Shingal, ANIRUDH (2011): Exploring foreign market access in government procurement.
This is the latest version of this item.
Download (472kB) | Preview
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 (1970, 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.
|Item Type:||MPRA Paper|
|Original Title:||Exploring foreign market access in government procurement|
|Keywords:||Government procurement, home-bias, market access, GPA, Japan, Switzerland|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H57 - Procurement
F - International Economics > F1 - Trade > F13 - Trade Policy; International Trade Organizations
F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade
|Depositing User:||Anirudh Shingal|
|Date Deposited:||25. May 2012 13:42|
|Last Modified:||19. Feb 2013 14:42|
Alesina, A., N. Roubini & G. Cohen (1997). Political Cycles and the Macroeconomy, Cambridge, MA: MIT Press.
Allison, P.D. & R. Waterman (2002). 'Fixed-effects Negative Binomial Regression Models,' Sociological Methodology 32:1, 247-265.
Baldwin, R. (1988). ‘Hysteresis in Import Prices: The Beachhead Effect,’ The American Economic Review 78:4, pp 773-785.
Baldwin, R.E. (1970). Non-tariff Distortions of International Trade, Washington, DC: Brookings.
Baldwin, R.E. (1984). 'Trade policies in developed countries,' in Jones, R., Kenen, P. (Eds.), Handbook of International Economics, North-Holland, Amsterdam.
Baldwin, R. & J. Harrigan (2008). ‘Zeroes, Quality and Space: Trade Theory and Trade Evidence,’ NBER Working Paper 13214, March.
Baldwin, R. & P. Krugman (1989). ‘Persistent trade effects of large exchange rate shocks,’ The Quarterly Journal of Economics 104:4, pp 635-654.
Blanchard, O. & J. Wolfers (2000). 'The Role of Shocks and Institutions in the Rise of European Unemployment: The Aggregate Evidence, 1999 Harry Johnson Lecture,' Economic Journal 100, C1-33.
Branco, F. (1994). ‘Favouring Domestic Firms in Procurement Contracts,’ Journal of International Economics 37: 65-80.
Brenton, P. (2001). ‘What are the limits to economic integration?’ Centre for European Policy Studies, Working Document No. 177, November.
Breton, A. & P. Salmon (1995). ‘Are Discriminatory Procurement Policies Motivated by Protectionism?’ Kyklos 49: 47-68.
Brülhart M. & F. Trionfetti (2001). 'Industrial Specialisation and Public Procurement: Theory and Empirical Evidence,' Journal of Economic Integration 16:1, 106-127.
Burguet, R. & Y. Che (2004). 'Competitive Procurement with Corruption,' The RAND Journal of Economics 35(1): 50-68.
Burguet, R. & M. Perry (2000). ‘Bribery and Favouritism by Auctioneers in Sealed Bid Auctions,’ Mimeo, Rutgers University & Institut d'Analisi Economica (CSIC).
Cameron, A.C. & P.K. Trivedi (1986). 'Econometric models based on count data: Comparisons and applications of some estimators and tests,' Journal of Applied Econometrics, 1, 29-53.
Campa, J.M. (2004). ‘Exchange rates and trade: How important is hysteresis in trade?’ European Economic Review 48, 527-548.
Chen, X. (1995). ‘Directing Government Procurement as an Incentive of Production,’ Journal of Economic Integration 10: 130-40.
Compte, O., A. Lambert-Mogiliansky & T. Verdier (2005). 'Corruption and Competition in Procurement Auctions,' The RAND Journal of Economics 36(1): 1-15.
Coviello, D. & S. Gagliarducci (2010). ‘Tenure in Office and Public Procurement,’ mimeo.
Diermeier, D. & A. Merlo (1999). ‘A Structural Model of Government Formation,’ Mimeo, Northwestern University.
Drazen, A. (2000). Political Economy in Macroeconomics, Princeton: Princeton University Press.
