Small fish in a big (local) pond: EU directives, market concentration, and SME success in public procurement

Samielle Drake ()
Additional contact information
Samielle Drake: Department of Economics, Umeå University, Postal: Department of Economics, Umeå University, S 901 87 Umeå, Sweden, https://www.umu.se/handelshogskolan

No 1034, Umeå Economic Studies from Umeå University, Department of Economics

Abstract: This study examines the impact of local market concentration on the participation and success of small and medium enterprises (SMEs) in Swedish municipal cleaning service procurement auctions. A 10 percentage point reduction in the joint market share of the four largest firms (CR4), while maintaining a constant Herfindahl-Hirschman Index (HHI), results in a 7.5% increase in SME participation and raises the likelihood of an SME winning by 2.4%. Furthermore, the 2014 revisions to the EU public procurement directives mitigated the adverse effects of market concentration. However, despite the increase in participation, there is no evidence that the success rates of SMEs improved following the implementation of the revised EU directives.

Keywords: Public Procurement; Market Concentration; SMEs; Competition; Regulations (search for similar items in EconPapers)
JEL-codes: D44 H57 L13 L33 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2025-03-11
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.usbe.umu.se/ues/ues1034.pdf Full text (application/pdf)

Related works:
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:hhs:umnees:1034

Access Statistics for this paper

More papers in Umeå Economic Studies from Umeå University, Department of Economics Department of Economics, Umeå University, S-901 87 Umeå, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by David Skog ().