Politics, Policies and Public Procurement Efficiency: A Quantitative Study of 25 European Countries
DOI:
https://doi.org/10.4335/14.3.537-558(2016)Keywords:
Public Procurement, Efficiency, EU Member States, Data Envelopment AnalysisAbstract
Public procurements are accounted for nearly one fifth of Gross Domestic Product in the European Union. Accordingly, the efficiency of public procurements has received immense attention of scholars and practitioners in the last few decades, particularly in the field of measuring a cross-country efficiency among the EU Member States. Nevertheless, the extant matrix is based solely on the outputs, thus capturing only a portion of determinants affecting the efficiency. Up to date, very little has been done in comparing the input-output efficiency. This paper aims to develop a set of input and output determinants of public procurement efficiency and compare the efficiency of public procurements of EU Member States. The results indicate that the efficiency based on input-output analysis significantly differs from any current analysis of procurement efficiency.
References
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Gupta, S. (2002) Competition and collusion in a government procurement auction market, Atlantic Economic Journal, 30(1), pp. 13-25.
Hessami, Z. (2014) Political corruption, public procurement, and budget composition: Theory and evidence from OECD countries, European Journal of Political Economy, 34, pp. 372-389.
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Jiménez, F., Villoria, M. & Quesada, M. G. (2012) Badly designed institutions, informal rules and perverse incentives: Local government corruption in Spain, Lex Localis – Journal of Local-Self Government, 10(4), 363-381.
Jovanovic, P., Joksimovic, N. Z., & Milosavljević, M. S. (2013) The Efficiency of Public Procurement Centralization: Empirical Evidence from Serbian Local Self-Governments, Lex Localis – Journal of Local-Self Government, 11(4), pp. 883-899.
Kostić, S. C., Okanović, M., Milosavljević, M. & Vukmirović, J. (2013) Antecedents of Citizens' Satisfaction with Local Administration in Serbia, Transylvanian Review of Administrative Sciences, 9(40), pp. 22-34.
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Langbein, L., & Knack, S. (2010) The worldwide governance indicators: six, one, or none?, The Journal of Development Studies, 46(2), pp. 350-370.
Lennerfors, T. T. (2007) The transformation of transparency–on the act on public procurement and the right to appeal in the context of the war on corruption, Journal of Business Ethics, 73(4), pp. 381-390.
Mackenbach, J. P., & McKee, M. (2015) Government, politics and health policy: A quantitative analysis of 30 European countries, Health Policy, 119(10), pp. 1298-1308.
McAfee, R. P., & McMillan, J. (1989) Government procurement and international trade, Journal of International Economics, 26(3), pp. 291-308.
Melyn, W., & Moesen, W. (1991) Towards a synthetic indicator of macroeconomic performance: unequal weighting when limited information is available, Public Economics Research Papers, 17, pp. 1-24.
Milosavljević, M. & Benković, S. (2009) Modern Aspects of Public Private Partnership, International Cross-industry Journal, Perspectives of Innovations, Economics and Business, 3, pp. 25-28.
Mitrović, Z., Vujošević, M., & Savić, G. (2015) Data Envelopment Analysis for Evaluating Serbia’s Health Care System, Management, 75, pp. 39-46.
Mukhopadhyay, B. (2011) Evaluating Public Procurement, Review of Market Integration, 3(1), pp. 21-68.
Naegelen, F., & Mougeot, M. (1998) Discriminatory public procurement policy and cost reduction incentives, Journal of Public Economics, 67(3), pp. 349-367.
O'Donnell, G. A. (2004) Why the rule of law matters, Journal of Democracy, 15(4), pp. 32-46.
Panayiotou, N. A., Gayialis, S. P., & Tatsiopoulos, I. P. (2004) An e-procurement system for governmental purchasing, International Journal of Production Economics, 90(1), pp. 79-102.
Peck, F., & Cabras, I. (2011) The impact of local authority procurement on local economies: the case of Cumbria, North West England, Public Policy and Administration, 26(3), pp. 307-331.
Piera, C., Roberto, C., Giuseppe, C., & Teresa, M. (2014) E-procurement and E-supply Chain: Features and Development of E-collaboration, IERI Procedia, 6, pp. 8-14.
Pîrvu, D., & Bâldan, C. (2013) Access to the EU Public Procurement Market: Are There Disparities Based on the Origin of Economic Operators?, Journal of Economic Issues, 47(3), pp. 765-780.
Ronchi, S., Brun, A., Golini, R., & Fan, X. (2010) What is the value of an IT e-procurement system?, Journal of Purchasing and Supply Management, 16(2), pp. 131-140.
