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

Abstract:     
The effects on national welfare and market access of two important public procurement practices (discrimination and non-transparency) are analyzed with an eye to the ongoing discussions on procurement reform in the Doha Round. The analysis suggests that the welfare payoffs of adopting mechanisms that foster domestic competition and transparency are likely to be greater than the return to efforts to ban international discrimination. However improved transparency, which may well reduce corruption, is unlikely to also result in significant enhancements in market access. This in turn raises questions about the likely enforceability of a WTO agreement on transparency in procurement.

Keywords: Government procurement, public purchasing, WTO, transparency, corruption, Doha Round

JEL Classifications: F1, F13, H57

Working Paper Series