Government Procurement : Market Access, Transparency, and Multilateral Trade Rules

The authors examine the effects on national welfare and market access of two public procurement practices-discrimination against foreign suppliers of goods and services and nontransparency of the procedures used to allocate government contracts to firms. Both types of policies have become prominent...

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Main Authors:	Evenett, Simon J., Hoekman, Bernard M.
Language:	en_US
Published:	World Bank, Washington, DC 2013
Subjects:	access to markets alternative instruments arbitrage asymmetric information average costs average prices average variable costs barriers to entry bidding border trade budget constraints competition laws competition policies competitive market competitive markets consumer surplus consumers cost functions domestic competition domestic demand domestic industry domestic market domestic production domestic suppliers economic objectives economic welfare empirical studies equilibrium equilibrium prices excess supply exporters factor prices factors of production foreign competition foreign direct investment foreign direct investments foreign firm foreign firms foreign goods foreign market foreign producers foreign products foreign suppliers Foreign Trade Free Trade Free Trade Area GDP geographic proximity government expenditures imperfect competition import tariffs imports industrial policy international trade irreversibility legislation local authorities marginal cost marginal costs Market access market power market segmentation multilateral agreement multilateral disciplines multilateral trade national markets net imports open economies perfect competition perfect substitutes price elasticity price elasticity of demand producers production costs quotas resource allocation sales services markets substitutes suppliers supply curve taxation terms of trade total costs total sales tradable goods trade agreement trade agreements Trade Barriers trade negotiations trade policy trade reform trade reforms trade restrictions transparency Uruguay Round wages welfare effects welfare gains world markets world prices World Trade World Trade Organization WTO zero profits Corruption Government procurement Transparency Discriminatory trade practices Trade agreements
Online Access:	http://hdl.handle.net/10986/15762

