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Determinants of direct cross-border public procurement in EU Member States

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Abstract

The aim of this paper is to analyse the determinants of direct cross-border public procurement in the EU Member States. For this purpose, we use a unique dataset based on obligatory data published on TED (Tenders Electronic Daily) which covers public procurement contract award notices for the period 2008-2012 and consists of more than 30 variables. Among others, results of the econometric estimation suggest that the probability of awarding a contract cross-border depends positively on the value of the contract awarded and negatively on the number of offers. Among awarding country characteristics, GDP per capita and euro-area membership are found to positively impact the probability of a cross-border award, while population and the share of government expenditure in total GDP have a negative influence. Barriers to trade (a proxy of tariff and non-tariff barriers) are shown to have a significant negative impact on cross-border awards while investment freedom (a proxy of openness to FDI) is found to have a positive effect on the probability of a cross-border win.

Suggested Citation

  • Kutlina-Dimitrova, Zornitsa & Lakatos, Csilla, 2014. "Determinants of direct cross-border public procurement in EU Member States," DG TRADE Chief Economist Notes 2014-2, Directorate General for Trade, European Commission.
    • Handle: RePEc:ris:dgtcen:2014_002
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    Cited by:

    1. Mulabdic, Alen & Rotunno, Lorenzo, 2022. "Trade barriers in government procurement," European Economic Review, Elsevier, vol. 148(C).
    2. Sanfilippo, Marco, 2018. "Firm performance and participation in public procurement: Evidence from Sub-Saharan Africa," CEPR Discussion Papers 12752, C.E.P.R. Discussion Papers.
    3. Kutlina-Dimitrova, Zornitsa, 2017. "Can we put a price on extending the scope of the GPA? First quantitative assessment," DG TRADE Chief Economist Notes 2017-1, Directorate General for Trade, European Commission.
    4. Chiara Carboni & Elisabetta Iossa & Gianpiero Mattera, 2018. "Barriers towards foreign firms in international public procurement markets: a review," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 45(1), pages 85-107, March.
    5. Bernard Hoekman & Marco Sanfilippo, 2020. "Foreign participation in public procurement and firm performance: evidence from sub-Saharan Africa," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 156(1), pages 41-73, February.
    6. Bedri Kamil Onur Tas, 2019. "Bunching Below Thresholds to Manipulate Public Procurement," RSCAS Working Papers 2019/17, European University Institute.
    7. Chiara Carboni & Elisabetta Iossa & Gianpiero Mattera, 2017. "Barriers to Public Procurement: A Review and Recent Patterns in the EU," IEFE Working Papers 92, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    8. Bernard Hoekman, 2015. "International Cooperation on Public Procurement Regulation," RSCAS Working Papers 2015/88, European University Institute.
    9. Dengler, Benedikt, 2018. "The WTO Government Procurement Agreement as a Commitment Device: A First Appraisal," CEPR Discussion Papers 13266, C.E.P.R. Discussion Papers.

    More about this item

    Keywords

    EU Member States; public procurement; international competition; econometric analysis;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement

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