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Services procurement under the WTO’s agreement on government procurement: whither market access?

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  • Shingal, Anirudh

Abstract

This paper studies the government procurement of services from foreign suppliers by conducting a statistical analysis of data submitted by Japan and Switzerland to the WTO's Committee on Government Procurement. Using several metrics, the paper examines whether the WTO’s Agreement on Government Procurement (GPA) has led to greater market access for foreign suppliers in services procurement. Our results indicate that despite the GPA, the proportions of services contracts awarded to foreigners have declined over time for both countries and that in the absence of this decline, the value of services contracts awarded to foreign firms would have been more than 15 times higher in the case of Japan and nearly 68 times more in the case of Switzerland. We also find that for the same services categories, the Japanese government is not purchasing as much from abroad as its private sector is importing from the rest of the world, a finding that further points to the home-bias in that government's public purchase decisions.

Suggested Citation

  • Shingal, Anirudh, 2010. "Services procurement under the WTO’s agreement on government procurement: whither market access?," MPRA Paper 32881, University Library of Munich, Germany, revised 18 Jul 2011.
    • Handle: RePEc:pra:mprapa:32881
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    References listed on IDEAS

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    1. Baldwin, Robert E., 1984. "Trade policies in developed countries," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 1, chapter 12, pages 571-619, Elsevier.
    2. Miyagiwa, Kaz, 1991. "Oligopoly and Discriminatory Government Procurement Policy," American Economic Review, American Economic Association, vol. 81(5), pages 1320-1328, December.
    3. Albert Breton & Pierre Salmon, 1996. "Are Discriminatory Procurement Policies Motivated by Protectionism?," Kyklos, Wiley Blackwell, vol. 49(1), pages 47-68, February.
    4. Simon J. Evenett & Bernard M. Hoekman, 2006. "Economic Development and Multilateral Trade Cooperation," World Bank Publications - Books, The World Bank Group, number 7412.
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    Cited by:

    1. Anirudh Shingal, 2015. "Econometric Analyses of Home Bias in Government Procurement," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 188-219, February.
    2. Kutlina-Dimitrova, Zornitsa, 2018. "Government procurement: data, trends and protectionist tendencies," DG TRADE Chief Economist Notes 2018-3, Directorate General for Trade, European Commission.
    3. Malcolm Bosworth, 2015. "Government Procurement Polices Across the Tasman; What Role Played by (Preferential) Trade Agreements?," RSCAS Working Papers 2015/83, European University Institute.
    4. Xiaoli Wang & Yun Liu & Yanbing Ju, 2018. "Sustainable Public Procurement Policies on Promoting Scientific and Technological Innovation in China: Comparisons with the U.S., the UK, Japan, Germany, France, and South Korea," Sustainability, MDPI, vol. 10(7), pages 1-27, June.
    5. MILE 02, Anirudh Shingal, 2012. "Exploring foreign market access in government procurement," Papers 305, World Trade Institute.
    6. Dengler, Benedikt, 2018. "The WTO Government Procurement Agreement as a Commitment Device: A First Appraisal," CEPR Discussion Papers 13266, C.E.P.R. Discussion Papers.
    7. MILE 02, Anirudh Shingal, 2012. "Estimating market access in non-GPA countries: A suggested methodology," Papers 302, World Trade Institute.
    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. Shingal, ANIRUDH, 2011. "Foreign market access in government procurement," MPRA Paper 32814, University Library of Munich, Germany.
    10. 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.
    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. 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.
    13. Bernard Hoekman, 2015. "International Cooperation on Public Procurement Regulation," RSCAS Working Papers 2015/88, European University Institute.

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    More about this item

    Keywords

    Services; public procurement; GPA; Japan; Switzerland;
    All these keywords.

    JEL classification:

    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F10 - International Economics - - Trade - - - General

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