Working Paper: CEPR ID: DP1502
Authors: Bernard Hoekman
Abstract: This paper assesses existing multilateral rules on government procurement from a developing country perspective. It summarizes the economics of discriminatory procurement and investigates to what extent data on procurement reported by members of the WTO Government Procurement Agreement (GPA) reveal changes in sourcing patterns and national purchasing practices over the 1983?92 period. Available data suggest that changes in procurement practices ? or the lack thereof ? are largely consistent with what theory would predict. Large countries have not been induced to change sourcing patterns, while small countries appear to have become more open. As most developing countries are relatively small in economic terms, this suggests that there may be potentially large welfare gains for developing countries from accession to the GPA.
Keywords: government procurement; trade negotiations; world trade organization
JEL Codes: F13; H57
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| GPA membership (F53) | procurement behavior of small countries (H57) |
| discriminatory procurement practices (H57) | inferior welfare outcomes globally (D69) |
| GPA rules adherence (F53) | overall welfare (I31) |