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The effects of digitalization on the functioning of the public sector: evidence from e-procurement

Author

Listed:
  • Annalisa Frigo

    (Bank of Italy)

  • Sauro Mocetti

    (Bank of Italy)

Abstract

The paper examines the effects of the introduction of e-procurement on the functioning of the public procurement system, with reference to procedures with a higher administrative content. Using a difference-in-difference approach, the paper compares the procurement outcomes of local authorities that had to introduce e-procurement at the beginning of 2024 with those of entities that were already using such digital tools. The results show that e-procurement has increased the transparency and speed of administrative proceedings: the availability of information on awards increased by between 4 and 8 percentage points, depending on the measure of treatment intensity used; the length of the awarding phase also decreased significantly. The positive effects were most pronounced for competitive tenders, in local authorities that used to be more opaque and in those with more qualified human resources, suggesting the existence of complementarities between human capital and digitalization in the public sector.

Suggested Citation

  • Annalisa Frigo & Sauro Mocetti, 2025. "The effects of digitalization on the functioning of the public sector: evidence from e-procurement," Questioni di Economia e Finanza (Occasional Papers) 938, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_938_25
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    File URL: https://www.bancaditalia.it/pubblicazioni/qef/2025-0938/QEF_938_25.pdf
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    More about this item

    Keywords

    digitalization; public administration; e-procurement; transparency; length of the award procedures; human capital;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration

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