1. Trade barriers in government procurement
- Author
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Lorenzo Rotunno, Alen Mulabdic, World Bank Group, Aix-Marseille Sciences Economiques (AMSE), École des hautes études en sciences sociales (EHESS)-Aix Marseille Université (AMU)-École Centrale de Marseille (ECM)-Centre National de la Recherche Scientifique (CNRS), This paper has benefited from support from the World Bank’s Umbrella Facility for Trade trust fund financed by the governments of the Netherlands, Norway, Sweden, Switzerland and the United Kingdom., ANR-17-EURE-0020,AMSE (EUR),Aix-Marseille School of Economics(2017), Lhuillier, Elisabeth, Aix-Marseille School of Economics - - AMSE (EUR)2017 - ANR-17-EURE-0020 - EURE - VALID, Ana Fernandes, Nadia Rocha, Michele Ruta, support from the World Bank’s Umbrella Facility for Trade trust fund financed by the governments of the Netherlands, Norway, Sweden, Switzerland and the United Kingdom., and ANR-11-IDEX-0001,Amidex,INITIATIVE D'EXCELLENCE AIX MARSEILLE UNIVERSITE(2011)
- Subjects
TRADE LIBERALIZATION ,Economics and Econometrics ,government procurement ,GRAVITY MODEL ,JEL: F - International Economics/F.F1 - Trade/F.F1.F15 - Economic Integration ,TRADE BARRIERS ,Resizing ,Gravity equation ,SERVICES TRADE ,Trade barrier ,[SHS.ECO] Humanities and Social Sciences/Economics and Finance ,Free trade ,GOVERNMENT PROCUREMENT ,INPUT-OUTPUT TABLE ,Government procurement ,JEL: F - International Economics/F.F1 - Trade/F.F1.F14 - Empirical Studies of Trade ,trade agreements ,International economics ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,Transparency (behavior) ,gravity equation ,Gravity model of trade ,TRADE AGREEMENTS ,JEL: H - Public Economics/H.H5 - National Government Expenditures and Related Policies/H.H5.H57 - Procurement ,JEL: F - International Economics/F.F1 - Trade/F.F1.F13 - Trade Policy • International Trade Organizations ,Business ,Finance - Abstract
This paper estimates trade barriers in government procurement, a market that accounts for 12 percent of world GDP. Using data from inter-country input-output tables in a gravity model, the paper finds that home bias in government procurement is significantly higher than in trade between firms. However, this difference has been shrinking over time. Results also show that trade agreements with provisions on government procurement increase cross-border flows of services, whereas the effect on goods is small and not different from that in private markets. Provisions containing transparency and procedural requirements drive the liberalizing effect of trade agreements.
- Published
- 2021