Firm Performance and Participation in Public Procurement: Evidence from Sub-Saharan Africa

Hoekman, Bernard; Sanfilippo, Marco

doi:10.2139/ssrn.3157559

Cited by 17 publications

(11 citation statements)

References 47 publications

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“…In countries of the global South Wittig (1999: 3) identifies the public procurement sector as "often the largest domestic market". Likewise, Hoekman & Sanfilippo (2018) confirm that in some of the poorest regions of the world, including sub-Saharan Africa, the magnitude of public procurement is highly significant in configuring the economic landscape. Conventionally state procurement systems incorporate procedures to ensure that contracts are awarded to the lowest cost suppliers that satisfy particular technical specifications.…”

Section: Leveraging State Procurement: the International Experiencementioning

confidence: 63%

“…Most existing African literature focuses on issues of governance, legal issues, reduction of corruption, the development of enhanced institutional and management frameworks and firm performance (eg. Quinot & Arrowsmith, 2013;Williams-Elegbe, 2013;Leon de Mariz et al, 2014;Uromi, 2014;Williams-Elegbe, 2015;Ambaw & Telgan, 2017;Engelbert et al, 2016;Engelbert, 2017;African Procurement Law Unit, 2018;Hoekman & Sanfilippo, 2018). Beyond these studies, one must note Akenroye et al (2013) on the implementation of green public procurement in Nigeria, Mphela & Shunda (2018) on the challenges for SMMEs to engage with public procurement in Botswana, Israel & Gazungu (2019) on procurement and SMMEs in Tanzania, and, Amoah & Shakantu (2017) on public procurement preferences in Ghana in support of the local construction industry.…”

Section: Leveraging State Procurement: the International Experiencementioning

confidence: 99%

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Public Procurement, State Assets and Inclusive Tourism: South African Debates

Rogerson¹,

Rogerson²

2019

GTG

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Inclusive tourism represents a concept which is attracting major interest in international literature and an increasing policy focus in South Africa. Public procurement is used in South Africa as a vehicle for supporting national development goals. Against the background of growing interest on the behalf of South Africa's national government to utilize public procurement for leveraging a more inclusive development path the aim is to direct attention to the potential application of public procurement as a vehicle for enhanced inclusion in the country's tourism sector. Three sections of discussion are presented. As essential context the first section reviews international debates around public procurement as a policy tool. The second section turns attention to ongoing South African debates and policy initiatives around the leveraging of public procurement. State assets are the focus in the third section and their use through public procurement as a potential policy vehicle for inclusive tourism development in South Africa. In terms of methodology the paper draws upon a critical analysis of international experience of procurement, a review and analysis of policy documents, and published and unpublished data on immovable state assets that can be applied potentially in using public procurement for inclusive tourism development in South Africa. The central argument is multiple opportunities exist for public procurement to lever state assets in support of the goals of inclusive tourism development in South Africa.

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Section: Leveraging State Procurement: the International Experiencementioning

confidence: 63%

Section: Leveraging State Procurement: the International Experiencementioning

confidence: 99%

Public Procurement, State Assets and Inclusive Tourism: South African Debates

Rogerson¹,

Rogerson²

2019

GTG

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“…Analysis 21 of firm-level data from 19 Sub-Saharan African countries suggest that a 10 percentage points increase in the share of output sold to the government is associated with a 4 percentage points increase in firm productivity. Public procurement also increases a firm's capital intensity, ability to pay higher wages, and introduce new products (Hoekman and Sanfilippo, 2018). In Brazil, winning a government contract had a positive impact on firm-level employment growth, which was persistent well beyond the expiration date of the contract.…”

Section: Public Procurementmentioning

confidence: 99%

“…(Arráiz et al, 2013). Positive effects on firm performance are also found from the "Productive Linkages" program, in Costa Rica, export promotion programs in Tunisia and the Arab Republic of Egypt, and public procurement programs in several Sub-Saharan African countries (Alfaro-Urena et al, 2019;Cadot et al, 2015;Atkin et al, 2017;Hoekman and Sanfilippo, 2018).…”

Section: Introductionmentioning

confidence: 95%

Using Experimental Evidence to Inform Firm Support Programs in Developing Countries

Grover¹,

Imbruno²

2020

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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent. Policy Research Working Paper 9461Countries design programs for supporting firms, with varying levels of success. Firm growth is constrained by several factors, such as low firm capabilities (e.g. management), availability of finance, and access to markets. Based on the available experimental evidence on firm support programs in developing countries, this paper makes three broad observations. First, there are huge knowledge gaps in understanding the success of instruments that alleviate firm constraints. Various instruments, such as early-stage equity finance, incubators, and accelerators, remain untested due to the lack of good design, results framework, or monitoring and evaluation systems and so on. Second, since these interventions are expensive, policy makers expect such programs to be designed more effectively to pursue their objectives. However, evidence provides little guidance on the criterion for firm selection because the existing evaluations of instruments reveal little information on the heterogeneous impact by firm characteristics, such as the age, size, sector, and location of firms. Third, most interventions seek to address only one of the broad constraints faced by firms. To this end, the paper concludes with a novel proposal for a firm support program that attempts to sequentially address multiple constraints to firm growth. This program will be implemented in Malawi through the "Financial Inclusion and Entrepreneurship Scaling" project.

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“…1 The other strand of the literature instead assesses the importance of demand constraints. There is growing evidence that access to bigger and more quality-sensitive markets can raise firm growth (Verhoogen, 2008;Syverson, 2011;Hornbeck & Rotemberg, 2019;Goldberg & Reed, 2020), and small firms in particular appear to benefit from selling to large buyers (Hoekman & Sanfilippo, 2018;Alfaro-Urena et al, 2019;Abebe et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Informational Barriers to Market Access: Experimental Evidence from Liberian Firms

Hjort¹,

Iyer

Rochambeau

2020

SSRN Journal

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Evidence suggests that firms in poor countries stagnate because they cannot access growth-conducive markets. We hypothesize that overlooked heterogeneity in marketing ability distorts market access. To investigate, we gave a random subset of Liberian firms vouchers for a week-long program that teaches how to sell to corporations, governments, and other large buyers. Firms that participate win about three times as many contracts, but only firms with access to the Internet benefit. We use a simple model and variation in online and offline demand to show evidence that this is because ICT dampens traditional information frictions, but not marketing barriers.

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Firm Performance and Participation in Public Procurement: Evidence from Sub-Saharan Africa

Cited by 17 publications

References 47 publications

Public Procurement, State Assets and Inclusive Tourism: South African Debates

Public Procurement, State Assets and Inclusive Tourism: South African Debates

Using Experimental Evidence to Inform Firm Support Programs in Developing Countries

Informational Barriers to Market Access: Experimental Evidence from Liberian Firms

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