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"New" econometric evidence for the Baldwin-Richardson (1972)/Miyagiwa (1991) theoretical predictions in government procurement

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  • Shingal, Anirudh

Abstract

Baldwin and Richardson (1972) and Miyagiwa (1991) laid out the conditions under which a home-bias in public procurement is rendered ineffective as a protectionist device. Since then there has been little empirical work on this subject. In this paper, we bridge this gap by building a new dataset from WTO notifications on domestic and foreign purchases by Japanese and Swiss governments at the sector level over 1990-2003 and use it to test the BRM theoretical predictions. Significantly, our empirical results support these theoretical predictions.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 49138.

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Date of creation: 21 Jul 2013
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Handle: RePEc:pra:mprapa:49138

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Keywords: Government procurement; home-bias; Baldwin-Richardson (1972); GPA; Japan; Switzerland;

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  1. Clément Bosquet & Hervé Boulhol, 2010. "Scale-dependence of the Negative Binomial Pseudo-Maximum Likelihood Estimator," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00535594, HAL.
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  3. Brulhart, Marius & Trionfetti, Federico, 2004. "Public expenditure, international specialisation and agglomeration," European Economic Review, Elsevier, Elsevier, vol. 48(4), pages 851-881, August.
  4. Grubel, Herbert G & Lloyd, P J, 1971. "The Empirical Measurement of Intra- Industry Trade," The Economic Record, The Economic Society of Australia, The Economic Society of Australia, vol. 47(120), pages 494-517, December.
  5. Evenett, Simon J. & Hoekman, Bernard M., 2004. "Government procurement : Market access, transparency, and multilateral trade rules," Policy Research Working Paper Series 3195, The World Bank.
  6. Joao Santos Silva & Silvana Tenreyro, 2005. "The log of gravity," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 3744, London School of Economics and Political Science, LSE Library.
  7. Weichenrieder, Alfons J., 2001. "Public procurement in the presence of capital taxation," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 31(2-3), pages 339-353, April.
  8. Brülhart, Marius & Trionfetti, Federico, 1998. "Industrial Specialisation and Public Procurement: Theory and Empirical Evidence," Economics Technical Papers, Trinity College Dublin, Department of Economics 983, Trinity College Dublin, Department of Economics.
  9. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, Elsevier, vol. 48(1), pages 7-35, June.
  10. Miyagiwa, Kaz, 1991. "Oligopoly and Discriminatory Government Procurement Policy," American Economic Review, American Economic Association, American Economic Association, vol. 81(5), pages 1320-28, December.
  11. Evenett, Simon J, 2009. "What Can Be Learned from Crisis-Era Protectionism? An Initial Assessment," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7494, C.E.P.R. Discussion Papers.
  12. Trionfetti, Federico, 2001. "Public Procurement, Market Integration, and Income Inequalities," Review of International Economics, Wiley Blackwell, vol. 9(1), pages 29-41, February.
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