European Commission (1997). Single Market Review: Public Procurement. Kogan Page, London.
Evenett, S. J. & B. Hoekman (2004). ‘International disciplines on government procurement: A review of economic analyses and their implications,’ mimeo.
Evenett, S. J. & B. Hoekman (2005). ‘Government Procurement: Market Access, Transparency, and Multilateral Trade Rules,’ European Journal of Political Economy 21:1 pp 163-183.
Evenett, S.J. & A. Shingal (2006). ‘Monitoring Implementation: Japan and the WTO Agreement on Government Procurement,’ in Economic Development & Multilateral Trade Cooperation, The World Bank.
Evenett, S.J. (2009a). ‘What can be learned from crisis-era protectionism? An initial assessment,’ Business & Politics, The Berkeley Electronic Press 11: 3 article 4.
Evenett, S.J. (2009b). ‘The emerging contours of crisis-era protectionism,’ in Broken promises: A G-20 summit, Second GTA Report, CEPR, London.
Fukuyama, F (1995). Trust: The Social Virtues and the Creation of Prosperity, Free Press, New York.
Goldman, E., J. Rocholl & J. So (2009). ‘Political Connections and the Allocation of Procurement Contracts,’ Mimeo.
Gourieroux, C., A. Montfort & A. Trognon (1984). 'Pseudo maximum likelihood methods: Applications to Poisson models,' Econometrica, 52, 701-20.
Greene, W.H. (1994). 'Accounting for excess zeros and sample selection in Poisson and negative binomial models,' Stern School of Business, New York University, Working Paper 94-10.
Guimarães (2008). 'The Fixed-effects Negative Binomial Model Revisited,' Economics Letters 99:1, 63-66.
Hillberry, R. & D. Hummels (2002). ‘Explaining home bias in consumption: The role of intermediate input trade,’ NBER Working Paper 9020.
Hoekman, B. & P. Mavroidis (1997). Law and Policy in Public Purchasing: The WTO Agreement on Government Procurement, University of Michigan Press.
Hyytinen, A., S. Lundberg & O. Toivanen (2009). ‘Politics and Procurement: Evidence from Cleaning Contracts,’ Mimeo.
IIDE (2009). Trade in Services Database, Institute for International & Development Economics.
IMF (various years). International Financial Statistics.
Khorana S. and A. Shingal (2008). ‘Barriers to Government Procurement in the European Union,’ in Strategies and Preparedness for Trade and Globalization in India, UNCTAD (eds.), February.
Laffont, J.J. & J. Tirole (1991).’Auction Design and Favouritism,’ International Journal of Industrial Organization 9: 9-42.
Long, J.S. (1997). Regression Models for Categorical and Limited Dependent Variables, Sage, Thousand Oaks.
Long, J. S. & J. Freese (2005). Regression Models for Categorical Outcomes Using Stata, Second Edition. College Station, TX: Stata Press.
Mastanduno, M. (1991). 'Do relative gains matter? America’s response to Japanese industrial policy,' International Security 16: 73–113.
McAfee, R. P. & J. McMillan (1989). ‘Government Procurement and International Trade,' Journal of International Economics 26: 291-308.
Naegelen, F. & M. Mougeot (1998). 'Discriminatory public procurement policy and cost reduction incentives,' Journal of Public Economics 67: 349–367.
Nicita, A. and M. Olarreaga (2006). 'Trade, Production and Protection 1976-2004,' World Bank Economic Review 21(1).
OECD (2002). ‘The Size of Government Procurement Markets,’ available at www.oecd.org/dataoecd/34/14/1845927.pdf.
OECD (various years). STAN database, ‘StatExtracts’ (http://stats.oecd.org/Index.aspx)
OCED (various years). Trade in Services by Service Category database, ‘StatExtracts’ (http://stats.oecd.org/Index.aspx).
