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Economic Drivers of Public Procurement‐Related Protection

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  • Anne‐célia Disdier

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Lionel Fontagné

    (THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

  • Enxhi Tresa

    (THEMA - Théorie économique, modélisation et applications - CNRS - Centre National de la Recherche Scientifique - CY - CY Cergy Paris Université)

Abstract

Public procurement represents a substantial share of gross domestic product (GDP) in many countries, and is notoriously home-biased as a result of often opaque practices. However, little is known about the determinants of restrictions on public procurement policies. To explore this issue, we map information from the Global Trade Alert (GTA) database on regulatory obstacles to public procurement alongside international trade flows at the country pair-product level and applied bilateral tariffs. Considering the universe of restrictions introduced over the period 2009-2016 by importers on exporters and products, we highlight three novel facts. First, the main foreign providers are not the most targeted, suggesting long-term contractual relationships between buyers and sellers in public markets. Second, the ear of retaliation is alleviating the protectionist pressure in the importer country. Third, we document substitutability between public procurement restrictions and tariffs.

Suggested Citation

  • Anne‐célia Disdier & Lionel Fontagné & Enxhi Tresa, 2021. "Economic Drivers of Public Procurement‐Related Protection," PSE-Ecole d'économie de Paris (Postprint) halshs-03342598, HAL.
    • Handle: RePEc:hal:pseptp:halshs-03342598
    DOI: 10.1111/twec.13193
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    References listed on IDEAS

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    2. Mulabdic, Alen & Rotunno, Lorenzo, 2022. "Trade barriers in government procurement," European Economic Review, Elsevier, vol. 148(C).

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