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The impact of public procurement on foreign trade: the case of Estonia

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  • Kaarel Kilvits
  • Alari Purju

Abstract

This article analyses the impact of public procurement policies on the foreign trade of Estonia. The trade regime of Estonia was already very liberal before it joined the EU in 2004. However, academic research has not examined whether discriminating public procurement was used as a Nontariff Barrier (NTB) in Estonia prior to accession. The task of the current analysis is to evaluate the possible impact of public procurement policy on trade patterns. Two series of indicators are used for this purpose. The first series characterises the impact of public sector purchases on domestic production and the imports of different industries. When the results suggest that the sector is highly dependent on public procurement, we consider a second set of indicators. The second series shows the position of different industries in international and domestic competition. The findings of this paper suggest that public procurement was not used as a NTB by Estonia in the 1990s.

Suggested Citation

  • Kaarel Kilvits & Alari Purju, 2009. "The impact of public procurement on foreign trade: the case of Estonia," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 4(1/2), pages 159-177.
    • Handle: RePEc:ids:ijpubp:v:4:y:2009:i:1/2:p:159-177
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