Are Discriminatory Procurement Policies Motivated by Protectionism?

Breton, Albert; Salmon, Pierre

doi:10.1111/j.1467-6435.1996.tb01384.x

Cited by 58 publications

(26 citation statements)

References 21 publications

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“…Literature has also evolved to explain this home-bias in public procurement - McAfee and McMillan (1989), Laffont and Tirole (1991), Rothenberg (1993), Branco (1994), Breton and Salmon (1995), Chen (1995), Vagstad (1995), Naegelen andMougeot (1998), Weichenrieder (2001). Another branch of this literature has looked at corruption and bribery as determinants of the home-bias in public procurement - Rose-Ackerman (1975), Rose-Ackerman (1978), Burguet and Perry (2000), Burguet and Che (2004), Compte et.al.…”

Section: Introductionmentioning

confidence: 99%

“…5 A competitive domestic market ensures both availability of suppliers and cost minimization through competition. In some cases, however, governments may need to restrict competition to ensure contract performance (Laffont and Tirole, 1991;Rothenberg, 1993;Breton and Salmon, 1995). 6 Would the tender documentation require translation?…”

Section: Introductionmentioning

confidence: 99%

“…Such considerations also govern the participation decisions of foreign firms besides inflating their costs. 7 Breton & Salmon (1995) show that the premium required to ensure contract compliance may increase with the number of potential bidders and in such situations minimizing expected procurement costs may require limiting the number of potential suppliers. Problems of asymmetric information may also induce procuring entities to choose suppliers located within their jurisdictions so as to reduce monitoring costs.…”

Section: Introductionmentioning

confidence: 99%

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Exploring Foreign Market Access in Government Procurement

Shingal

2012

SSRN Journal

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Using unexplored Japanese and Swiss public procurement data over 1990-2003, we examine the effect of macroeconomic, political economy, procurement-specific and domestic policy factors on governments' sourcing decisions. We also provide for an empirical test of Baldwin's (1970Baldwin's ( , 1984 "neutrality proposition" and for the effectiveness of the WTO's Uruguay Round Agreement on Government Procurement (URGPA) in increasing foreign market access. Our results suggest the importance of the magnitude of procurement demand, domestic firm attributes and unobserved sector-specific heterogeneity in these governments' purchases from abroad. However, the expected impact of traditional macroeconomic variables and political budget cycles does not come through in our results. Public and private sector imports do not offset each other in our analyses for Japan and only selectively for Switzerland. Finally, membership of the GPA is only found to increase the value of foreign procurement in Switzerland, though it seems to increase the import demand for contracts in both countries. JEL classification: F10, F13, F14, D72, H57Key words: Government procurement, home-bias, market access, GPA, Japan, Switzerland NCCR TRADE WORKING PAPERS are preliminary documents posted on the NCCR Trade Regulation website () and widely circulated to stimulate discussion and critical comment. These papers have not been formally edited. Citations should refer to a "NCCR Trade Working Paper", with appropriate reference made to the author(s). AbstractUsing unexplored Japanese and Swiss public procurement data over 1990-2003, we examine the effect of macroeconomic, political economy, procurement-specific and domestic policy factors on governments" sourcing decisions. We also provide for an empirical test of Baldwin's (1970Baldwin's ( , 1984 "neutrality proposition" and for the effectiveness of the WTO's Uruguay Round Agreement on Government Procurement (URGPA) in increasing foreign market access. Our results suggest the importance of the magnitude of procurement demand, domestic firm attributes and unobserved sector-specific heterogeneity in these governments' purchases from abroad. However, the expected impact of traditional macroeconomic variables and political budget cycles does not come through in our results. Public and private sector imports do not offset each other in our analyses for Japan and only selectively for Switzerland. Finally, membership of the URGPA is only found to increase the value of foreign procurement in Switzerland, though it seems to increase the import demand for contracts in both countries.JEL classification: F10, F13, F14, D72, H57

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Exploring Foreign Market Access in Government Procurement

