Rajkumar, Andrew SunilSwaroop, Vinaya2013-06-272013-06-272002-05https://hdl.handle.net/10986/14248The authors examine the role of governance-measured by level of corruption and quality of bureaucracy-and ask how it affects the relationship between public spending and outcomes. Their main innovation is to see if differences in efficacy of public spending can be explained by quality of governance. The authors find that public health spending lowers child and infant mortality rates in countries with good governance. The results also indicate that as countries improve their governance, public spending on primary education becomes effective in increasing primary education attainment. These findings have important implications for enhancing the development effectiveness of public spending. The lessons are particularly relevant for developing countries, where public spending on education and health is relatively low, and the state of governance is often poor.en-USCC BY 3.0 IGOACCOUNTABILITYAGEDALLOCATING PUBLIC RESOURCESBUDGET MANAGEMENTBUDGETARY ALLOCATIONBUREAUCRACYBUREAUCRATIC QUALITYCITIZENSCIVIL SOCIETYCORRUPTIONCOUNTRY DATACROWDINGDEBTDEVELOPMENT INDICATORSECONOMIC GROWTHEDUCATIONAL ATTAINMENTEXECUTIONEXPENDITURESFINANCIAL MANAGEMENTFOREIGN AIDFOREIGN DIRECT INVESTMENTGOOD GOVERNANCEGOVERNANCE INDICATORGOVERNANCE INDICATORSGOVERNANCE VARIABLESGOVERNMENT EFFECTIVENESSGOVERNMENT INTERVENTIONSGROSS DOMESTIC PRODUCTHEALTH OUTCOMESHEALTH SECTORHEALTH SPENDINGHEALTH STATUSHUMAN RESOURCESINCOMEINCOME DISTRIBUTIONINEQUALITYINFANT MORTALITYINNOVATIONINSTITUTIONAL CAPACITYINSTITUTIONAL INEFFICIENCIESINSTITUTIONAL VARIABLESLEGISLATURELIFE EXPECTANCYLITERACY RATESMORTALITYMOTIVATIONPARENTSPER CAPITA INCOMEPOLICY RESEARCHPOLITICAL RISKPOLITICAL STABILITYPOLITICAL SYSTEMPRIMARY EDUCATIONPRIMARY HEALTH CAREPRIMARY SCHOOLPRIMARY SCHOOLSPRIVATE SECTORPUBLIC AFFAIRSPUBLIC EXPENDITUREPUBLIC EXPENDITURE MANAGEMENTPUBLIC FUNDSPUBLIC HEALTHPUBLIC INSTITUTIONSPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC POLICYPUBLIC RESOURCESPUBLIC SECTORPUBLIC SPENDINGPURCHASING POWERPURCHASING POWER PARITYREGULATORY BURDENREVERSE CAUSATIONRULE OF LAWSERVICE DELIVERYSOCIAL INFRASTRUCTURESOCIAL OUTCOMESURBAN AREASURBANIZATIONVIOLENCE PUBLIC SPENDINGGOVERNMENT SPENDING POLICYPUBLIC EXPENDITURESGOVERNANCECORRUPTION IN POLITICSBUREAUCRACY & CORRUPT PRACTICESHEALTH EXPENDITURESPRIMARY EDUCATIONEFFECTIVENESSWorld Bank10.1596/1813-9450-2840