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Government Procurement: Market Access, Transparency, and Multilateral Trade Rules

  • Evenett, Simon J
  • Hoekman, Bernard

The effects on national welfare and on market access of two public procurement practices, discrimination and non-transparency, are examined. Both policies have become prominent in international trade negotiations, such as the ongoing Doha Round of WTO trade talks. Our analysis shows that fostering either domestic competition or transparency in state contracting tends to improve welfare. In contrast, we find no clear-cut effect on market access of ending discrimination or improving transparency. This mismatch between market access and welfare effects may account for the slower progress in negotiating procurement disciplines in trade agreements than for traditional border measures such as tariffs.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4109.

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Date of creation: Nov 2003
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Handle: RePEc:cpr:ceprdp:4109
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  1. Branco, Fernando, 1994. "Favoring domestic firms in procurement contracts," Journal of International Economics, Elsevier, vol. 37(1-2), pages 65-80, August.
  2. Miyagiwa, Kaz, 1991. "Oligopoly and Discriminatory Government Procurement Policy," American Economic Review, American Economic Association, vol. 81(5), pages 1320-28, December.
  3. Breton, Albert & Salmon, Pierre, 1996. "Are Discriminatory Procurement Policies Motivated by Protectionism?," Kyklos, Wiley Blackwell, vol. 49(1), pages 47-68.
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  14. Kim, In-Gyu, 1994. "Price-preference vs. tariff policies in government procurement auctions," Economics Letters, Elsevier, vol. 45(2), pages 217-222, June.
  15. Jean-Jacques Laffont & Jean Tirole, 1993. "A Theory of Incentives in Procurement and Regulation," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121743, June.
  16. Mayer, Wolfgang, 1977. "The national defense tariff argument reconsidered," Journal of International Economics, Elsevier, vol. 7(4), pages 363-377, November.
  17. Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
  18. Ades, Alberto & Di Tella, Rafael, 1997. "National Champions and Corruption: Some Unpleasant Interventionist Arithmetic," Economic Journal, Royal Economic Society, vol. 107(443), pages 1023-42, July.
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