id	okr-10986-15762
recordtype	oai_dc
spelling	okr-10986-157622021-04-23T14:03:22Z Government Procurement : Market Access, Transparency, and Multilateral Trade Rules Evenett, Simon J. Hoekman, Bernard M. access to markets alternative instruments arbitrage asymmetric information average costs average prices average variable costs barriers to entry bidding border trade budget constraints competition laws competition policies competitive market competitive markets consumer surplus consumers cost functions domestic competition domestic demand domestic industry domestic market domestic production domestic suppliers economic objectives economic welfare empirical studies equilibrium equilibrium prices excess supply exporters factor prices factors of production foreign competition foreign direct investment foreign direct investments foreign firm foreign firms foreign goods foreign market foreign producers foreign products foreign suppliers Foreign Trade Free Trade Free Trade Area GDP geographic proximity government expenditures imperfect competition import tariffs imports industrial policy international trade irreversibility legislation local authorities marginal cost marginal costs Market access market power market segmentation multilateral agreement multilateral disciplines multilateral trade national markets net imports open economies perfect competition perfect substitutes price elasticity price elasticity of demand producers production costs quotas resource allocation sales services markets substitutes suppliers supply curve taxation terms of trade total costs total sales tradable goods trade agreement trade agreements Trade Barriers trade negotiations trade policy trade reform trade reforms trade restrictions transparency Uruguay Round wages welfare effects welfare gains world markets world prices World Trade World Trade Organization WTO zero profits Corruption Government procurement World Trade Organization Transparency Discriminatory trade practices Trade agreements The authors examine the effects on national welfare and market access of two public procurement practices-discrimination against foreign suppliers of goods and services and nontransparency of the procedures used to allocate government contracts to firms. Both types of policies have become prominent in international trade negotiations, including the Doha Round of the World Trade Organization (WTO) trade talks. Traditionally, the focus of international trade agreements has been on market access. However, many developing countries have opposed the launch of negotiations to extend the principle of nondiscrimination to procurement. As a result, the current focus in the Doha Round is on an effort to launch discussions on agreeing to principles of transparency in procurement. While transparency will not constrain the ability of governments to discriminate in favor of domestic firms, it could nonetheless improve market access by reducing corruption. The authors assess and compare the impact of eliminating discrimination and fostering greater domestic competition in procurement markets and enhancing transparency in state contracting. Their analysis concludes that greater domestic competition on procurement markets and greater transparency will improve economic welfare. But there is no clear-cut effect on market access of ending discrimination or improving transparency. This mismatch between market access and welfare effects may account for the slower progress in negotiating procurement disciplines in trade agreements than for traditional border measures such as tariffs, given that market access is the driving force behind trade agreements. 2013-09-10T20:37:42Z 2013-09-10T20:37:42Z 2004-01 http://hdl.handle.net/10986/15762 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	access to markets alternative instruments arbitrage asymmetric information average costs average prices average variable costs barriers to entry bidding border trade budget constraints competition laws competition policies competitive market competitive markets consumer surplus consumers cost functions domestic competition domestic demand domestic industry domestic market domestic production domestic suppliers economic objectives economic welfare empirical studies equilibrium equilibrium prices excess supply exporters factor prices factors of production foreign competition foreign direct investment foreign direct investments foreign firm foreign firms foreign goods foreign market foreign producers foreign products foreign suppliers Foreign Trade Free Trade Free Trade Area GDP geographic proximity government expenditures imperfect competition import tariffs imports industrial policy international trade irreversibility legislation local authorities marginal cost marginal costs Market access market power market segmentation multilateral agreement multilateral disciplines multilateral trade national markets net imports open economies perfect competition perfect substitutes price elasticity price elasticity of demand producers production costs quotas resource allocation sales services markets substitutes suppliers supply curve taxation terms of trade total costs total sales tradable goods trade agreement trade agreements Trade Barriers trade negotiations trade policy trade reform trade reforms trade restrictions transparency Uruguay Round wages welfare effects welfare gains world markets world prices World Trade World Trade Organization WTO zero profits Corruption Government procurement World Trade Organization Transparency Discriminatory trade practices Trade agreements
spellingShingle	access to markets alternative instruments arbitrage asymmetric information average costs average prices average variable costs barriers to entry bidding border trade budget constraints competition laws competition policies competitive market competitive markets consumer surplus consumers cost functions domestic competition domestic demand domestic industry domestic market domestic production domestic suppliers economic objectives economic welfare empirical studies equilibrium equilibrium prices excess supply exporters factor prices factors of production foreign competition foreign direct investment foreign direct investments foreign firm foreign firms foreign goods foreign market foreign producers foreign products foreign suppliers Foreign Trade Free Trade Free Trade Area GDP geographic proximity government expenditures imperfect competition import tariffs imports industrial policy international trade irreversibility legislation local authorities marginal cost marginal costs Market access market power market segmentation multilateral agreement multilateral disciplines multilateral trade national markets net imports open economies perfect competition perfect substitutes price elasticity price elasticity of demand producers production costs quotas resource allocation sales services markets substitutes suppliers supply curve taxation terms of trade total costs total sales tradable goods trade agreement trade agreements Trade Barriers trade negotiations trade policy trade reform trade reforms trade restrictions transparency Uruguay Round wages welfare effects welfare gains world markets world prices World Trade World Trade Organization WTO zero profits Corruption Government procurement World Trade Organization Transparency Discriminatory trade practices Trade agreements Evenett, Simon J. Hoekman, Bernard M. Government Procurement : Market Access, Transparency, and Multilateral Trade Rules
description	The authors examine the effects on national welfare and market access of two public procurement practices-discrimination against foreign suppliers of goods and services and nontransparency of the procedures used to allocate government contracts to firms. Both types of policies have become prominent in international trade negotiations, including the Doha Round of the World Trade Organization (WTO) trade talks. Traditionally, the focus of international trade agreements has been on market access. However, many developing countries have opposed the launch of negotiations to extend the principle of nondiscrimination to procurement. As a result, the current focus in the Doha Round is on an effort to launch discussions on agreeing to principles of transparency in procurement. While transparency will not constrain the ability of governments to discriminate in favor of domestic firms, it could nonetheless improve market access by reducing corruption. The authors assess and compare the impact of eliminating discrimination and fostering greater domestic competition in procurement markets and enhancing transparency in state contracting. Their analysis concludes that greater domestic competition on procurement markets and greater transparency will improve economic welfare. But there is no clear-cut effect on market access of ending discrimination or improving transparency. This mismatch between market access and welfare effects may account for the slower progress in negotiating procurement disciplines in trade agreements than for traditional border measures such as tariffs, given that market access is the driving force behind trade agreements.
author	Evenett, Simon J. Hoekman, Bernard M.
author_facet	Evenett, Simon J. Hoekman, Bernard M.
author_sort	Evenett, Simon J.
title	Government Procurement : Market Access, Transparency, and Multilateral Trade Rules
title_short	Government Procurement : Market Access, Transparency, and Multilateral Trade Rules
title_full	Government Procurement : Market Access, Transparency, and Multilateral Trade Rules
title_fullStr	Government Procurement : Market Access, Transparency, and Multilateral Trade Rules
title_full_unstemmed	Government Procurement : Market Access, Transparency, and Multilateral Trade Rules
title_sort	government procurement : market access, transparency, and multilateral trade rules
publisher	World Bank, Washington, DC
publishDate	2013
url	http://hdl.handle.net/10986/15762
_version_	1764431073067925504

Government Procurement : Market Access, Transparency, and Multilateral Trade Rules

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