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Competition effects in EU external aid supply tenders funded with the Pre-accession and Neighbourhood instruments

Luis Mario García Lafuente () and Asunción Mochón Sáez ()
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Luis Mario García Lafuente: Department of Applied Economics and History of Economics, UNED
Asunción Mochón Sáez: Department of Applied Economics and History of Economics,UNED

Empirica, 2022, vol. 49, issue 2, No 8, 484 pages

Abstract: Abstract This paper investigates empirically the competition effects on procurement costs for Europe Aid funded supply tenders in countries benefiting from the EU Pre-accession (IPA) and Neighbourhood (ENI) financial instruments. We use a dataset created and curated by us from supply tender dossiers published by Europe Aid. We determine a reference price for each procured lot based on the contracting authority’s requirement to establish a participation tender guarantee. We estimate controlling for potential endogeneity how the entry of new bidders in the tendering procedure affects procurement cost savings regarding this reference price. Finally, we discuss the expected additional savings in the management of these funds that may be obtained by further promoting competition.

Keywords: Procurement auction; Competition effects; Price signaling; Official development assistance (search for similar items in EconPapers)
JEL-codes: D44 D82 F35 H57 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s10663-021-09518-5

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