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"New" econometric evidence for the Baldwin-Richardson (1972)/Miyagiwa (1991) theoretical predictions in government procurement

Shingal, Anirudh (2013): "New" econometric evidence for the Baldwin-Richardson (1972)/Miyagiwa (1991) theoretical predictions in government procurement.

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Abstract

Baldwin and Richardson (1972) and Miyagiwa (1991) laid out the conditions under which a home-bias in public procurement is rendered ineffective as a protectionist device. Since then there has been little empirical work on this subject. In this paper, we bridge this gap by building a new dataset from WTO notifications on domestic and foreign purchases by Japanese and Swiss governments at the sector level over 1990-2003 and use it to test the BRM theoretical predictions. Significantly, our empirical results support these theoretical predictions.

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