Press freedom and government spending efficiency
摘要
We examine the effect of media freedom on public expenditure efficiency using a panel of 134 advanced and developing countries from 1994 to 2016. Our findings provide robust evidence that greater media freedom significantly enhances government spending efficiency. This effect is more pronounced in countries with higher levels of democracy, per capita income, human capital, internet access, and strong fiscal rules. Furthermore, we show that media freedom primarily influences efficiency through reduced corruption, increased transparency and accountability in the public sector, and stronger electoral competition. These results underscore the vital role of media freedom in fostering good governance and efficient public resource allocation, particularly in a context where press freedom is declining and fiscal constraints are tightening.