Shingal

2012

SSRN Journal

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“…Finally, for products and services that are subject to information asymmetries and compliance issues, they may select those domestic suppliers that are located within their jurisdiction to reduce associated monitoring costs (Breton and Salman, 1995).…”

Section: Box 81 New Procurement Regulation Of the European Unionmentioning

confidence: 99%

Gestión financiera pública en América Latina: la clave de la eficiencia y la transparencia

Pimenta¹,

Varea²,

Arosteguiberry³

et al. 2015

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Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives (CC-IGO BY-NC-ND 3.0 IGO) license (http://creativecommons.org/licenses/by-nc-nd/3.0/igo/legalcode) and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed.Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license. At present, macro-fiscal policy faces significant regional challenges. Fiscal risks associated with contingent liabilities related to social security; public pensions; public-private partnerships; natural disasters; subnational government finances; volatile revenues, particularly in natural resource rich countries; and modest growth in developed countries must be made transparent through the sharing of PFM information. While there may be considerable heterogeneity across Latin American countries, there are widespread efforts toward fiscal discipline and sustainable levels of public debt, as well as concern regarding these risks in the medium and long term.In response to this scenario, most countries in the region have embarked on reforms to improve their financial management performance indicators; better integrate cash and debt management; further improve liquidity management through more efficient treasury single accounts; apply international public sector accounting standards; implement public sector cost management; further integrate financial management information systems;and incorporate more transparent and efficient public procurement. The objectives of these reforms are to allocate and use public financial resources more efficiently, effectively, and transparently; measure and manage fiscal risks; and improve the formulation of fiscal and public management policies, based on reliable, comprehensive, and timely financial information.Together, the IDB and the IMF remain committed to assist the countries of Latin America with the design and implementation of efficient PFM systems to strengthen their institutions. We hope that this book will contribute to this endeavor. These reforms and associated challenges matter, in any event, since they are part of the comprehensive effort of governments to meet the demands of citizens for better public services and more solid and transparent fiscal institutions. Governments must allocate and use public resources more efficiently if they wish to succeed in tackling the increasingly complex and uncertain global environment. PFM is the key to achieving these goals. Santiago Levy Vitor GasparThe work of the IDB's Institutions for Development Department focuses on assisting governments to strengthen public sector institutions so that they can achieve these goals. The Department's specialists have provided valuable advice an...

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“…These practices still remain active in EU Commission of the EU [4,5]. In fact, the abolition of "buy national" rules necessitates a long and painful procedure because, in general, governments are reluctant to implement the "equal treatment" principle in their public procurement practices [6]. Consequently, "buy national" policies persist, despite either the 'Single European Act' provisions for market openness (EC Directives 93/36, 93/37, 93/38 and the new series of 2004/18 and 2014/24) or the 'Tokyo' and 'Uruguay' Rounds Trade Agreements (such as the Government Procurement Agreements -GPA).…”

Section: Introductionmentioning

confidence: 99%

Monitoring Public Procurement Using a Fuzzy Logic System

Mardas

Tsadiras²

2015

J Stock Forex Trad

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The problem of monitoring public procurement is a vital issue, especially in the European Union (EU), where the free movement of goods is finally established by the "Single European Act". A monitoring system that could be applied after public procurement contracts have been awarded, would examine and identify the existence both, of corruption and of "buy national" policies and practices (i.e. policies favouring domestic suppliers). In this article, the use of a fuzzy logic system as a monitoring mechanism for public procurement is proposed. Using this system, national or EU surveillance authorities can sort the contractors in a series of categories, identifying the degree of their efficiency. The design and implementation of the proposed fuzzy logic system is presented, followed by demonstrative examples of its operation. This system, which applies mainly to goods and services, can also be used as a decision support system at the stage of the selection process, assisting the choice of the best contractor.

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Are Discriminatory Procurement Policies Motivated by Protectionism?

Cited by 58 publications

References 21 publications

Exploring Foreign Market Access in Government Procurement

Exploring Foreign Market Access in Government Procurement

Gestión financiera pública en América Latina: la clave de la eficiencia y la transparencia

Monitoring Public Procurement Using a Fuzzy Logic System

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