IDEAS home Printed from https://ideas.repec.org/a/bla/worlde/v45y2022i2p409-429.html
   My bibliography  Save this article

COVID‐19, public procurement regimes and trade policy

Author

Listed:
  • Bernard Hoekman
  • Anirudh Shingal
  • Varun Eknath
  • Viktoriya Ereshchenko

Abstract

This paper analyses a prominent dimension of the initial policy response to the COVID‐19 pandemic observed in many countries: the imposition of export restrictions and actions to facilitate imports. Using weekly data on the use of trade policy instruments during the first seven months of the COVID‐19 pandemic (January–July, 2020), we assess the relationship between the use of trade policy instruments and attributes of pre‐crisis public procurement regulation. Controlling for country size, government effectiveness and economic factors, we find that use of export restrictions targeting medical products is strongly positively correlated with the total number of steps and average time required to complete procurement processes in the pre‐crisis period. Membership of trade agreements encompassing public procurement disciplines is associated with actions to facilitate trade in medical products. These findings suggest future empirical assessments of the drivers of trade policy during the pandemic should consider public procurement systems.

Suggested Citation

  • Bernard Hoekman & Anirudh Shingal & Varun Eknath & Viktoriya Ereshchenko, 2022. "COVID‐19, public procurement regimes and trade policy," The World Economy, Wiley Blackwell, vol. 45(2), pages 409-429, February.
    • Handle: RePEc:bla:worlde:v:45:y:2022:i:2:p:409-429
    DOI: 10.1111/twec.13118
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/twec.13118
    Download Restriction: no
    File URL: https://libkey.io/10.1111/twec.13118?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Simon Evenett & Matteo Fiorini & Johannes Fritz & Bernard Hoekman & Piotr Lukaszuk & Nadia Rocha & Michele Ruta & Filippo Santi & Anirudh Shingal, 2022. "Trade policy responses to the COVID‐19 pandemic crisis: Evidence from a new data set," The World Economy, Wiley Blackwell, vol. 45(2), pages 342-364, February.
    2. Head, Keith & Mayer, Thierry & Ries, John, 2010. "The erosion of colonial trade linkages after independence," Journal of International Economics, Elsevier, vol. 81(1), pages 1-14, May.
    3. Tas, Bedri Kamil Onur, 2020. "SME Participation in Public Purchasing: Procurement Policy Matters," CEPR Discussion Papers 14836, C.E.P.R. Discussion Papers.
    4. Fernando Leibovici & Ana Maria Santacreu, 2020. "Shortages of Critical Goods in a Global Economy: Optimal Trade and Industrial Policy," Working Papers 2020-010, Federal Reserve Bank of St. Louis, revised Dec 2023.
    5. Bernard Hoekman & Anirudh Shingal & Varun Eknath & Viktoriya Ereshchenko, 2022. "COVID‐19, public procurement regimes and trade policy," The World Economy, Wiley Blackwell, vol. 45(2), pages 409-429, February.
    6. J. M. C. Santos Silva & Silvana Tenreyro, 2006. "The Log of Gravity," The Review of Economics and Statistics, MIT Press, vol. 88(4), pages 641-658, November.
    7. Fernando Leibovici & Ana Maria Santacreu, 2020. "International Trade Policy During COVID-19," Economic Synopses, Federal Reserve Bank of St. Louis, issue 35, June.
    8. Simon J. Evenett, 2020. "Sicken thy neighbour: The initial trade policy response to COVID‐19," The World Economy, Wiley Blackwell, vol. 43(4), pages 828-839, April.
    9. Anirudh Shingal, 2015. "Econometric Analyses of Home Bias in Government Procurement," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 188-219, February.
    10. Gary Gereffi, 2020. "What does the COVID-19 pandemic teach us about global value chains? The case of medical supplies," Journal of International Business Policy, Palgrave Macmillan, vol. 3(3), pages 287-301, September.
    11. 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.
    12. World Bank, 2020. "Doing Business 2020," World Bank Publications - Books, The World Bank Group, number 32436, December.
    13. Gary Gereffi, 0. "What does the COVID-19 pandemic teach us about global value chains? The case of medical supplies," Journal of International Business Policy, Palgrave Macmillan, vol. 0, pages 1-15.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Evenett,Simon J. & Hoekman,Bernard M. & Rocha,Nadia & Ruta,Michele, 2021. "The Covid-19 Vaccine Production Club : Will Value Chains Temper Nationalism?," Policy Research Working Paper Series 9565, The World Bank.
    2. Bernard Hoekman & Anirudh Shingal & Varun Eknath & Viktoriya Ereshchenko, 2022. "COVID‐19, public procurement regimes and trade policy," The World Economy, Wiley Blackwell, vol. 45(2), pages 409-429, February.
    3. Colbert, Stephanie & Wilkinson, Claire & Thornton, Louise & Feng, Xiaoqi & Richmond, Robyn, 2021. "Online alcohol sales and home delivery: An international policy review and systematic literature review," Health Policy, Elsevier, vol. 125(9), pages 1222-1237.
    4. Simon Evenett & Matteo Fiorini & Johannes Fritz & Bernard Hoekman & Piotr Lukaszuk & Nadia Rocha & Michele Ruta & Filippo Santi & Anirudh Shingal, 2022. "Trade policy responses to the COVID‐19 pandemic crisis: Evidence from a new data set," The World Economy, Wiley Blackwell, vol. 45(2), pages 342-364, February.
