1. Economic drivers of public procurement‐related protection
- Author
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Anne-Célia Disdier, Lionel Fontagné, Enxhi Tresa, Paris School of Economics (PSE), École des Ponts ParisTech (ENPC)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-Université Paris 1 Panthéon-Sorbonne (UP1)-Centre National de la Recherche Scientifique (CNRS)-École des hautes études en sciences sociales (EHESS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), CY Cergy Paris Université (CY), Paris Jourdan Sciences Economiques (PJSE), Université Paris 1 Panthéon-Sorbonne (UP1)-École normale supérieure - Paris (ENS Paris), Université Paris sciences et lettres (PSL)-Université Paris sciences et lettres (PSL)-École des hautes études en sciences sociales (EHESS)-École des Ponts ParisTech (ENPC)-Centre National de la Recherche Scientifique (CNRS)-Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement (INRAE), Théorie économique, modélisation et applications (THEMA), CY Cergy Paris Université (CY)-Centre National de la Recherche Scientifique (CNRS), and Centre National de la Recherche Scientifique (CNRS)-CY Cergy Paris Université (CY)
- Subjects
Economics and Econometrics ,[QFIN]Quantitative Finance [q-fin] ,05 social sciences ,International economics ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,Protectionism ,Gross domestic product ,Procurement ,Accounting ,0502 economics and business ,Political Science and International Relations ,Economics ,050207 economics ,ComputingMilieux_MISCELLANEOUS ,Finance ,050205 econometrics - Abstract
International audience; 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.
- Published
- 2021