Corvinus
Corvinus

New Public Management Reforms: Institutions matter!

Rosta, Miklós (2012) New Public Management Reforms: Institutions matter! Working Paper. Corvinus University of Budapest, Department of Comparative Economics, Budapest. (Unpublished)

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Abstract

New Public Management (NPM) has played a decisive role and has had a radical effect on the productivity and efficiency of the public sector in the Anglo-Saxon countries. However, the effective introduction of the NPM reforms is not an easy task. The scientific community is zealously analyzing the experiences of the developing countries. The stories, they tell, are full of failures, and ineffective reforms. The goal of the current study is to uncover the factors that might influence the successful implementation of the NPM reforms. In our analysis, by relying on the theories of new institutional economics, we developed a model with which we wish to prove that in regards to the success of the reforms the informal and the formal institutions characteristic of the given country are the decisively determining factors. When answering the question, we introduced a new indicator based on public choice theory – the politicians’ interest index – by which we could measure the success of the NPM. We tested our hypothesis by a comparative statistical analysis using the data from 31 countries. Based on our results, we find that informal institutions, the culture shared by the members of society, fundamentally determine the probability of the successful implementation of the NPM reforms, these results having a significant practical relevance.

Item Type:Monograph (Working Paper)
Uncontrolled Keywords:New Public Management, New istitutional economics
JEL classification:H83 - Public Administration; Public Sector Accounting and Audits
Subjects:Public administration
Funders:Hungarian Development Agency
Projects:TÁMOP 4.2.1. B 09/1/KMR-2010.0005 framework-contract
ID Code:1909
Deposited By: Dr. Miklós Rosta
Deposited On:21 Apr 2015 06:44
Last Modified:21 Apr 2015 06:44

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