Schapper, P. R., Malta, J. V., & Gilbert, D. L. (2006) An analytical framework for the management and reform of public procurement, Journal of Public Procurement, 6(1/2), pp. 1-26.
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Shadbegian, R. J. (1999) Fiscal federalism, collusion, and government size: evidence from the states, Public Finance Review, 27(3), pp. 262-281.
Søreide, T. (2002) Corruption in public procurement. Causes, consequences and cures (Bergen: Chr. Michelsen Intitute).
Strejcek, G., & Theil, M. (2003) Technology push, legislation pull? E-government in the European Union, Decision Support Systems, 34(3), pp. 305-313.
Thai, K. V. (2001) Public procurement re-examined, Journal of Public Procurement, 1(1), pp. 9-50.
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Toktaş-Palut, P., Baylav, E., Teoman, S., & Altunbey, M. (2014) The impact of barriers and benefits of e-procurement on its adoption decision: An empirical analysis, International Journal of Production Economics, 158, pp. 77-90.
Uttam, K., & Roos, C. L. L. (2015) Competitive dialogue procedure for sustainable public procurement, Journal of Cleaner Production, 86, pp. 403-416.
Van Long, N., & Stähler, F. (2009) A contest model of liberalizing government procurements, European Journal of Political Economy, 25(4), pp. 479-488.
Vecchiato, R., & Roveda, C. (2014) Foresight for public procurement and regional innovation policy: The case of Lombardy, Research Policy, 43(2), pp. 438-450.
Verschelde, M., & Rogge, N. (2012) An environment-adjusted evaluation of citizen satisfaction with local police effectiveness: Evidence from a conditional Data Envelopment Analysis approach, European Journal of Operational Research, 223(1), pp. 214-225.
Walker, H., & Brammer, S. (2012) The relationship between sustainable procurement and e-procurement in the public sector, International Journal of Production Economics, 140(1), pp. 256-268.
Weiss, F. (1993). Public procurement in European community law (Vol. 4) (London: Athlone Press).
World Trade Organization (1996) Singapore Ministerial Declaration. WT/MIN(96)/DEC (Geneva: WTO).
Wu, F., Zsidisin, G., & Ross, A. D. (2007) Antecedents and outcomes of e-procurement adoption: an integrative model, Engineering Management, IEEE Transactions on, 54(3), pp. 576-587.</span></p>
Atkinson, A. B. & Brandolini, A. (2001) Promise and pitfalls in the use of" secondary" data-sets: Income inequality in OECD countries as a case study, Journal of Economic Literature, 39(3), pp. 771-799.
Bovis, C. H. (2013) The challenges of public procurement reform in the single market of the European Union, ERA Forum, 14(1), pp. 35-57.
Brezovnik, B., Oplotnik, Ž. J., & Vojinović, B. (2015) (De) Centralization of Public Procurement at the Local Level in the EU, Transylvanian Review of Administrative Sciences, 11(46), pp. 37-52.
Cacace, M., Ettelt, S., Mays, N., & Nolte, E. (2013) Assessing quality in cross-country comparisons of health systems and policies: Towards a set of generic quality criteria, Health Policy, 112(1), pp. 156-162.
Caldwell, N., Walker, H., Harland, C., Knight, L., Zheng, J., & Wakeley, T. (2005) Promoting competitive markets: The role of public procurement, Journal of Purchasing and Supply Management, 11(5), pp. 242-251.
Celentani, M., & Ganuza, J. J. (2002) Corruption and competition in procurement, European Economic Review, 46(7), pp. 1273-1303.
Charnes, A., Cooper, W. W. & Rhodes, E. (1978) Measuring the efficiency of decision making units, European Journal of Operational Research, 2(6), pp. 429-444.
Dastidar, K. G. & Mukherjee, D. (2014) Corruption in delegated public procurement auctions, European Journal of Political Economy, 35, pp. 122-127.
Edler, J., &.Uyarra, E. (2013) Public procurement of innovation. In: Brown, L. & Osborne, S. (eds.) The Handbook of Innovation and Change in Public Sector Services (Cheltenham: Edward Elgar), pp. 224–237.
Engström, A., Wallström, Å., & Salehi-Sangari, E. (2009) Implementation of public e-procurement in Swedish government entities, International Multiconference on Computer Science and Technology, 4, pp. 315-319.
Erridge, A., & McIlroy, J. (2002) Public procurement and supply management strategies, Public Policy and Administration, 17(1), pp. 52-71.
Estache, A., & Iimi, A. (2011) (Un)bundling infrastructure procurement: Evidence from water supply and sewage projects, Utilities policy, 19(2), pp. 104-114.
