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Using International Institutions to Improve Public Procurement

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Hoekman, Bernard

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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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Article provided by Oxford University Press 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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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  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. [Downloadable!] (restricted)
  2. 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.
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  3. 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. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. Andrei Shleifer & Robert W. Vishny, 1993. "Corruption," NBER Working Papers 4372, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September. [Downloadable!] (restricted)
  7. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August. [Downloadable!] (restricted)
  8. Laffont, Jean-Jacques & Tirole, Jean, 1991. "Auction design and favoritism," International Journal of Industrial Organization, Elsevier, vol. 9(1), pages 9-42, March. [Downloadable!] (restricted)
  9. Alam, M S, 1995. "A Theory of Limits on Corruption and Some Applications," Kyklos, Blackwell Publishing, vol. 48(3), pages 419-35.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Evenett, Simon J. & Hoekman, Bernard M., 2005. "International cooperation and the reform of public procurement policies," Policy Research Working Paper Series 3720, The World Bank. [Downloadable!]
    Other versions:
  2. Jack Diamond, 2002. "The Micro Basis of Budget System Reform: The Case of Transitional Economies," IMF Working Papers 02/105, International Monetary Fund. [Downloadable!]
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