Hostname: page-component-78c5997874-m6dg7 Total loading time: 0 Render date: 2024-11-19T14:29:19.624Z Has data issue: false hasContentIssue false

What do good governments actually do?: An analysis using European procurement data

Published online by Cambridge University Press:  10 October 2017

Mircea Popa*
Affiliation:
Lecturer in Politics, School of Sociology, Politics, and International Studies (SPAIS), University of Bristol, Bristol, UK
*

Abstract

This article looks at what good and bad governments do when performing one of their most central functions, namely public procurement. Some 1.5 million public contracts from across Europe are analyzed through statistical models that compare contracting patterns between good- and poor-governance regions. At the most basic level, the results can be interpreted as a rejection of a conventional view of the relation between governance and institutional choices and outcomes. It is not the case that poorly governed jurisdictions allow more discretion to public officials, that they impose more limits on access to markets, or that they clearly feature more competition, and in fact the opposite often holds. Going beyond this negative finding, the article argues that an alternative view of institutional choice and its connection with governance, in which some discretion and flexibility is desirable, can provide a better explanation of observed patterns, and can have important implications for institutional design.

Type
Research Article
Copyright
© European Consortium for Political Research 2017 

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Acemoglu, D. and Robinson, J. (2012), Why Nations Fail: The Origins of Power, Prosperity, and Poverty, New York: Crown Publishers.Google Scholar
Acemoglu, D., Johnson, S. and Robinson, A. (2001), ‘The colonial origins of comparative development: an empirical investigation’, The American Economic Review 91(5): 13691401.CrossRefGoogle Scholar
Ainsley, C. (2017), ‘Central bank transparency and the performance of market expectations’. Unpublished Manuscript. University of Washington, Seattle.Google Scholar
Albano, G.L., Buccirossi, P., Spagnolo, G. and Zanza, M. (2006), ‘Preventing collusion in procurement’, in N. Dimitri, G. Piga and G. Spagnolo (eds), Handbook of Procurement, Cambridge: Cambridge University Press, pp. 347–380.Google Scholar
Anechiarico, F. and Jacobs, J.B. (1996), The Pursuit of Absolute Integrity: How Corruption Control Makes Government Ineffective, Chicago: University of Chicago Press.Google Scholar
Arrowsmith, S. (2009), ‘EC regime on public procurement’, in K. Thai (ed.), International Handbook of Public Procurement, Boca Raton, Florida: CRC Press, pp. 251290.Google Scholar
Arrowsmith, S. and Treumer, S. (2012), Competitive Dialogue in EU Procurement, Cambridge: Cambridge University Press.CrossRefGoogle Scholar
Banerjee, A. and Iyer, L. (2005), ‘History, institutions, and economic performance: the legacy of colonial land tenure systems in India’, The American Economic Review 95(4): 11901213.Google Scholar
Bauhr, M. and Grimes, M. (2014), ‘Indignation or resignation: the implications of transparency for societal accountability’, Governance 27(2): 291320.Google Scholar
Bazavan, S. (2015), ‘Romanian businessman and MP Sebastian Ghita faces new corruption charges’. Business Review. Retrieved 30 June 2016 from http://www.business-review.eu/featured/romanian-businessman-and-mp-sebastian-ghita-faces-new-corruption-charges-82853 Google Scholar
Bel, G., González-Gómez, F. and Picazo-Tadeo, A. (2015), ‘Political connections, corruption, and privatization of public services’. Working paper no. 201515, Research Institute of Applied Economics, University of Barcelona, Barcelona, Spain.Google Scholar
Besley, T. (2006), Principled Agents?: The Political Economy of Good Government, New York: Oxford University Press.Google Scholar
Campos, J.E. and Pradhan, S. (eds) (2007), The Many Faces of Corruption: Tracking Vulnerabilities at the Sector Level, Washington: World Bank Publications.CrossRefGoogle Scholar
Case C-360/89 Commission v Italian Republic. European Court of Justice. Retrieved 30 June 2016 from http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:61989CJ0360 Google Scholar
Case C-574/10 Commission v Germany. European Court of Justice. Retrieved 30 June 2016 from http://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX:62010CJ0574 Google Scholar
