IDEAS home Printed from https://ideas.repec.org/p/bcu/iefewp/iefewp92.html
   My bibliography  Save this paper

Barriers to Public Procurement: A Review and Recent Patterns in the EU

Author

Listed:
  • Chiara Carboni
  • Elisabetta Iossa
  • Gianpiero Mattera

Abstract

The international dimension of public procurement has gained in importance in the last decade and has attracted the attention of economist and policy makers. A number of trade agreements were signed with the intention to remove barriers to procurement markets and favour entry of foreign firms and products. However, empirical evidence shows that, despite the existence of trade agreements, discrimination towards foreign firms still applies in a number of countries around the world. In this paper, we discuss the methodologies used in the economic literature for the identification of overt and covert barriers to public tenders and some empirical evidence from the EU, TED database. We stress the importance of collecting high quality data for meliorating the ability of international traders to detect procurement barriers.

Suggested Citation

  • 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.
  • Handle: RePEc:bcu:iefewp:iefewp92
    as

    Download full text from publisher

    File URL: https://repec.unibocconi.it/iefe/bcu/papers/iefewp92.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. David H. Autor & David Dorn & Gordon H. Hanson, 2016. "The China Shock: Learning from Labor-Market Adjustment to Large Changes in Trade," Annual Review of Economics, Annual Reviews, vol. 8(1), pages 205-240, October.
    2. McAfee, R. Preston & McMillan, John, 1989. "Government procurement and international trade," Journal of International Economics, Elsevier, vol. 26(3-4), pages 291-308, May.
    3. repec:idb:brikps:publication-detail,7101.html?id=68550 is not listed on IDEAS
    4. Shingal, Anirudh, 2011. "Services procurement under the WTO's Agreement on Government Procurement: whither market access?," World Trade Review, Cambridge University Press, vol. 10(4), pages 527-549, October.
    5. Andrew B. Bernard & Stephen J. Redding & Peter K. Schott, 2013. "Testing for Factor Price Equality with Unobserved Differences in Factor Quality or Productivity," American Economic Journal: Microeconomics, American Economic Association, vol. 5(2), pages 135-163, May.
    6. Zornitsa Kutlina-Dimitrova & Csilla Lakatos, 2016. "Determinants of direct cross-border public procurement in EU Member States," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(3), pages 501-528, August.
    7. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    8. Stephanie Rickard & Daniel Kono, 2014. "Think globally, buy locally: International agreements and government procurement," The Review of International Organizations, Springer, vol. 9(3), pages 333-352, September.
    9. Brülhart, Marius & Trionfetti, Federico, 2001. "Industrial Specialisation and Public Procurement: Theory and Empirical Evidence," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 16, pages 106-127.
    10. David H. Autor & David Dorn & Gordon H. Hanson & Jae Song, 2014. "Trade Adjustment: Worker-Level Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 129(4), pages 1799-1860.
    11. Roberto Burguet & Yeon-Koo Che, 2004. "Competitive Procurement with Corruption," RAND Journal of Economics, The RAND Corporation, vol. 35(1), pages 50-68, Spring.
    12. Miyagiwa, Kaz, 1991. "Oligopoly and Discriminatory Government Procurement Policy," American Economic Review, American Economic Association, vol. 81(5), pages 1320-1328, December.
    13. Italo Colantone & Rosario Crinò & Laura Ogliari, 2015. "The Hidden Cost of Globalization: Import Competition and Mental Distress," CESifo Working Paper Series 5586, CESifo.
    14. Laffont, Jean-Jacques & Tirole, Jean, 1991. "Auction design and favoritism," International Journal of Industrial Organization, Elsevier, vol. 9(1), pages 9-42, March.
    15. Federico Trionfetti, 2000. "Discriminatory Public Procurement and International Trade," The World Economy, Wiley Blackwell, vol. 23(1), pages 57-76, January.
    16. Naegelen, Florence & Mougeot, Michel, 1998. "Discriminatory public procurement policy and cost reduction incentives," Journal of Public Economics, Elsevier, vol. 67(3), pages 349-367, March.
    17. Karsten Bjerring Olsen, 2006. "Productivity Impacts of Offshoring and Outsourcing: A Review," OECD Science, Technology and Industry Working Papers 2006/1, OECD Publishing.
    18. Albert Breton & Pierre Salmon, 1996. "Are Discriminatory Procurement Policies Motivated by Protectionism?," Kyklos, Wiley Blackwell, vol. 49(1), pages 47-68, February.
    19. Mary Amiti & Shang-Jin Wei, 2006. "Service Offshoring and Productivity: Evidence from the United States," NBER Working Papers 11926, National Bureau of Economic Research, Inc.
    20. Shingal, ANIRUDH, 2011. "Foreign market access in government procurement," MPRA Paper 32814, University Library of Munich, Germany.
    21. Branco, Fernando, 1994. "Favoring domestic firms in procurement contracts," Journal of International Economics, Elsevier, vol. 37(1-2), pages 65-80, August.
    22. Sam Laird & Alexander Yeats, 1990. "Quantitative Methods for Trade-Barrier Analysis," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-349-11141-1, September.
    23. Laura Rojas, 2003. "Market Access under the Government Sector's Procurement Agreements," IDB Publications (Working Papers) 80359, Inter-American Development Bank.
    24. Brulhart, Marius & Trionfetti, Federico, 2004. "Public expenditure, international specialisation and agglomeration," European Economic Review, Elsevier, vol. 48(4), pages 851-881, August.
    25. Vagstad, Steinar, 1995. "Promoting fair competition in public procurement," Journal of Public Economics, Elsevier, vol. 58(2), pages 283-307, October.
    26. Cernat, Lucian & Kutlina-Dimitrova, Zornitsa, 2015. "International public procurement: From scant facts to hard data," DG TRADE Chief Economist Notes 2015-1, Directorate General for Trade, European Commission.
    Full references (including those not matched with items on IDEAS)

