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The Role of Information Transparency in Public Procurement: the Example of Russian Regions

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Author Info

  • Balsevich, A.

    (CInSt HSE, Moscow, Russia)

  • Pivovarova, S.

    (CInSt HSE, Moscow, Russia)

  • Podkolzina, E.

    (CInSt HSE, Moscow, Russia)

Abstract

It is an open question whether a more transparent public procurement leads to the more efficient outcomes. In the paper we show how transparency of the public procurement in the Russian regions is correlated with key factors that influence the outcomes of procurement procedures - competition, corruption, and control. Using the open information we evaluate availability and usability of different types of information presented on regional procurement websites by constructing a number of indices. Our empirical study shows that the transparency of information is significantly and negatively correlated with the level of corruption in the region and increases the utilization of control mechanisms. We also show that the more transparent systems are associated with the higher levels of competition.

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Bibliographic Info

Article provided by New Economic Association in its journal Journal of the New Economic Association.

Volume (Year): 15 (2012)
Issue (Month): 3 ()
Pages: 82-112

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Handle: RePEc:nea:journl:y:2012:i:15:p:82-112

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Related research

Keywords: public procurement; information transparency; corruption;

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References

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  1. Mehmet Bac, 2001. "Corruption, Connections and Transparency: Does a Better Screen Imply a Better Scene?," Public Choice, Springer, vol. 107(1), pages 87-96, April.
  2. Ariane Lambert-Mogiliansky & Konstantin Sonin, 2003. "Corruption and Collusion in Procurement Tenders," Working Papers w0036, Center for Economic and Financial Research (CEFIR).
  3. Hiroshi Ohashi, 2008. "Effects of Transparency in Procurement Practices on Government Expenditure: A Case Study of Municipal Public Works," CIRJE F-Series CIRJE-F-548, CIRJE, Faculty of Economics, University of Tokyo.
  4. Kolstad, Ivar & Wiig, Arne, 2009. "Is Transparency the Key to Reducing Corruption in Resource-Rich Countries?," World Development, Elsevier, vol. 37(3), pages 521-532, March.
  5. Frédéric Boehm & Juanita Olaya, 2006. "Corruption In Public Contracting Auctions: The Role Of Transparency In Bidding Processes," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 77(4), pages 431-452, December.
  6. von Furstenberg, George M., 2001. "Hopes and delusions of transparency1," The North American Journal of Economics and Finance, Elsevier, vol. 12(1), pages 105-120, March.
  7. Amaral, Miguel & Saussier, Stéphane & Yvrande-Billon, Anne, 2009. "Auction procedures and competition in public services: The case of urban public transport in France and London," Utilities Policy, Elsevier, vol. 17(2), pages 166-175, June.
  8. Esther Gal-Or & Mordechai Gal-Or & Anthony Dukes, 2007. "Optimal information revelation in procurement schemes," RAND Journal of Economics, RAND Corporation, vol. 38(2), pages 400-418, 06.
  9. Kevin Zhu, 2004. "Information Transparency of Business-to-Business Electronic Markets: A Game-Theoretic Analysis," Management Science, INFORMS, vol. 50(5), pages 670-685, May.
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