Public Administration Reforms and Economic Efficiency-A Law and Economics Perspective on Developing and Transition Economies

• Dr. Luis Fernando Morales

  School of Public Policy and Law University of Chile Santiago, Chile

  Author

Public administration reforms are increasingly recognized as a cornerstone of economic efficiency and sustainable development. Inefficient bureaucratic systems, weak legal enforcement, and administrative corruption impose significant costs on economic activity, particularly in developing and transition economies. This paper examines the impact of public administration reforms on economic efficiency through an integrated law and economics framework. Drawing on recent empirical studies and institutional reports from 2023 to 2025, the research analyzes how administrative simplification, legal modernization, and digital governance initiatives influence public sector performance and economic outcomes. The findings demonstrate that reforms improving legal clarity, accountability, and administrative capacity significantly enhance economic efficiency, reduce transaction costs, and promote private sector growth. The paper offers policy recommendations for strengthening administrative institutions in line with economic and legal best practices.

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