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Does the WTO Government Procurement Agreement Deliver What It Promises?

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  • ONUR TAŞ, BEDRI KAMIL
  • DAWAR, KAMALA
  • HOLMES, PETER
  • TOGAN, SÜBIDEY

Abstract

We examine the impact of the World Trade Organization (WTO) Government Procurement Agreement (GPA) on government procurement practices in the European Union (EU). We analyse empirically whether the WTO GPA is effective in promoting non-discriminatory, open, transparent, competitive, and cost-effective government procurement. To study this question, we use a unique data set recently released by the EU, covering more than three million tenders conducted in the European Economic Area, Switzerland, and Macedonia during the years 2006–2016. We find that the WTO GPA promotes competition by increasing the probability of awarding a contract to a foreign firm. In addition, the WTO GPA significantly lowers corruption risk by decreasing the number of contracts with single bidders, and by decreasing total number of wins by a single firm. Finally, the WTO GPA fosters cost-effective public procurement by lowering the probability that the procurement price is higher than estimated cost.

Suggested Citation

  • Onur Taş, Bedri Kamil & Dawar, Kamala & Holmes, Peter & Togan, Sübidey, 2019. "Does the WTO Government Procurement Agreement Deliver What It Promises?," World Trade Review, Cambridge University Press, vol. 18(4), pages 609-634, October.
    • Handle: RePEc:cup:wotrrv:v:18:y:2019:i:4:p:609-634_3
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    Cited by:

    1. Tania Ghossein & Bernard Hoekman & Anirudh Shingal, 2021. "Public Procurement, Regional Integration, and the Belt and Road Initiative [How China Got Sri Lanka to Cough Up a Port]," The World Bank Research Observer, World Bank, vol. 36(2), pages 131-163.
    2. Ari Van Assche & Ali Arsalan Pasha & Lucian Cernat & Hinrich Voss, 2024. "From the editor – Governments as buyers: the international business implications of public procurement," Journal of International Business Policy, Palgrave Macmillan, vol. 7(2), pages 133-146, June.
    3. Dengler, Benedikt, 2018. "The WTO Government Procurement Agreement as a Commitment Device: A First Appraisal," CEPR Discussion Papers 13266, C.E.P.R. Discussion Papers.

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