    5. Nathapornpan Piyaareekul Uttama, 2023. "Revisiting the Impacts of COVID-19 Government Policies and Trade Measures on Trade Flows: A Focus on RCEP Nations," Working Papers DP-2023-17, Economic Research Institute for ASEAN and East Asia (ERIA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Evenett,Simon J. & Hoekman,Bernard M. & Rocha,Nadia & Ruta,Michele, 2021. "The Covid-19 Vaccine Production Club : Will Value Chains Temper Nationalism?," Policy Research Working Paper Series 9565, The World Bank.
    2. Simon Evenett & Matteo Fiorini & Johannes Fritz & Bernard Hoekman & Piotr Lukaszuk & Nadia Rocha & Michele Ruta & Filippo Santi & Anirudh Shingal, 2022. "Trade policy responses to the COVID‐19 pandemic crisis: Evidence from a new data set," The World Economy, Wiley Blackwell, vol. 45(2), pages 342-364, February.
    3. Mariya Aleksynska & Giovanni Peri, 2014. "Isolating the Network Effect of Immigrants on Trade," The World Economy, Wiley Blackwell, vol. 37(3), pages 434-455, March.
    4. Anthony Briant & Pierre-Philippe Combes & Miren Lafourcade, 2014. "Product Complexity, Quality of Institutions and the Protrade Effect of Immigrants," The World Economy, Wiley Blackwell, vol. 37(1), pages 63-85, January.
    5. Laurent Didier, 2017. "South-South Trade and Geographical Diversification of Intra-SSA Trade: Evidence from BRICs," African Development Review, African Development Bank, vol. 29(2), pages 139-154, June.
    6. Foellmi, Reto & Hepenstrick, Christian & Torun, David, 2022. "Triangle Inequalities in International Trade: The Neglected Dimension," CEPR Discussion Papers 17118, C.E.P.R. Discussion Papers.
    7. Alberto Alesina & Johann Harnoss & Hillel Rapoport, 2016. "Birthplace diversity and economic prosperity," Journal of Economic Growth, Springer, vol. 21(2), pages 101-138, June.
    8. Salvador Gil-Pareja & Rafael Llorca-Vivero & José Antonio Martínez-Serrano, 2018. "Reciprocal vs nonreciprocal trade agreements: which have been best to promote exports?," Working Papers 1802, Department of Applied Economics II, Universidad de Valencia.
    9. Kox, Henk L.M. & Rojas Romasgosa, Hugo, 2019. "Gravity estimations with FDI bilateral data: Potential FDI effects of deep preferential trade agreements," MPRA Paper 96318, University Library of Munich, Germany.
    10. Marie M Stack & Rob Ackrill & Martin Bliss, 2019. "Sugar trade and the role of historical colonial linkages," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 46(1), pages 79-108.
    11. D'Ambrosio, Anna & Montresor, Sandro, 2017. "Migration and Trade Ows: New Evidence from Spanish Regions," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201724, University of Turin.
    12. Maria Cipollina & Luca De Benedictis & Luca Salvatici & Claudio Vicarelli, 2016. "Policy Measurement And Multilateral Resistance In Gravity Models," Working Papers LuissLab 16130, Dipartimento di Economia e Finanza, LUISS Guido Carli.
    13. Head, Keith & Mayer, Thierry, 2014. "Gravity Equations: Workhorse,Toolkit, and Cookbook," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 131-195, Elsevier.
    14. Ron Boschma & Simona Iammarino & Raffaele Paci & Jordy Suriñach & Raul Ramos & Jordi Suriñach, 2017. "A Gravity Model of Migration Between the ENC and the EU," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(1), pages 21-35, February.
    15. Che, Yi & Du, Julan & Lu, Yi & Tao, Zhigang, 2015. "Once an enemy, forever an enemy? The long-run impact of the Japanese invasion of China from 1937 to 1945 on trade and investment," Journal of International Economics, Elsevier, vol. 96(1), pages 182-198.
    16. Roberta Capello & Andrea Caragliu, 2021. "Regional growth and disparities in a post‐COVID Europe: A new normality scenario," Journal of Regional Science, Wiley Blackwell, vol. 61(4), pages 710-727, September.
    17. Andrés Artal-Tur & Vicente J. Pallardó-López & Francisco Requena-Silvente, 2016. "Examining the impact of visa restrictions on international tourist flows using panel data," Estudios de Economia, University of Chile, Department of Economics, vol. 43(2 Year 20), pages 265-279, December.
    18. Daniel Berger & William Easterly & Nathan Nunn & Shanker Satyanath, 2013. "Commercial Imperialism? Political Influence and Trade during the Cold War," American Economic Review, American Economic Association, vol. 103(2), pages 863-896, April.
    19. Aleksandra Parteka & Joanna Wolszczak-Derlacz, 2013. "The Impact of Trade Integration with the European Union on Productivity in a Posttransition Economy: The Case of Polish Manufacturing Sectors," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 49(2), pages 84-104, March.
    20. Mario Larch & Pehr-Johan Norbäck & Steffen Sirries & Dieter M. Urban, 2016. "Heterogeneous Firms, Globalisation and the Distance Puzzle," The World Economy, Wiley Blackwell, vol. 39(9), pages 1307-1338, September.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:worlde:v:45:y:2022:i:2:p:409-429. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0378-5920 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.