Working Paper: CEPR ID: DP13266
Authors: Benedikt Dengler; Bernard Hoekman
Abstract: This paper presents novel reduced form evidence on the association between international trade agreements that include disciplines on public procurement practices reflected in the WTO Agreement on Government Procurement (GPA) and preferential trade agreements (PTAs) and public sector imports following the 2008 financial crisis. The results are suggestive of such international disciplines acting as an effectivecommitment device: GPA membership is associated with a significantly higher import share following the crisis than is observed for countries that are not members. We also find evidence that the GPA and PTAs that cover public procurement are partial substitutes.
Keywords: trade agreements; commitment; public procurement; WTO Government Procurement Agreement
JEL Codes: F13; F15; H57
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| GPA membership (F53) | public sector openness (L32) |
| GPA membership (F53) | public procurement practices (H57) |
| GPA membership (F53) | public import penetration levels post-crisis (F65) |
| PTAs with procurement provisions (H57) | public sector openness (L32) |