European Commission (2015a) Your Europe: Rules and Procedures, available at http://europa.eu/youreurope/business/public-tenders/rules-procedures/index_en.htm, (December 14, 2015).
European Commission (2015b) The EU single market scoreboard: Performance per policy area – public procurement, available at: http://ec.europa.eu/internal_market/scoreboard/performance_per_policy_area/public_procurement/index_en.htm (December 14, 2015).
Evenett, S. J. & Hoekman, B. M. (2005) Government procurement: market access, transparency, and multilateral trade rules, European Journal of Political Economy, 21(1), pp. 163-183.
Falagario, M., Sciancalepore, F., Costantino, N., & Pietroforte, R. (2012) Using a DEA-cross efficiency approach in public procurement tenders, European Journal of Operational Research, 218(2), pp. 523-529.
Feng, Y. (1997) Democracy, political stability and economic growth, British Journal of Political Science, 27(03), pp. 391-418.
Finžgar, M. & Oplotnik, Ž. J. (2013) Comparison of fiscal decentralization systems in EU-27 according to selected criteria, Lex Localis – Journal of Local Self-Government, 11(3), pp. 651-672.
Gelderman, C. J., Ghijsen, P. W. T., & Brugman, M. J. (2006) Public procurement and EU tendering directives-explaining non-compliance, International Journal of Public Sector Management, 19(7), pp. 702-714.
Grega, M., & Nemec, J. (2015) Factors Influencing Final Price of Public Procurement: Evidence from Slovakia, Procedia Economics and Finance, 25, pp. 543-551.
Grødeland, Å. B. & Aasland, A. (2011) Fighting corruption in public procurement in post-communist states: Obstacles and solutions, Communist and Post-Communist Studies, 44(1), pp. 17-32.
Guccio, C., Pignataro, G., & Rizzo, I. (2014) Evaluating the efficiency of public procurement contracts for cultural heritage conservation works in Italy, Journal of Cultural Economics, 38(1), pp. 43-70.
Gupta, S. (2002) Competition and collusion in a government procurement auction market, Atlantic Economic Journal, 30(1), pp. 13-25.
Hessami, Z. (2014) Political corruption, public procurement, and budget composition: Theory and evidence from OECD countries, European Journal of Political Economy, 34, pp. 372-389.
Hoekman, B. (1998) Using international institutions to improve public procurement, The World Bank Research Observer, 13(2), pp. 249-269.
Jasko, O., Jovanovic, P., & Cudanov, M. (2015) Cost Efficiency of Public Procurement at Local Level: Chances for Improvement of Local Self-government and Public Enterprises in Serbia, Lex Localis – Journal of Local-Self Government, 13(3), pp. 789-807.
Jiménez, F., Villoria, M. & Quesada, M. G. (2012) Badly designed institutions, informal rules and perverse incentives: Local government corruption in Spain, Lex Localis – Journal of Local-Self Government, 10(4), 363-381.
Jovanovic, P., Joksimovic, N. Z., & Milosavljević, M. S. (2013) The Efficiency of Public Procurement Centralization: Empirical Evidence from Serbian Local Self-Governments, Lex Localis – Journal of Local-Self Government, 11(4), pp. 883-899.
Kostić, S. C., Okanović, M., Milosavljević, M. & Vukmirović, J. (2013) Antecedents of Citizens' Satisfaction with Local Administration in Serbia, Transylvanian Review of Administrative Sciences, 9(40), pp. 22-34.
Kukovič, S., Copus, C., Haček, M., & Blair, A. (2015) Direct mayoral elections in Slovenia and England: traditions and trends compared, Lex Localis – Journal of Local-Self Government, 13(3), pp. 693-714.
Langbein, L., & Knack, S. (2010) The worldwide governance indicators: six, one, or none?, The Journal of Development Studies, 46(2), pp. 350-370.
Lennerfors, T. T. (2007) The transformation of transparency–on the act on public procurement and the right to appeal in the context of the war on corruption, Journal of Business Ethics, 73(4), pp. 381-390.
Mackenbach, J. P., & McKee, M. (2015) Government, politics and health policy: A quantitative analysis of 30 European countries, Health Policy, 119(10), pp. 1298-1308.
McAfee, R. P., & McMillan, J. (1989) Government procurement and international trade, Journal of International Economics, 26(3), pp. 291-308.
Melyn, W., & Moesen, W. (1991) Towards a synthetic indicator of macroeconomic performance: unequal weighting when limited information is available, Public Economics Research Papers, 17, pp. 1-24.
Milosavljević, M. & Benković, S. (2009) Modern Aspects of Public Private Partnership, International Cross-industry Journal, Perspectives of Innovations, Economics and Business, 3, pp. 25-28.
