Determinants of direct cross-border public procurement in EU Member States
Zornitsa Kutlina-Dimitrova and
No 2014-2, DG TRADE Chief Economist Notes from Directorate General for Trade, European Commission
The aim of this paper is to analyse the determinants of direct cross-border public procurement in the EU Member States. For this purpose, we use a unique dataset based on obligatory data published on TED (Tenders Electronic Daily) which covers public procurement contract award notices for the period 2008-2012 and consists of more than 30 variables. Among others, results of the econometric estimation suggest that the probability of awarding a contract cross-border depends positively on the value of the contract awarded and negatively on the number of offers. Among awarding country characteristics, GDP per capita and euro-area membership are found to positively impact the probability of a cross-border award, while population and the share of government expenditure in total GDP have a negative influence. Barriers to trade (a proxy of tariff and non-tariff barriers) are shown to have a significant negative impact on cross-border awards while investment freedom (a proxy of openness to FDI) is found to have a positive effect on the probability of a cross-border win.
Keywords: EU Member States; public procurement; international competition; econometric analysis (search for similar items in EconPapers)
JEL-codes: F13 F14 H41 H57 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:dgtcen:2014_002
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