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Using International Institutions to Improve Public Procurement

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  • Hoekman, Bernard

Abstract

The World Trade Organization's voluntary rules on government procurement are a useful mechanism for ensuring that public procurement procedures are efficient. They also provide an opportunity to reduce the uncertainty of participants by increasing transparency and accountability. Yet most developing countries have chosen not to subject their procurement policies to international disciplines and multilateral surveillance. Their reasons may include an unfamiliarity with the government procurement agreement (GPA); a perception that the potential payoffs are small; a desire to discriminate in favor of domestic firms; or the successful opposition of groups that benefit from the current regimes. Although the economic rationales for abstaining from the GPA are not compelling, a quid pro quo for accession may be needed to overcome opposition by special interests. Developing country procurement markets are large enough that governments may be able to make accession to the GPA conditional on temporary exceptions to multilateral disciplines or on better access to export markets. Copyright 1998 by Oxford University Press.

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Bibliographic Info

Article provided by World Bank Group in its journal World Bank Research Observer.

Volume (Year): 13 (1998)
Issue (Month): 2 (August)
Pages: 249-69

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Handle: RePEc:oup:wbrobs:v:13:y:1998:i:2:p:249-69

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  1. McAfee, R. Preston & McMillan, John, 1989. "Government procurement and international trade," Journal of International Economics, Elsevier, vol. 26(3-4), pages 291-308, May.
  2. Alam, M S, 1995. "A Theory of Limits on Corruption and Some Applications," Kyklos, Wiley Blackwell, vol. 48(3), pages 419-35.
  3. BRETON, Albert & SALMON, Pierre, 1995. "Are discriminatory procurement policies motivated by protectionism ?," LATEC - Document de travail - Economie (1991-2003) 1995-10, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
  4. Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
  5. Domberger, Simon & Hall, Christine & Li, Eric Ah Lik, 1995. "The Determinants of Price and Quality in Competitively Tendered Contracts," Economic Journal, Royal Economic Society, vol. 105(433), pages 1454-70, November.
  6. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August.
  7. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1993. "Why Is Rent-Seeking So Costly to Growth?," American Economic Review, American Economic Association, vol. 83(2), pages 409-14, May.
  8. Laffont, Jean-Jacques & Tirole, Jean, 1991. "Auction design and favoritism," International Journal of Industrial Organization, Elsevier, vol. 9(1), pages 9-42, March.
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Cited by:
  1. Auriol, E., 1998. "Corruption in Procurement and Public Purchase," G.R.E.Q.A.M. 98a29, Universite Aix-Marseille III.
  2. Evenett, Simon J & Hoekman, Bernard, 2004. "International Cooperation and the Reform of Public Procurement Policies," CEPR Discussion Papers 4663, C.E.P.R. Discussion Papers.
  3. Jack Diamond, 2002. "The Micro Basis of Budget System Reform," IMF Working Papers 02/105, International Monetary Fund.
  4. Dong-Hun Kim, 2010. "Intra-industry trade and protectionism: the case of the buy national policy," Public Choice, Springer, vol. 143(1), pages 49-65, April.

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