Mitrović, Z., Vujošević, M., & Savić, G. (2015) Data Envelopment Analysis for Evaluating Serbia’s Health Care System, Management, 75, pp. 39-46.
Mukhopadhyay, B. (2011) Evaluating Public Procurement, Review of Market Integration, 3(1), pp. 21-68.
Naegelen, F., & Mougeot, M. (1998) Discriminatory public procurement policy and cost reduction incentives, Journal of Public Economics, 67(3), pp. 349-367.
O'Donnell, G. A. (2004) Why the rule of law matters, Journal of Democracy, 15(4), pp. 32-46.
Panayiotou, N. A., Gayialis, S. P., & Tatsiopoulos, I. P. (2004) An e-procurement system for governmental purchasing, International Journal of Production Economics, 90(1), pp. 79-102.
Peck, F., & Cabras, I. (2011) The impact of local authority procurement on local economies: the case of Cumbria, North West England, Public Policy and Administration, 26(3), pp. 307-331.
Piera, C., Roberto, C., Giuseppe, C., & Teresa, M. (2014) E-procurement and E-supply Chain: Features and Development of E-collaboration, IERI Procedia, 6, pp. 8-14.
Pîrvu, D., & Bâldan, C. (2013) Access to the EU Public Procurement Market: Are There Disparities Based on the Origin of Economic Operators?, Journal of Economic Issues, 47(3), pp. 765-780.
Ronchi, S., Brun, A., Golini, R., & Fan, X. (2010) What is the value of an IT e-procurement system?, Journal of Purchasing and Supply Management, 16(2), pp. 131-140.
Schapper, P. R., Malta, J. V., & Gilbert, D. L. (2006) An analytical framework for the management and reform of public procurement, Journal of Public Procurement, 6(1/2), pp. 1-26.
Schulten, T., Alsos, K., Burgess, P., & Pedersen, K. (2012) Pay and other social clauses in European public procurement. An overview on regulation and practices with a focus on Denmark, Germany, Norway, Switzerland and the United Kingdom, Dusseldorf (Dusseldorf: EPSU).
Shadbegian, R. J. (1999) Fiscal federalism, collusion, and government size: evidence from the states, Public Finance Review, 27(3), pp. 262-281.
Søreide, T. (2002) Corruption in public procurement. Causes, consequences and cures (Bergen: Chr. Michelsen Intitute).
Strejcek, G., & Theil, M. (2003) Technology push, legislation pull? E-government in the European Union, Decision Support Systems, 34(3), pp. 305-313.
Thai, K. V. (2001) Public procurement re-examined, Journal of Public Procurement, 1(1), pp. 9-50.
The World Justice Project (2015) World Justice Project Rule of Law Index 2015, available at: http://worldjusticeproject.org/sites/default/files/roli_2015_0.pdf (December 18, 2015).
Thomas, M. A. (2010) What do the worldwide governance indicators measure&quest, European Journal of Development Research, 22(1), pp. 31-54.
Toktaş-Palut, P., Baylav, E., Teoman, S., & Altunbey, M. (2014) The impact of barriers and benefits of e-procurement on its adoption decision: An empirical analysis, International Journal of Production Economics, 158, pp. 77-90.
Uttam, K., & Roos, C. L. L. (2015) Competitive dialogue procedure for sustainable public procurement, Journal of Cleaner Production, 86, pp. 403-416.
Van Long, N., & Stähler, F. (2009) A contest model of liberalizing government procurements, European Journal of Political Economy, 25(4), pp. 479-488.
Vecchiato, R., & Roveda, C. (2014) Foresight for public procurement and regional innovation policy: The case of Lombardy, Research Policy, 43(2), pp. 438-450.
Verschelde, M., & Rogge, N. (2012) An environment-adjusted evaluation of citizen satisfaction with local police effectiveness: Evidence from a conditional Data Envelopment Analysis approach, European Journal of Operational Research, 223(1), pp. 214-225.
Walker, H., & Brammer, S. (2012) The relationship between sustainable procurement and e-procurement in the public sector, International Journal of Production Economics, 140(1), pp. 256-268.
Weiss, F. (1993). Public procurement in European community law (Vol. 4) (London: Athlone Press).
World Trade Organization (1996) Singapore Ministerial Declaration. WT/MIN(96)/DEC (Geneva: WTO).
Wu, F., Zsidisin, G., & Ross, A. D. (2007) Antecedents and outcomes of e-procurement adoption: an integrative model, Engineering Management, IEEE Transactions on, 54(3), pp. 576-587.</span></p>
Published
2016-07-31
Issue
Section
Conference Paper (Annual Conference 2020)
