Crossing chasms: A PLS approach to EU public sector performance assessment

Area of Science:

• Public Administration
• Econometrics
• Comparative Politics

Background:

• Public sector performance is crucial for EU economic and social well-being.
• Existing evaluations often lack a holistic, multidimensional approach.
• Assessing performance across diverse EU countries requires a robust methodological framework.

Purpose of the Study:

• To introduce and apply the European Public Sector Performance Index (EPPSI).
• To evaluate public sector performance in EU countries from 2007 to 2021.
• To identify key determinants of public sector efficiency across governance, social, and economic dimensions.

Main Methods:

• Utilized Partial Least Squares (PLS) econometric modeling.
• Employed cluster analysis for performance grouping.
• Analyzed secondary data from 2007 to 2021 across EU countries.

Main Results:

• Governance factors (Control of Corruption, Rule of Law, Government Effectiveness) significantly impact performance.
• Economic stability (Inflation) and social equity (healthcare access, education spending) are critical determinants.
• The EPPSI provides a novel, holistic measure integrating digitalization and well-being.

Conclusions:

• Transparent governance, economic stability, and equitable social policies are essential for improving EU public sector performance.
• The EPPSI offers methodological insights and empirical evidence for policymakers.
• Future research should consider broader societal factors for a more comprehensive analysis of digital transformation and governance.