Effect of public procurement regulation on competition and cost-effectiveness

Taş, Bedri Kamil Onur

doi:10.1007/s11149-020-09409-w

Cited by 13 publications

(5 citation statements)

References 30 publications

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“…See http://digiwhist.eu/ countries, find that firms are more likely to participate in public procurement markets in countries with more transparent procurement systems that rely more on open competition. Taş (2020), focusing on public procurement in the European Economic Area, finds that PP regulation that is more aligned with internationally accepted good practice standards significantly increases competition and lowers average contract prices for procuring agencies. 6 Recent thinking in the economics literature frames the impact of policy on SMEs through the entrepreneurial ecosystem.…”

Section: Public Procurement Regulation and Smesmentioning

confidence: 99%

Procurement policy and SME participation in public purchasing

Hoekman

Taş

2020

Small Bus Econ

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This study investigates the relationship between regulatory policies governing public procurement and participation by small and medium enterprises (SMEs), using a large dataset on European procurement. We find that better quality procurement regulation is associated with greater SME participation and higher probability that SMEs win contracts. Dividing contracts into smaller lots, a key feature of 2014 EU procurement regulation reform, bolsters participation by SMEs but only increases the probability of SMEs winning contracts for small value lots (€25,000 or less). Our results suggest governments seeking to enhance participation by SMEs in public procurement without explicitly favoring SMEs can do so by improving the overall quality of procurement processes.

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Section: Public Procurement Regulation and Smesmentioning

confidence: 99%

Procurement policy and SME participation in public purchasing

Hoekman

Taş

2020

Small Bus Econ

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“…Following the above raises the question of whether and to what extent the countryspecific procurement legislation plays a role in SMEs' performance in the public marketplace. Indeed, as shown by previous findings, the quality of institutions can positively influence competition and contract prices (Ferraresi et al 2021;Nemec et al 2023;Tas 2020). Although harmonising national legislation with EU-wide procurement directives, where nondiscriminatory and equal treatment is a rule of thumb, the provisions of national procurement laws can still enact the measures aimed at supporting SMEs, for example, granting an advance payment, setting the adequate value of subdivided functional lots or shortening the guarantee periods for SMEs (EuroPAM, n.d.).…”

Section: Discussionmentioning

confidence: 63%

“…Moreover, with 3 million enterprises and a direct workforce of 12.7 million, the construction sector generates about 5.5% of the EU GDP. This size makes the construction sector a significant part of the EU economy and a noteworthy business opportunity for SMEs, which account for over 99.8% of enterprises and 80% of the employment in this sector (European Commission 2019b, 2020ESCO n.d.).…”

Section: Introductionmentioning

confidence: 99%

Contesting the public works domain: examining the factors affecting presence and success of SMES in public procurement

Nemec

2024

Empir Econ

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This study investigates the effects of procurement tools to support small and medium-sized enterprises (SMEs) in public contracts by analysing contract awards for public works published on Tenders Electronic Daily in 2018–2022. Focusing on dividing contracts into smaller lots, a key feature of the 2014 EU modernised procurement framework, this study’s findings reveal that splitting contracts might not necessarily attract SMEs to bid but increases their chances of winning such contracts. Other factors, such as using open and unrestricted bidding procedures and allowing SMEs to showcase their specialisation by awarding contracts based on the best price-quality ratio, positively affect the SMEs’ bidding. The findings of this study emphasise the importance of thoroughly considering individual contract characteristics and overall procurement settings to accommodate SMEs’ limited resource capacities and foster their performance in the public procurement marketplace.

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“…First, the study contributes to the growing empirical literature on efficient procurement practices, including effects of more competent officials and lower discretion in the procurements. Tas ( 2020 ) finds that a high‐quality procurement practice increased the number of bidders and the probability that prices are lower than originally estimated in European public procurements. Bandiera et al.…”

Section: Related Literaturementioning

confidence: 99%

Competition and efficiency in repeated procurements: Lessons from the Finnish rehabilitation markets

Pitkänen

2022

Health Economics

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Inefficient practices and lack of competition are common problems in public procurements. In this study, I examine the effects of a procurement practice reform in the Finnish rehabilitation markets where providers are acquired in a repeated manner through competitive bidding scoring auctions. Until recently, the largest public procurer did not use any systematic criteria for accepting providers, and only a few providers did not receive a contract. After the reform, providers were systematically accepted based on their capacity and the local demand. I analyze the effects of the reform on prices in physio, speech and occupational therapy services with data that covers five subsequent procurements. I use the pre‐reform differences in local competition within the markets in a difference‐in‐differences setting. The descriptive evidence shows that the reform slowed down the rapid increase of prices in all three services. The regression analysis indicates that effects are strongest in the most competitive local physiotherapy markets. This suggests that increasing entry and competition in the less competitive services and local markets would benefit the public procurer.

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Effect of public procurement regulation on competition and cost-effectiveness

Cited by 13 publications

References 30 publications

Procurement policy and SME participation in public purchasing

Procurement policy and SME participation in public purchasing

Contesting the public works domain: examining the factors affecting presence and success of SMES in public procurement

Competition and efficiency in repeated procurements: Lessons from the Finnish rehabilitation markets

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