PUBLIC PROCUREMENT TRANSACTION COSTS: A COUNTRY-LEVEL ASSESSMENT BASED ON MICRODATA

Olga Balaeva, Andrei Yakovlev (), Yuliya Rodionova () and Daniil Esaulov ()
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Andrei Yakovlev: National Research University Higher School of Economics
Daniil Esaulov: National Research University Higher School of Economics

HSE Working papers from National Research University Higher School of Economics

Abstract: Public procurement cost evaluation is important both for procurement optimization at the company level and for evaluating the public procurement regulatory system. This paper presents a survey-based methodological approach to public procurement cost evaluation at the macro level. Our approach is based on a methodology for assessing the efficiency of public procurement developed by PwC for the European Union. The PwC methodology was adapted to developing and transitional economies and piloted on Russian data. Average costs of each type of procurement procedure implemented in 2016 were evaluated. A regression analysis of factors impacting public procurement cost evaluation revealed considerable differences between respondents who have and do not have experience with complex procurement procedures. Although the average overall costs of public procurements in Russia amounted to about 1% of the total value of concluded contracts, the figure stands at 6.6–8.1% for small purchases. This exceeds the economy from price decreases and calls for a need to simplify regulation of such procurements.

Keywords: public procurement; public procurement costs; public customers; suppliers. (search for similar items in EconPapers)
JEL-codes: D23 H57 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2018
New Economics Papers: this item is included in nep-cis, nep-reg and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in WP BRP Series: Public and Social Policy / PSP, December 2018, pages 1-38

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Persistent link: https://EconPapers.repec.org/RePEc:hig:wpaper:20/psp/2018

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