Persson, T. (2002). 'Do Political Institutions Shape Economic Policy?,' Econometrica 70(3): 883-905.
Persson, T. & G. Tabellini (1990). Macroeconomic Policy, Credibility and Politics, London: Hardwood Academy Publishers.
Persson, T. & G. Tabellini (2000). 'Political Institutions and Economic Policy Outcomes: What Are the Stylized Facts? Mimeo, Institute for International Economic Studies.
Rauch, J (1996). ‘Networks versus Markets in International Trade,’ Working Paper 5617, NBER, Cambridge, MA.
Ravn, M.O., S. Schmitt-Grohé & M. Uribe (2008). ‘Explaining the Effects of Government Spending Shocks on Consumption and the Real Exchange Rate,’ Mimeo.
Rogoff, K. (1990). 'Equilibrium Political Budget Cycles,' American Economic Review 80: 21-36.
Rogoff, K. & A. Silbert (1988). 'Elections and macroeconomic political cycles,' Review of Economic Studies 55: 1-16.
Rose-Ackerman, S. (1975). ‘The Economics of Corruption,’ Journal of Public Economics 4: 187-203.
Rose-Ackerman, S. (1978). Corruption: A Study in Political Economy, New York: Academic Press.
Rothenberg, J. (1993). “Comment” in Jim Leitzel & Jean Tirole eds. Incentives in Procurement Contracting, Boulder: Westview Press.
Santos Silva, J. M. C. and S. Tenreyro (2006). ‘The log of gravity,’ The Review of Economics and Statistics 88 (4): 641- 658.
Schooner S.L. & C.R. Yukins (2009). ‘Public procurement: Focus on people, value for money and systemic integrity, not protectionism,’ in Richard Baldwin & Simon Evenett eds. The collapse of global trade, murky protectionism, and the crisis: Recommendations for the G-20, VoxEU; available at http://www.voxeu.org/index.php?q=node/3199
Shi, M. & J. Svensson (2000). 'Conditional Political Business Cycles: Theory and Evidence,' Mimeo, Institute for International Economic Studies.
Shingal, A. (2009). ‘Three Essays on Trade in Services: Exploring tradability, regional trade and government procurement of services,’ unpublished DPhil dissertation, University of Sussex.
Shingal, A. (2011). ‘The WTO's Agreement on Government Procurement: Whither market access?’ World Trade Review, 10:4, 1-23.
Tanzi, V., & L. Schuknecht (2000). Public Spending in the 20th Century: A Global Perspective, Cambridge, U.K.: Cambridge University Press.
Trionfetti, F. (2000). 'Discriminatory public procurement and international trade,' World Economy 23: 57–76.
UN Comtrade (various years).
UNIDO (2010). INDSTAT4 database.
UNSC (2002). ‘GATS, CPC Version 1.1,’ GNS/W/120. (http://unstats.un.org/unsd/statcom/doc02/cpc.pdf)
Vagstad, S. (1995). 'Promoting fair competition in public procurement,' Journal of Public Economics 58: 283–307.
Vuong, Q.H. (1989). 'Likelihood ratio tests for model selection and non-nested hypotheses,' Econometrica, 57, 307-33.
Weichenrieder, J.A. (2001). 'Public procurement in the presence of capital taxation,' Regional Science and Urban Economics 31: 339–353.
World Bank (various years). World Development Indicators.
World Trade Organization (various years). ‘Statistics reports under Article XIX: 5 of the GPA,’ Committee on Government Procurement. (http://www.wto.org/english/tratop_e/gproc_e/gpstat_e.htm)
Available Versions of this Item
Foreign market access in government procurement. (deposited 15. Aug 2011 17:52)
Exploring foreign market access in government procurement. (deposited 13. May 2012 17:22)
- Exploring foreign market access in government procurement. (deposited 25. May 2012 13:42) [Currently Displayed]
- Exploring foreign market access in government procurement. (deposited 13. May 2012 17:22)