Trade Barriers in Government Procurement
This paper estimates trade barriers in government procurement, a market that accounts for 12 percent of world GDP. Using data from inter-country input-output tables in a gravity model, the paper finds that home bias in government procurement is sig...
| Main Authors: | , |
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| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/909421616692457601/Trade-Barriers-in-Government-Procurement http://hdl.handle.net/10986/35353 |
| Summary: | This paper estimates trade barriers in
government procurement, a market that accounts for 12
percent of world GDP. Using data from inter-country
input-output tables in a gravity model, the paper finds that
home bias in government procurement is significantly higher
than in trade between firms. However, this difference has
been shrinking over time. Results also show that trade
agreements with provisions on government procurement
increase cross-border flows of services, whereas the effect
on goods is small and not different from that in private
markets. Provisions containing transparency and procedural
requirements drive the liberalizing effect of trade agreements. |
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