EconPapers    
Economics at your fingertips  
 

Public Procurement and Rent-Seeking: The Case of Paraguay

Emmanuelle Auriol (), Stephane Straub () and Thomas Flochel ()

World Development, 2016, vol. 77, issue C, 395-407

Abstract: A model of entrepreneurial choices in an economy with a corrupt public procurement sector is built, providing predictions along two dimensions. First, corrupt public institutions operate by offering contracts without competition and more corrupt entities channel larger share of their budget in this way. Second, these firms 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: procurement; corruption; rent-seeking; development (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0305750X1530098X
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Public Procurement and Rent-Seeking: The Case of Paraguay (2015) Downloads
Working Paper: Public Procurement and Rent-Seeking: The Case of Paraguay (2011) Downloads
Working Paper: Public Procurement and Rent-Seeking: The Case of Paraguay (2011) Downloads
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:eee:wdevel:v:77:y:2016:i:c:p:395-407

DOI: 10.1016/j.worlddev.2015.09.001

Access Statistics for this article

World Development is currently edited by O. T. Coomes

More articles in World Development from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2020-02-26
Handle: RePEc:eee:wdevel:v:77:y:2016:i:c:p:395-407