Economics at your fingertips  

Industrial Specialisation and Public Procurement: Theory and Empirical Evidence

Marius Brülhart and Federico Trionfetti

Journal of Economic Integration, 2001, vol. 16, 106-127


Public-sector purchases from private firms account for over 10 percent of GDP in most developed countries, and they are typically biased in favour of domestic suppliers. This paper explores the impact of discriminatory public procurement on the location of industries. Our main theoretical finding is that, in a setting with increasing returns and trade costs, home-biased procurement can override other determinants of industrial specialisation. Our empirical analysis underscores the significance of discriminatory procurement. Drawing on a cross-country, crossindustry data sample for the EU, we find that determinants of industry location such as factor endowments, market access and intermediate inputs are significant in sectors where public procurement is small, but they lose their significance in sectors where public procurement is important.

Keywords: Public Procurement; Industrial Specialisation; European Union (search for similar items in EconPapers)
JEL-codes: F12 F15 H57 (search for similar items in EconPapers)
Date: 2001
References: Add references at CitEc
Citations: View citations in EconPapers (16) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Industrial Specialisation and Public Procurement: Theory and Empirical Evidence (1998)
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:

Access Statistics for this article

Journal of Economic Integration is currently edited by Seongeun Kim

More articles in Journal of Economic Integration from Center for Economic Integration, Sejong University Contact information at EDIRC.
Bibliographic data for series maintained by Yunhoe Kim ().

Page updated 2022-03-27
Handle: RePEc:ris:integr:0156