IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Quality or Price? Evidence from ODA-Financed Public Procurement

Listed author(s):
  • Antonio Estache

    (Universite Libre de Bruxelles, Belgium)

  • Atsushi Iimi


    (Universite Libre de Bruxelles, Belgium)

Infrastructure is essential for economic growth, and public procurement is an important instrument to use limited resources effectively. Among public procurers there remains a strong view that quality should not be compromised, particularly in high-value transactions, such as infrastructure projects. The common practice excludes incompetent applicants from the selection process. An alternative view is that infrastructure procurement can stimulate the economy by loosing qualification standards. The article examines this trade-off between price and quality. Using procurement data from electricity projects in developing countries, it shows that the adoption of substantive quality qualification increases bid prices for technical reasons and deters the bidder entry, which would raise procurement costs further. The auctioneer’s decision to adopt the quality qualification procedure is also found exogenous, meaning that auctioneers would not compromise the quality of projects regardless of the level of competition. This is an important measure to ensure the quality of complex infrastructure works.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by in its journal Public Finance Review.

Volume (Year): 40 (2012)
Issue (Month): 4 (July)
Pages: 435-469

in new window

Handle: RePEc:sae:pubfin:v:40:y:2012:i:4:p:435-469
Contact details of provider:

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:40:y:2012:i:4:p:435-469. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications)

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.