Impact of the Flexibility of Procurement Processes on Public Purchases in the Tackling of the Public Health Emergency Caused by COVID-19: Evidence from Brazil

Rodrigo Fernandez, Thais Waideman Niquito (), Gibran Silva Teixeira () and Andressa Mielke Vasconcelos ()
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Thais Waideman Niquito: Federal University of Rio Grande Do Sul
Gibran Silva Teixeira: Federal University of Rio Grande Do Sul
Andressa Mielke Vasconcelos: Economist at Sicredi Bank

Public Organization Review, 2024, vol. 24, issue 3, No 4, 823-843

Abstract: Abstract In order to speed up the purchases of essential products and services required by the public administration to tackle the sanitary crisis caused by COVID-19, the Brazilian federal government enacted laws No. 13,979 and No. 14,035 in 2020, exempting such items from the procurement process. This research aimed to investigate the impact of the flexibility in Brazilian law on government bids. For this purpose, a database composed of items acquired between January 2019 and December 2020 was built, and the empirical strategy was based on Difference-in-Differences models. The results indicate that the effect of this legal provision on the price of potentially affected items was an increase of approximately 5%. Some explanations for this price increase are due to the pressure of demand, changes in the strategic planning of companies and in the way they allocate their workers, which affect the costs of these companies.

Keywords: Procurement; Flexibilization of legislation; COVID-19 (search for similar items in EconPapers)
JEL-codes: D02 D73 H12 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s11115-023-00748-8

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