Enrollment 

Net Primary 

Enrollment 

DALE  

Free Tuberculos

is  

Infant Survival Rate  

Maternal Survival Rate  

PISA Science 

1.000 (55) 

0.20 (51) 

0.63*** (51) 

0.70*** (44) 

0.64*** (52) 

‐0.04 (55) 

0.47*** (52) 

0.34** (55) 

0.43*** (55) 

0.63** (55) 

0.64*** (55) 

Second Level Complete 

1.000 (113) 

0.84*** (113) 

0.72*** (87) 

0.70*** (106) 

0.10 (110) 

0.41*** (105) 

0.52*** (113) 

0.50*** (106) 

0.67*** (113) 

0.72*** (113) 

Average year of School 

  1.000 (113) 

0.87*** (87) 

0.86*** (106) 

0.06 (110) 

0.57*** (105) 

0.68*** (113) 

0.65*** (106) 

0.85*** (113) 

0.86*** (113) 

Gross Secondary Enrollment 

    1.000 (103) 

0.90*** (103) 

0.03 (101) 

0.66*** (100) 

0.72*** (102) 

0.70*** (93) 

0.87*** (103) 

0.89*** (101) 

Net Secondary Enrollment 

      1.000 (128) 

0.20*** (126) 

0.68*** (119) 

0.79*** (127) 

0.74*** (111) 

0.86*** (128) 

0.88*** (126) 

Gross Primary Enrollment 

        1.000 (133) 

0.37*** (126) 

0.19** (132) 

0.00 (116) 

0.11 (133) 

0.11 (131) 

Net Primary Enrollment 

          1.000 (126) 

0.65*** (125) 

0.56*** (111) 

0.67*** (133) 

0.67*** 124) 

DALE              1.000 (151) 

0.87*** (126) 

0.88*** (151) 

0.83*** (148) 

Free Tuberculosis  

              1.000 (126) 

0.84*** (126) 

0.82*** (148) 

Infant Survival Rate  

                1.000 (152) 

0.93*** (148) 

Maternal Survival Rate 

                  1.000 (148)