IDEAS home Printed from https://ideas.repec.org/p/ris/dgtcen/2017_001.html
   My bibliography  Save this paper

Can we put a price on extending the scope of the GPA? First quantitative assessment

Author

Listed:
  • Kutlina-Dimitrova, Zornitsa

    (DG Trade)

Abstract

The aim of this paper is to analyse the impact of domestic preferences elimination in government procurement agreement (GPA) parties. For this purpose, in a first attempt, I use the newly created public procurement database and modelling extension of the Global Trade Analysis Project (GTAP) model. The shock design of the modelling scenarios is based on insights from empirical literature and is calculated as a difference between private and government sector import penetration. Depending on the scenario, the GPA parties’ GDP increases between $4-5 billion. Implications with regard to economic welfare, however, are more important, the equivalent variation measure points to welfare gains in the range of $8-10 billion. The current research, being the first modelling application paper of the newly created database, and model suggest that further expansion of the scope and coverage of the GPA can bring sizeable economic benefits.

Suggested Citation

  • 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.
    • Handle: RePEc:ris:dgtcen:2017_001
    as

    Download full text from publisher

    File URL: https://policy.trade.ec.europa.eu/analysis-and-assessment/economic-analysis_en#notes
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. McAfee, R. Preston & McMillan, John, 1989. "Government procurement and international trade," Journal of International Economics, Elsevier, vol. 26(3-4), pages 291-308, May.
    2. Federico Trionfetti, 2001. "Public Procurement, Market Integration, and Income Inequalities," Review of International Economics, Wiley Blackwell, vol. 9(1), pages 29-41, February.
    3. 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.
    4. 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.
    5. Matthieu Crozet & Federico Trionfetti, 2002. "Effets-frontieres entre les pays de l'Union europeenne : le poids des politiques d'achats publics," Economie Internationale, CEPII research center, issue 89-90, pages 189-208.
    6. Miyagiwa, Kaz, 1991. "Oligopoly and Discriminatory Government Procurement Policy," American Economic Review, American Economic Association, vol. 81(5), pages 1320-1328, December.
    7. İlke Onur & Rasim Özcan & Bedri Taş, 2012. "Public Procurement Auctions and Competition in Turkey," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 40(3), pages 207-223, May.
    8. Federico Trionfetti, 2000. "Discriminatory Public Procurement and International Trade," The World Economy, Wiley Blackwell, vol. 23(1), pages 57-76, January.
    9. Kutlina-Dimitrova, Zornitsa & Lakatos, Csilla, 2014. "Determinants of direct cross-border public procurement in EU Member States," Conference papers 332500, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Brulhart, Marius & Trionfetti, Federico, 2004. "Public expenditure, international specialisation and agglomeration," European Economic Review, Elsevier, vol. 48(4), pages 851-881, August.
    11. 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.
    12. 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.
    13. 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, December.
    14. 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.
    15. Anirudh Shingal, 2015. "Econometric Analyses of Home Bias in Government Procurement," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 188-219, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kutlina-Dimitrova, Zornitsa, 2018. "Government procurement: data, trends and protectionist tendencies," DG TRADE Chief Economist Notes 2018-3, Directorate General for Trade, European Commission.
    2. Cernat, Lucian & Kutlina-Dimitrova, Zornitsa, 2020. "Public Procurement - How open is the European Union to US firms and beyond?," CEPS Papers 26698, Centre for European Policy Studies.
    3. 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.

    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. Kutlina-Dimitrova, Zornitsa, 2018. "Government procurement: data, trends and protectionist tendencies," DG TRADE Chief Economist Notes 2018-3, Directorate General for Trade, European Commission.
    2. Mulabdic, Alen & Rotunno, Lorenzo, 2022. "Trade barriers in government procurement," European Economic Review, Elsevier, vol. 148(C).
    3. 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.
    4. 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.
    5. Bernard Hoekman & Marco Sanfilippo, 2018. "Firm performance and participation in public procurement: Evidence from Sub-Saharan Africa," RSCAS Working Papers 2018/16, European University Institute.
    6. Shingal, Anirudh, 2013. ""New" econometric evidence for the Baldwin-Richardson (1972)/Miyagiwa (1991) theoretical predictions in government procurement," MPRA Paper 49138, University Library of Munich, Germany.
    7. Bernard Hoekman, 2015. "International Cooperation on Public Procurement Regulation," RSCAS Working Papers 2015/88, European University Institute.
    8. Anirudh Shingal, 2015. "Econometric Analyses of Home Bias in Government Procurement," Review of International Economics, Wiley Blackwell, vol. 23(1), pages 188-219, February.
    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. 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.
    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. Anne‐Célia Disdier & Lionel Fontagné & Enxhi Tresa, 2021. "Economic drivers of public procurement‐related protection," The World Economy, Wiley Blackwell, vol. 44(11), pages 3072-3090, November.
    14. MILE 02, Anirudh Shingal, 2012. "Exploring foreign market access in government procurement," Papers 305, World Trade Institute.
    15. 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.
    16. 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.
    17. García-Alonso, María D.C. & Levine, Paul, 2008. "Strategic procurement, openness and market structure," International Journal of Industrial Organization, Elsevier, vol. 26(5), pages 1180-1190, September.
    18. Francesco Crespi & Dario Guarascio, 2019. "The demand-pull effect of public procurement on innovation and industrial renewal," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(4), pages 793-815.
    19. 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.
    20. Hejing Chen & John Whalley, 2011. "The WTO Government Procurement Agreement and Its Impacts on Trade," NBER Working Papers 17365, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Economic modelling; Government Procurement Agreement; International trade;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts

    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:ris:dgtcen:2017_001. See general information about how to correct material in RePEc.

    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: Zornitsa Kutlina-Dimitrova (email available below). General contact details of provider: https://edirc.repec.org/data/dgtecbe.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.