    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. 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.
    2. Anirudh Shingal, 2015. "Econometric Analyses of Home Bias in Government Procurement," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 188-219, February.
    3. MILE 02, Anirudh Shingal, 2012. "Exploring foreign market access in government procurement," Papers 305, World Trade Institute.
    4. 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.
    5. Evenett, Simon J. & Hoekman, Bernard M., 2005. "Government procurement: market access, transparency, and multilateral trade rules," European Journal of Political Economy, Elsevier, vol. 21(1), pages 163-183, March.
    6. Zornitsa Kutlina-Dimitrova & Csilla Lakatos, 2016. "Determinants of direct cross-border public procurement in EU Member States," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 152(3), pages 501-528, August.
    7. Shingal, ANIRUDH, 2011. "Foreign market access in government procurement," MPRA Paper 32814, University Library of Munich, Germany.
    8. Kutlina-Dimitrova, Zornitsa, 2018. "Government procurement: data, trends and protectionist tendencies," DG TRADE Chief Economist Notes 2018-3, Directorate General for Trade, European Commission.
    9. Ragoussis, Alexandros, 2016. "Government agoraphobia: home bias in developing country procurement markets," IDOS Discussion Papers 5/2016, German Institute of Development and Sustainability (IDOS).
    10. Brulhart, Marius & Trionfetti, Federico, 2004. "Public expenditure, international specialisation and agglomeration," European Economic Review, Elsevier, vol. 48(4), pages 851-881, August.
    11. Marius BRÜLHART & Federico TRIONFETTI, 2000. "Public Expenditure and International Specialisation," Cahiers de Recherches Economiques du Département d'économie 00.23, Université de Lausanne, Faculté des HEC, Département d’économie.
    12. Dimitri Mardas, 2010. "Stabilization and Association Agreements (SAAs), Europe Agreements, and Public Procurement," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 38(3), pages 331-343, September.
    13. Arozamena, Leandro & Weinschelbaum, Federico, 2009. "The effect of corruption on bidding behavior in first-price auctions," European Economic Review, Elsevier, vol. 53(6), pages 645-657, August.
    14. Naegelen, Florence & Mougeot, Michel, 1998. "Discriminatory public procurement policy and cost reduction incentives," Journal of Public Economics, Elsevier, vol. 67(3), pages 349-367, March.
    15. Maréchal, François & Morand, Pierre-Henri, 2022. "Are social and environmental clauses a tool for favoritism? Analysis of French public procurement contracts," European Journal of Political Economy, Elsevier, vol. 73(C).
    16. 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.
    17. François Maréchal & Pierre-Henri Morand, 2021. "Are social and environmental clauses a tool for favoritism? Analysis of French public procurement contracts ," Post-Print hal-03418572, HAL.
    18. Alen Mulabdic & Lorenzo Rotunno, 2021. "Trade barriers in government procurement," AMSE Working Papers 2122, Aix-Marseille School of Economics, France.
    19. Branco, Fernando, 2002. "Procurement favouritism and technology adoption," European Economic Review, Elsevier, vol. 46(1), pages 73-91, January.
    20. Leandro Arozamena & Federico Weinschelbaum & Juan-José Ganuza, 2021. "Renegotiation and Discrimination in Symmetric Procurement Auctions," Department of Economics Working Papers 2021_09, Universidad Torcuato Di Tella.

    More about this item

    Keywords

    Discrimination in procurement; international trade; procurement barriers.;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:bcu:iefewp:iefewp92. 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: . General contact details of provider: https://edirc.repec.org/data/eabocit.html .

    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: Carlotta Milani (email available below). General contact details of provider: https://edirc.repec.org/data/eabocit.html .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.