Celentani, M. and Ganuza, J.J. (2002), ‘Corruption and competition in procurement’, European Economic Review 46(7): 12731303.CrossRefGoogle Scholar
Charron, N., Dijkstra, L. and Lapuente, V. (2015), ‘Mapping the regional divide in Europe: a measure for assessing quality of government in 206 European regions’, Social Indicators Research 122(2): 315346.Google Scholar
‘Council Directive 2004/18/EC on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts’. Retrieved 30 June 2016 from http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32004L0018&from=EN Google Scholar
‘Council Directive 2014/24/EU on public procurement and repealing Directive 2004/18/EC’. Retrieved 30 June 2016 from http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=celex:32014L0024 Google Scholar
de Jonge, E., Wijffels, J. and van der Laan, J. (2014), ‘ff: Memory-efficient storage of large data on disk and fast access functions’. Retrieved 30 June 2016 from cran.r-project.org/web/ packages/ff/index.html Google Scholar
de Jonge, E., Wijffels, J. and van der Laan, J. (2015), ‘ffbase: Basic statistical functions for package ‘ff’’. Retrieved 30 June 2016 from cran.r-project.org/web/packages/ffbase/index.html Google Scholar
Dell, M. (2010), ‘The persistent effects of Peru’s mining Mita’, Econometrica 78(6): 18631903.Google Scholar
Dimitri, N., Dini, F. and Piga, G. (2006), ‘When should procurement be centralized’, in N. Dimitri, G. Piga and G. Spagnolo (eds), Handbook of Procurement, Cambridge: Cambridge University Press, pp. 47–81.CrossRefGoogle Scholar
Dininio, P. and Orttung, R. (2005), ‘Explaining patterns of corruption in the Russian regions’, World Politics 57(4): 500529.Google Scholar
El Pais (2014), ‘Casos De Corrupcin Que Afectan Al PP’. Retrieved 30 June 2016 from http://politica.elpais.com/politica/2014/10/28/actualidad/1414520083814722.html Google Scholar
European Commission (2011), ‘Commission regulation no. 1251/2011’. Retrieved 30 June 2016 from http://eur-lex.europa.eu/lexuriserv/lexuriserv.do?uri=oj:l:2011:319:0043:0044:en:pdf Google Scholar
European Commission (2014), ‘Eurobarometer 397’. Retrieved 30 June 2016 from ec.europa.eu/public_opinion/archives/ebs/ebs_397_en.pdf Google Scholar
European Commission (2016), ‘Single market scoreboard: public procurement’. Retrieved 30 June 2016 from http://ec.europa.eu/internal_market/scoreboard/performance_per_policy_area/public_procurement/index_en.htm Google Scholar
Eurostat (2016), ‘Regional statistics by NUTS classification’. Retrieved 30 June 2016 from http://ec.europa.eu/eurostat/web/regions/data/database Google Scholar
Fazekas, M. and Tóth, I.J. (2016), ‘From corruption to state capture: a new analytical framework with empirical applications from Hungary’, Political Research Quarterly 69(2): 320334.Google Scholar
Fazekas, M., Tóth, I.J. and King, L.P. (2016), ‘An objective corruption risk index using public procurement data’, European Journal on Criminal Policy and Research 22(3): 129.Google Scholar
Gailmard, S. and Patty, J.W. (2012), ‘Formal models of bureaucracy’, Annual Review of Political Science 15: 353377.CrossRefGoogle Scholar
Gerring, J. and Thacker, S.C. (2004), ‘Political institutions and corruption: the role of unitarism and parliamentarism’, British Journal of Political Science 34(2): 295330.Google Scholar
Gerring, J. and Thacker, S.C. (2005), ‘Do neoliberal policies deter political corruption?’, International Organization 59(1): 233254.Google Scholar
Gerring, J., Thacker, S.C. and Moreno, C. (2005), ‘Centripetal democratic governance: a theory and global inquiry’, American Political Science Review 99(4): 567581.Google Scholar
Hall, R.E. and Jones, C.I. (1999), ‘Why do some countries produce so much more output per worker than others?’, The Quarterly Journal of Economics 114(1): 83116.Google Scholar
Hardoon, D. and Heinrich, F. (2011), Bribe Payers’ Index 2011, Berlin: Transparency International.Google Scholar
Hardoon, D. and Heinrich, F. (2013), Global Corruption Barometer 2013, Berlin: Transparency International.Google Scholar
Hilbe, J.M (2011), Negative Binomial Regression, Cambridge: Cambridge University Press.Google Scholar
Kaufmann, D., Kraay, A. and Mastruzzi, M. (2011), ‘The worldwide governance indicators: methodology and analytical issues’, Hague Journal on the Rule of Law 3(2): 220246.Google Scholar
