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SMEs Performance in Public Procurement and the Italian Legality Rating

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Abstract

This study investigates the impact of the Italian Legality Rating (LR) on small and medium enterprises (SMEs) in public procurement. The LR, issued by the Italian Competition Authority, evaluates firms based on fiscal transparency, anti-corruption practices, corporate responsibility, and sustainability. While larger firms are more likely to obtain higher LR scores, SMEs benefit significantly from holding the certification. Using firm-level data and a Regression Discontinuity Design, we find that the LR doubles SMEs’ tender-winning probabilities, highlighting its role as a strong institutional signal. Our findings emphasize the LR’s potential to enhance SME competitiveness in public procurement.

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  • Andrea Fazio & Erminia Florio & Gustavo Piga, 2024. "SMEs Performance in Public Procurement and the Italian Legality Rating," CEIS Research Paper 587, Tor Vergata University, CEIS, revised 13 Jun 2025.
    • Handle: RePEc:rtv:ceisrp:587
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    1. Elisabetta Iossa & Chiara Latour, 2025. "Firms’ Legality and Efficiency: Evidence from Public Procurement," CEIS Research Paper 592, Tor Vergata University, CEIS, revised 10 Feb 2025.

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