Economic drivers of public procurement‐related protection

Bibliographic Data

ID19061963
AuthorsAnne‐célia Disdier (0000-0002-0014-7091, Paris School of Economics‐INRAE Paris France), Lionel Fontagné (0000-0002-6450-3593, Bank of France CEPII and Paris School of Economics ‐ Banque de France Paris France, corresponding author), Enxhi Tresa (0000-0001-7898-4968, THEMA CY Cergy Paris Université CNRS Cergy France)
Year2021
Volume44
Issue11
Pages3072-3090
Publication date2021-09-02
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueWorld Economy (JOURNAL)
Journal identifiersISSN: 0378-5920 • E-ISSN: 1467-9701
PublisherWiley (PUBLISHER • GB)
DOI10.1111/twec.13193
OpenAlexW3197856948
LanguageEN
References cited15

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

Business · Commerce · Economic growth · Economics · Gross domestic product · International economics · International trade · Procurement · Protectionism · Global trade and economics · Public Procurement and Policy · Regulation and Compliance Studies · Marketing

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