Does E-Procurement Matter for Economic Growth? Subnational Evidence from Australia

59 Pages Posted: 5 Mar 2020

See all articles by Thomas Emery

Thomas Emery

The University of Western Australia - UWA Business School

Lela Mélon

Universitat Pompeu Fabra

Rok Spruk

University of Ljubljana - Faculty of Economics

Date Written: February 9, 2020

Abstract

We examine the impact of e-procurement on economic growth. To this end, we exploit an ambitious implementation of large-scale mandatory e-procurement platform in New South Wales and Western Australia. By matching pre-reform growth dynamics and its covariates with the rest of the world, we provide a plausible source of variation in growth that allows us to build a counterfactual growth scenario in the hypothetical absence of the reform. Using more than 100 countries in country-state matched balanced sample, our evidence highlights a mixed impact of mandatory e-procurement on growth. We find that the institutional quality of governance and policy implementation underlines the magnitude of the growth effect. In particular, our findings contrast a significant positive impact of the mandatory e-procurement on the economic growth of Western Australia with a zero impact of the similar reform in New South Wales. We argue that this contrast arises from the differences in transaction costs, quality of governance, and strength of regulatory oversight that either foster or hamper the opportunities for corruption. The estimated impact of reform is robust across a multitude of spatial and temporal placebo studies, choice of samples and does not seem to be driven by pre-existing shocks or prevalent economic conditions.

Keywords: economic growth, e-procurement, Australia

JEL Classification: C13, C21, D73, P51, O43, O47

Suggested Citation

Emery, Thomas and Mélon, Lela and Spruk, Rok, Does E-Procurement Matter for Economic Growth? Subnational Evidence from Australia (February 9, 2020). Available at SSRN: https://ssrn.com/abstract=3535070 or http://dx.doi.org/10.2139/ssrn.3535070

Thomas Emery

The University of Western Australia - UWA Business School ( email )

Crawley, Western Australia 6009
Australia

Lela Mélon

Universitat Pompeu Fabra ( email )

Ramon Trias Fargas, 25-27
Barcelona, E-08005
Spain

Rok Spruk (Contact Author)

University of Ljubljana - Faculty of Economics ( email )

Kardeljeva ploscad 17
Ljubljana, 1000
Slovenia

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
31
Abstract Views
398
PlumX Metrics