Industrial Specialisation and Public Procurement: Theory and Empirical Evidence
AbstractPublic-sector purchases from private firms account for over 10 percent of GDP in most developed countries, and they are typically biased in favour of domestic suppliers. This paper explores the impact of discriminatory public procurement on the location of industries. Our main theoretical finding is that, in a setting with increasing returns and trade costs, home-biased procurement can override other determinants of industrial specialisation. Our empirical analysis underscores the significance of discriminatory procurement. Drawing on a cross-country, crossindustry data sample for the EU, we find that determinants of industry location such as factor endowments, market access and intermediate inputs are significant in sectors where public procurement is small, but they lose their significance in sectors where public procurement is important.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.
Volume (Year): 16 (2001)
Issue (Month): ()
Public Procurement; Industrial Specialisation; European Union;
Other versions of this item:
- Brülhart, Marius & Trionfetti, Federico, 1998. "Industrial Specialisation and Public Procurement: Theory and Empirical Evidence," Economics Technical Papers 983, Trinity College Dublin, Department of Economics.
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
- F15 - International Economics - - Trade - - - Economic Integration
- H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Gianmarco I.P. Ottaviano, 2001.
"Footloose Capital, Market Access, and the Geography of Regional State Aid,"
Development Working Papers
155, Centro Studi Luca d\'Agliano, University of Milano.
- Ottaviano, Gianmarco I. P., 2001. "Footloose capital, market access, and the geography of regional state aid," HWWA Discussion Papers 132, Hamburg Institute of International Economics (HWWA).
- Pierre M. Picard & Dao-Zhi Zeng, 2009.
"A Harmonization of First and Second Natures,"
CREA Discussion Paper Series
09-10, Center for Research in Economic Analysis, University of Luxembourg.
- Marius Brulhart & Federico Trionfetti, 2000.
"Home-Biased Demand and International Specialisation: A Test of Trade Theories,"
Econometric Society World Congress 2000 Contributed Papers
0031, Econometric Society.
- Marius BRÜLHART & Federico TRIONFETTI, 1999. "Home-Biased Demand and International Specialisation : A Test of Trade Theories," Cahiers de Recherches Economiques du DÃ©partement d'EconomÃ©trie et d'Economie politique (DEEP) 9918, Université de Lausanne, Faculté des HEC, DEEP.
- F Trionfetti, 1999. "On the Home Market Effect: Theory and Empirical Evidence," CEP Discussion Papers dp0430, Centre for Economic Performance, LSE.
- Shingal, Anirudh, 2013. ""New" econometric evidence for the Baldwin-Richardson (1972)/Miyagiwa (1991) theoretical predictions in government procurement," MPRA Paper 49138, University Library of Munich, Germany.
- Eric Strobl, 2004. "Trends and Determinants of the Geographic Dispersion of Irish Manufacturing Activity, 1926- 1996," Regional Studies, Taylor and Francis Journals, vol. 38(2), pages 191-205.
- Rolf Weder, 2003. "Comparative home-market advantage: An empirical analysis of British and American exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 139(2), pages 220-247, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jong-Eun Lee).
If references are entirely missing, you can add them using this form.