Keisler, J.M. and Buehring, W.A. (2005), ‘How many vendors does it take to screw down a price? A primer on competition’, Journal of Public Procurement 5(3): 291317.Google Scholar
Knack, S. and Keefer, P. (1995), ‘Institutions and economic performance: cross‐country tests using alternative institutional measures’, Economics & Politics 7(3): 207227.Google Scholar
Kovacic, W.E., Marshall, R.C., Marx, L.M. and Raiff, M.E. (2006), ‘Bidding rings and the design of anti-collusion measures for auctions and procurements’, in N. Dimitri, G. Piga and G. Spagnolo (eds), Handbook of Procurement, Cambridge: Cambridge University Press, pp. 381–411.Google Scholar
Kucik, J. and Pelc, K.J. (2015), ‘Measuring the cost of privacy: a look at the distributional effects of private bargaining’, British Journal of Political Science 46(4): 129.Google Scholar
La Porta, R., Lopez-de-Silanes, F., Shleifer, A. and Vishny, R. (1999), ‘The quality of government’, Journal of Law, Economics, and Organization 15(1): 222279.Google Scholar
Malesky, E.J., Nguyen, C.V. and Tran, A. (2014), ‘The impact of recentralization on public services’, American Political Science Review 108(1): 144168.Google Scholar
Mauro, P. (1998), ‘Corruption and the composition of government expenditure’, Journal of Public economics 69(2): 263279.Google Scholar
North, D.C., Wallis, J.J. and Weingast, B.R. (2009), Violence and Social Orders: A Conceptual Framework for Interpreting Recorded Human History, New York: Cambridge University Press.Google Scholar
OECD (2011), Government at a Glance 2011, Paris: OECD Publishing.Google Scholar
Pedersen, A., Lindenberg, F., Homolova, A., Le Borgne, Y., Cassee, J., Keegan, M., Veltman, N. and Wehrmeyer, S. (2015), ‘OpenTed database’. http://ted.openspending.org Google Scholar
Persson, A. and Rothstein, B. (2015), ‘It’s my money: why big government may be good government’, Comparative Politics 47(2): 231249.Google Scholar
Piga, G. (2011), ‘A fighting chance against corruption in public procurement’, in S. Rose-Ackerman and T. Soreide (eds), International Handbook on the Economics of Corruption, Cheltenham: Edward Elgar Publishing, pp. 141184.Google Scholar
Podumljak, M. and David-Barrett, E. (2015), ‘Political favouritism in Croatian public procurement’, in A. Mungiu-Pippidi (ed.), Government Favouritism in Europe, Berlin: Barbara Budrich Publishers, pp. 69.Google Scholar
PwC, London Economics, and Ecorys (2011), ‘Public procurement in Europe: cost and effectiveness’. http://ec.europa.eu/internal_market/publicprocurement/docs/modernising_rules/cost-effectiveness_en.pdf Google Scholar
Rose-Ackerman, S. (1999), Corruption and Government: Causes, Consequences, and Reform, New York: Cambridge University Press.CrossRefGoogle Scholar
Rose-Ackerman, S. (2013), Corruption: A Study in Political Economy, New York: Academic Press.Google Scholar
Rothstein, B. and Uslaner, E.M. (2005), ‘All for all: equality, corruption, and social trust’, World Politics 58(1): 4172.CrossRefGoogle Scholar
Rothstein, B. and Teorell, J. (2008), ‘What is quality of government? A theory of impartial government institutions’, Governance 21(2): 165190.Google Scholar
Sadanandan, A. (2012), ‘Patronage and decentralization: the politics of poverty in India’, Comparative Politics 44(2): 211228.Google Scholar
Schapper, P.R., Malta, J.N.V. and Gilbert, D.L. (2006), ‘An analytical framework for the management and reform of public procurement’, Journal of Public Procurement 6(1/2): 126.Google Scholar
Serra, D. and Wantchekon, L. (eds) (2012), New Advances in Experimental Research on Corruption, Bingley, UK: Emerald Group Publishing.Google Scholar
Sokoloff, K.L. and Engerman, S.L. (2000), ‘History lessons: institutions, factors endowments, and paths of development in the new world’, The Journal of Economic Perspectives 14(3): 217232.Google Scholar
Søreide, T. (2002), Corruption in Public Procurement. Causes, Consequences and Cures, Bergen, Norway: Christian Michelsen Institute.Google Scholar
Tabellini, G. (2008), ‘Presidential address on institutions and culture’, Journal of the European Economic Association 6(2–3): 255294.Google Scholar
Transparency International (2014), ‘Corruption perceptions index’. http://www.transparency.org/cpi2014 Google Scholar
Supplementary material: File

Popa supplementary material 1

Appendix

Download Popa supplementary material 1(File)
File 622 KB