Political donations, public procurement and government efficiency
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216208%3A11220%2F21%3A10430115" target="_blank" >RIV/00216208:11220/21:10430115 - isvavai.cz</a>
Result on the web
<a href="https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=fgEL6W1wqj" target="_blank" >https://verso.is.cuni.cz/pub/verso.fpl?fname=obd_publikace_handle&handle=fgEL6W1wqj</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1016/j.worlddev.2021.105666" target="_blank" >10.1016/j.worlddev.2021.105666</a>
Alternative languages
Result language
angličtina
Original language name
Political donations, public procurement and government efficiency
Original language description
Public procurement markets are worth 10-15% of global GDP. Recent empirical evidence suggests that firms' political donations can induce important distortions in the allocation of public procurement contracts. In this article, we employ a non-parametric efficiency model to study the implications of such distortions for the regional governments' efficiency. Using a unique dataset covering the Czech regions over the 2007-2017 period, we find that the efficiency of public good provision is lower when a larger share of public procurement contracts is awarded to firms donating to the party in power ('party donors') - even when we account for quality differences in public goods provision. We link the dependence on politically connected firms to the institutional design of the procurement allocation process (i.e. the use of less restrictive and less open allocation procedures), which helps explaining the mechanics behind the observed decrease in efficiency.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50201 - Economic Theory
Result continuities
Project
—
Continuities
I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace
Others
Publication year
2021
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
World Development
ISSN
0305-750X
e-ISSN
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Volume of the periodical
2021
Issue of the periodical within the volume
148
Country of publishing house
GB - UNITED KINGDOM
Number of pages
11
Pages from-to
105666
UT code for WoS article
000707398800003
EID of the result in the Scopus database
2-s2.0-85113596469