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Decentralization And Public Procurement Performance: New Evidence From Italy

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  • Olga Chiappinelli

Abstract

We exploit a new dataset based on European Union (EU) procurement award notices to investigate the relationship between the degree of centralization of public procurement and its performance. We focus on the case of Italy, where all levels of government, along with a number of other public institutions, are involved in procurement and are subject to the same EU regulation. We find that (a) municipalities and utilities, which currently award among the largest shares of contracts, achieve lower rebates than other institutional categories; and (b) decentralization implies lower rebates only when it comes with weak competences of procurement officials. The evidence seems to suggest that a reorganization of the procurement system, both in terms of partial centralization and increased professionalization of procurement officials, would help improve award‐stage procurement performance. (JEL H11, H57, H71, H77)

Suggested Citation

  • Olga Chiappinelli, 2020. "Decentralization And Public Procurement Performance: New Evidence From Italy," Economic Inquiry, Western Economic Association International, vol. 58(2), pages 856-880, April.
    • Handle: RePEc:bla:ecinqu:v:58:y:2020:i:2:p:856-880
    DOI: 10.1111/ecin.12871
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    Cited by:

    1. Essau Banda & Dr. Ethel Tembo Mwanaumo, 2026. "Assessing the Effectiveness of Electronic Government Procurement (E-GP) On Organizational Performance in Water Utilities in Zambia: A Case of Lusaka Water Supply and Sanitation Company Limited," African Journal of Commercial Studies, African Journal of Commercial Studies, vol. 7(1).
    2. Chiappinelli, Olga & Giuffrida, Leonardo M. & Spagnolo, Giancarlo, 2025. "Public procurement as an innovation policy: Where do we stand?," International Journal of Industrial Organization, Elsevier, vol. 100(C).
    3. Caserta, Maurizio & Ferrante, Livio & Ferrara, Paolo Lorenzo & Fontana, Stefania, 2025. "Too big to be efficient? The role of size in public procurement performance," Economic Analysis and Policy, Elsevier, vol. 86(C), pages 2049-2069.
    4. Agnese Bafundi & Antonio Sparacino, 2023. "Public procurement centralization and energy expenditures: the case of Italian municipalities," Questioni di Economia e Finanza (Occasional Papers) 826, Bank of Italy, Economic Research and International Relations Area.
    5. de Leverano, Adriano & Baulia, Susmita, 2023. "A new indicator to implement effective spending review policies in the public procurement for standardized goods," ZEW Discussion Papers 23-063, ZEW - Leibniz Centre for European Economic Research.
    6. A. Baltrunaite & T. Orlando & G. Rovigatti, 2024. "The Making of Public Works in Italy: Institutional Features and Regional Characteristics," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 10(3), pages 1195-1232, November.
    7. Clarissa Lotti & Giancarlo Spagnolo, 2022. "Indirect Savings from Public Procurement Centralization," CEIS Research Paper 532, Tor Vergata University, CEIS, revised 01 Feb 2022.
    8. Audinga Baltrunaite & Tommaso Orlando & Gabriele Rovigatti, 2021. "The implementation of public works in Italy: institutional features and regional characteristics," Questioni di Economia e Finanza (Occasional Papers) 659, Bank of Italy, Economic Research and International Relations Area.
    9. Carla Carlucci & Cristina Giorgiantonio & Tommaso Orlando, 2019. "Public works in Italy: time to completion and its determinants," Questioni di Economia e Finanza (Occasional Papers) 538, Bank of Italy, Economic Research and International Relations Area.
    10. Juhász, Péter & Tátrai, Tünde, 2024. "A közbeszerzés piaci fejlettségének és hatékonyságának megítélése Magyarországon [Assessing the development and efficiency of public procurement in Hungary]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 444-463.
    11. Paradzai Munyede & Jephias Mapuva, 2020. "Exploring Public Procurement Reforms in Rural Local Authorities in Zimbabwe," Journal of Public Administration and Governance, Macrothink Institute, vol. 10(1), pages 116-116, December.
    12. Giampaolo Arachi & Debora Assisi & Berardino Cesi & Michele G. Giuranno & Felice Russo, 2024. "Intermunicipal cooperation in public procurement," Regional Studies, Taylor & Francis Journals, vol. 58(11), pages 2055-2073, November.

    More about this item

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism

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