Indicators of Corruption in Public Procurement: The Example of Russian Regions

Abstract

Corruption is widely spread across the world and is believed to affect economic growth negatively. It is most persistent in the developing countries. Russian economy is not an exception. Significant losses are also reported in public procurement in Russia due to corruption. Unfortunately, to measure corruption is very challenging. In this paper, using the data on procurement in one of the Russian regions as an example, we suggest and discuss different indicators of corruption that might have taken place during the procurement process. We also provide some preliminary estimates of how corruption influences the results of public procurement in this region.

Keywords: public procurement; corruption

JEL Classification: H57, D73