SME Participation in Public Purchasing: Procurement Policy Matters

39 Pages Posted: 9 Sep 2020

See all articles by Bernard Hoekman

Bernard Hoekman

Robert Schuman Centre for Advanced Studies; European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS); Centre for Economic Policy Research (CEPR)

Bedri Kamil Onur Tas

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS)

Multiple version iconThere are 2 versions of this paper

Date Written: May 2020

Abstract

This paper investigates the relationship between the quality of regulatory policies governing public procurement and participation in public tenders by small and medium enterprises (SMEs). Using a large dataset on European procurement contracts, we find that countries with better quality procurement regulation have higher SME participation and win ratios. Dividing contracts into smaller lots is associated with greater participation by SMEs, but only increases the probability of SMEs winning contracts for small value lots (€25,000 or less). Counterfactual simulations suggest that if governments want to enhance participation by SMEs in public procurement the focus should be on improving the overall quality of procurement processes.

Keywords: Public procurement; SME participation; good practice; regulation; lot size

JEL Classification: H57; O12

Suggested Citation

Hoekman, Bernard and Tas, Bedri Kamil Onur, SME Participation in Public Purchasing: Procurement Policy Matters (May 2020). Robert Schuman Centre for Advanced Studies Research Paper No. RSCAS 2020/38, Available at SSRN: https://ssrn.com/abstract=3688354 or http://dx.doi.org/10.2139/ssrn.3688354

Bernard Hoekman (Contact Author)

Robert Schuman Centre for Advanced Studies ( email )

Fiesole, Tuscany
Italy

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Bedri Kamil Onur Tas

European University Institute - Robert Schuman Centre for Advanced Studies (RSCAS) ( email )

Villa La Fonte, via delle Fontanelle 18
50016 San Domenico di Fiesole
Florence, Florence 50014
Italy

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