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Public Procurement and the Private Business Sector : Evidence from Firm-Level Data

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  • Ghossein,Tania
  • Islam,Asif Mohammed
  • Saliola,Federica

Abstract

The quality of the public procurement system of an economy can have far-reaching effects on the private sector. This paper empirically explores several of these effects using two rich data sets. An overall indicator of public procurement quality is created from the World Bank?s Benchmarking Public Procurement project that is then combined with firm-level data from the World Bank Enterprise Surveys. The analysis includes more than 59,000 firms spanning more than 109 economies. The paper finds that firms in economies with good public procurement systems are more likely to participate in public procurement, face lower losses from shipping to domestic markets, and experience lower incidence of bribery than economies with poor public procurement systems. Similarly, better public procurement systems are positively correlated with more engagement in innovation, research and development, international certification, foreign technology adoption, and online connectivity.

Suggested Citation

  • Ghossein,Tania & Islam,Asif Mohammed & Saliola,Federica, 2018. "Public Procurement and the Private Business Sector : Evidence from Firm-Level Data," Policy Research Working Paper Series 8575, The World Bank.
    • Handle: RePEc:wbk:wbrwps:8575
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    Citations

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    Cited by:

    1. Bedri Kamil Onur Tas, 2020. "Effect of public procurement regulation on competition and cost-effectiveness," Journal of Regulatory Economics, Springer, vol. 58(1), pages 59-77, August.
    2. Mary Andika & Mike Iravo & Noor Ismael, 2021. "Influence of Competitive Tendering on the Performance of Devolved System of Governments in Kenya," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 7(5), pages 52-57, July.
    3. 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.
    4. Sevdalina Hristova, 2022. "The Impact of the Public Procurement System Reform on Bulgarian Small and Medium-Sized Enterprises," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 6, pages 172-184.
    5. Bedri Kamil Onur Tas, 2020. "Effect of Public Procurement Regulation on Competition and Cost-Effectiveness," RSCAS Working Papers 2020/36, European University Institute.
    6. Munaku D. Mwangi & Wycliffe N. Arani, 2021. "Influence of E-Procurement on the Performance of State Corporations in Kenya," International Journal of Management Science and Business Administration, Inovatus Services Ltd., vol. 7(6), pages 45-51, September.

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