Public Procurement and Rent-Seeking: The Case of Paraguay

Emmanuelle Auriol, Stephane Straub and Thomas Flochel ()

No 8282, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: A model of entrepreneurial choices in an economy with a corrupt public procurement sector is built, providing predictions along two main dimensions. First, corruption is more frequent in sectors where public institutions are large buyers. Second, firms favoured with corrupt contracts enjoy extra returns, so that procurement related activities attract the best entrepreneurs. A large scale microeconomic database, including all public procurement operations over a 4 year period in Paraguay, amounting annually to approximately 6% of the country?s GDP, is then used to corroborate these predictions.

Keywords: Corruption; Development; Procurement; Rent-seeking (search for similar items in EconPapers)
JEL-codes: D72 D73 H57 O5 (search for similar items in EconPapers)
Date: 2011-03
New Economics Papers: this item is included in nep-ent
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
https://cepr.org/publications/DP8282 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Public Procurement and Rent-Seeking: The Case of Paraguay (2016)
Working Paper: Public Procurement and Rent-Seeking: The Case of Paraguay (2015)
Working Paper: Public Procurement and Rent-Seeking: The Case of Paraguay (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:8282

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP8282

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().