Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia
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Abstract
This paper examines whether electronic procurement (e-procurement), which increases access to information and reduces personal interactions with potentially corrupt officials, improves procurement outcomes. We develop unique datasets from India and Indonesia and use variation in adoption of e-procurement within both countries. We find no evidence of reduced prices but do find that e-procurement leads to quality improvements. In India, where we observe quality directly, e-procurement improves road quality, and in Indonesia, e-procurement reduces delays. Regions with e-procurement are more likely to have winners come from outside the region. On net, the results suggest that e-procurement facilitates entry from higher quality contractors.Citation
Lewis-Faupel, Sean, Yusuf Neggers, Benjamin A. Olken, and Rohini Pande. 2016. "Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia." American Economic Journal: Economic Policy, 8 (3): 258-83. DOI: 10.1257/pol.20140258Additional Materials
JEL Classification
- D72 Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- H54 National Government Expenditures and Related Policies: Infrastructures; Other Public Investment and Capital Stock
- H57 National Government Expenditures and Related Policies: Procurement
- L12 Monopoly; Monopolization Strategies
- O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- O22 Project Analysis
- R42 Transportation Economics: Government and Private Investment Analysis; Road Maintenance, Transportation Planning
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