Hostname: page-component-cd9895bd7-dk4vv Total loading time: 0 Render date: 2024-12-23T17:39:27.480Z Has data issue: false hasContentIssue false

Services procurement under the WTO's Agreement on Government Procurement: whither market access?

Published online by Cambridge University Press:  16 August 2011

ANIRUDH SHINGAL*
Affiliation:
Senior Research Fellow, WTI and Research Affiliate, CARIS, University of Sussex

Abstract

This paper studies the government procurement of services from foreign suppliers by conducting a statistical analysis of data submitted by Japan and Switzerland to the WTO's Committee on Government Procurement. Using several metrics, the paper examines whether the WTO's Agreement on Government Procurement (GPA) has led to greater market access for foreign suppliers in services procurement. Our results indicate that despite the GPA, the proportions of services contracts awarded to foreigners have declined over time for both countries and that in the absence of this decline, the value of services contracts awarded to foreign firms would have been more than 15 times higher in the case of Japan and nearly 68 times more in the case of Switzerland. We also find that for the same services categories, the Japanese government is not purchasing as much from abroad as its private sector is importing from the rest of the world, a finding that further points to the home-bias in that government's public purchase decisions.

Type
Review Article
Copyright
Copyright © Anirudh Shingal 2011

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

Baldwin, R. E. (1970), Nontariff Distortions of International Trade, Washington, DC: Brookings Institution.Google Scholar
Baldwin, R. E. (1984), ‘Trade policies in developed countries’, in Jones, R., and Kenen, P. (eds.), Handbook of International Economics, Amsterdam: North-Holland.Google Scholar
Baumol, W. (1967), ‘Macroeconomics of Unbalanced Growth: The Anatomy of Urban Crisis’, American Economic Review, 57(3): 415426.Google Scholar
Branco, Fernando (1994), ‘Favouring Domestic Firms in Procurement Contracts’, Journal of International Economics, 37: 6580.CrossRefGoogle Scholar
Breton, Albert and Salmon, Pierre (1995), ‘Are Discriminatory Procurement Policies Motivated by Protectionism?’, Kyklos, 49: 4768.CrossRefGoogle Scholar
Chen, Xiangqun (1995), ‘Directing Government Procurement as an Incentive of Production’, Journal of Economic Integration, 10: 130140.CrossRefGoogle Scholar
Deltas, George and Evenett, Simon (1997), ‘Quantitative Estimates of the Effects of Preference Policies’, in Hoekman, Bernard and Mavroidis, Petros (eds.), Law and Policy in Public Purchasing: The WTO Agreement on Government Procurement, University of Michigan Press.Google Scholar
Evenett, Simon J. (2000), Reforming the Government Procurement Agreement: Promote Transparency then Non-discrimination, The World Bank, Brookings Institution and CEPR, November.Google Scholar
Evenett, Simon and Shingal, Anirudh (2006), ‘Monitoring Implementation: Japan and the WTO Agreement on Government Procurement’, in Economic Development and Multilateral Trade Cooperation, Oxford University Press and World Bank.Google Scholar
Laffont, J. J and Tirole, Jean (1991), ‘Auction Design and Favouritism’, International Journal of Industrial Organization, 9: 942.CrossRefGoogle Scholar
McAfee, R. Preston and McMillan, John (1989), ‘Government Procurement and International Trade’, Journal of International Economics, 26: 291308.CrossRefGoogle Scholar
Miyagiwa, K. (1991), ‘Oligopoly and Discriminatory Government Procurement Policy’, American Economic Review, 81: 13211328.Google Scholar
OECD (2002), ‘The Size of Government Procurement Markets’, Journal of Budgeting, 1(4).Google Scholar
OECD (various years), ‘StatExtracts’, http://stats.oecd.org/Index.aspx.Google Scholar
Rothenberg, Julio (1993), ‘Comment’, in Leitzel, Jim and Tirole, Jean (eds.), Incentives in Procurement Contracting, Boulder, CO: Westview Press.Google Scholar
Shingal, Anirudh (2002), ‘The Agreement on Government Procurement: An Analysis of Submissions made by Japan’, unpublished Masters Thesis, World Trade Institute, Berne.Google Scholar
Transparency International (1997), ‘The TI Source Book: Applying the Framework’ (www.transparency.de)Google Scholar
UNSC (2002), ‘GATS, CPC Version 1.1’, GNS/W/120, http://unstats.un.org/unsd/statcom/doc02/cpc.pdf.Google Scholar
Wanger, Adolph (1963), Grundlegung der Politischen Ökonomie.Google Scholar
World Bank (1994), ‘Rehabilitation Loan: Pre-Identified Import Component Distribution Monitoring Report’, December 9, mimeo.Google Scholar
WTO (various years), ‘Statistics Reports under Article XIX:5 of the GPA’, Committee on Government Procurement, http://www.wto.org/english/tratop_e/gpstat_e.htm.Google Scholar