Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia

Sean Lewis-Faupel, Yusuf Neggers, Benjamin Olken and Rohini Pande

American Economic Journal: Economic Policy, 2016, vol. 8, issue 3, 258-83

Abstract: This paper examines whether electronic procurement (e-procurement), which increases access to information and reduces personal interactions with potentially corrupt officials, improves procurement outcomes. We develop unique datasets from India and Indonesia and use variation in adoption of e-procurement within both countries. We find no evidence of reduced prices but do find that e-procurement leads to quality improvements. In India, where we observe quality directly, e-procurement improves road quality, and in Indonesia, e-procurement reduces delays. Regions with e-procurement are more likely to have winners come from outside the region. On net, the results suggest that e-procurement facilitates entry from higher quality contractors.

JEL-codes: D72 H54 H57 L12 O17 O22 R42 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/pol.20140258
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Citations: View citations in EconPapers (73)

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Working Paper: Can Electronic Procurement Improve Infrastructure Provision? Evidence From Public Works in India and Indonesia (2014)
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