Public procurement and formal employment of small and medium sized enterprises: evidence from China

Xinheng Li

Applied Economics Letters, 2025, vol. 32, issue 12, 1704-1708

Abstract: Using the World Bank Survey data, this study analyzes the impact of public procurement on the formal employment of small and medium-sized enterprises (SMEs) in China. The study finds that public procurement has significantly increased the proportion of formal employment within SMEs. Mechanism analysis finds that public procurement can effectively increase the proportion of highly educated employees.

Date: 2025
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DOI: 10.1080/13504851.2024.2313554

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