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"New" econometric evidence for the Baldwin-Richardson (1972)/Miyagiwa (1991) theoretical predictions in government procurement

  • Shingal, Anirudh

Baldwin and Richardson (1972) and Miyagiwa (1991) laid out the conditions under which a home-bias in public procurement is rendered ineffective as a protectionist device. Since then there has been little empirical work on this subject. In this paper, we bridge this gap by building a new dataset from WTO notifications on domestic and foreign purchases by Japanese and Swiss governments at the sector level over 1990-2003 and use it to test the BRM theoretical predictions. Significantly, our empirical results support these theoretical predictions.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 49138.

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Date of creation: 21 Jul 2013
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Handle: RePEc:pra:mprapa:49138
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  1. James E. Rauch, 1996. "Networks versus Markets in International Trade," NBER Working Papers 5617, National Bureau of Economic Research, Inc.
  2. 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.
  3. Joao Santos Silva & Silvana Tenreyro, 2005. "The log of gravity," LSE Research Online Documents on Economics 3744, London School of Economics and Political Science, LSE Library.
  4. Brulhart, Marius & Trionfetti, Federico, 2004. "Public expenditure, international specialisation and agglomeration," European Economic Review, Elsevier, vol. 48(4), pages 851-881, August.
  5. Clément Bosquet & Hervé Boulhol, 2014. "Applying the GLM Variance Assumption to Overcome the Scale-Dependence of the Negative Binomial QGPML Estimator," Econometric Reviews, Taylor & Francis Journals, vol. 33(7), pages 772-784, October.
  6. Evenett, Simon J, 2009. "What Can Be Learned from Crisis-Era Protectionism? An Initial Assessment," CEPR Discussion Papers 7494, C.E.P.R. Discussion Papers.
  7. 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.
  8. Grubel, Herbert G & Lloyd, P J, 1971. "The Empirical Measurement of Intra- Industry Trade," The Economic Record, The Economic Society of Australia, vol. 47(120), pages 494-517, December.
  9. Clément Bosquet & Hervé Boulhol, 2010. "Scale-dependence of the Negative Binomial Pseudo-Maximum Likelihood Estimator," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00544129, HAL.
  10. Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, number 9780521848053.
  11. Jiawen Yang, 1997. "Exchange Rate Pass-Through In U.S. Manufacturing Industries," The Review of Economics and Statistics, MIT Press, vol. 79(1), pages 95-104, February.
  12. Trionfetti, Federico, 2001. "Public Procurement, Market Integration, and Income Inequalities," Review of International Economics, Wiley Blackwell, vol. 9(1), pages 29-41, February.
  13. Weichenrieder, Alfons J., 1999. "Public procurement in the presence of capital taxation," ZEW Discussion Papers 99-41, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  14. Federico Trionfetti, 2000. "Discriminatory Public Procurement and International Trade," The World Economy, Wiley Blackwell, vol. 23(1), pages 57-76, 01.
  15. Miyagiwa, Kaz, 1991. "Oligopoly and Discriminatory Government Procurement Policy," American Economic Review, American Economic Association, vol. 81(5), pages 1320-28, December.
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