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Assessing Vulnerabilities to Corruption in Public Procurement and Their Price Impact
Author:
Aly Abdou
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,
Olivier Basdevant
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Elizabeth David-Barrett
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Mihaly Fazekas
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Series:
IMF Working Papers
Volume/Issue:
Volume 2022: Issue 094
Language:
English
Publication Date:
20 May 2022
DOI:
https://doi.org/10.5089/9798400207884.001
ISBN:
9798400207884
ISSN:
1018-5941
Pages:
31
Keywords:
public procurement; corruption; corruption risks; procurement cost; price differential; corruption risk; price impact; procurement contract; data collection methodology; Global
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Public procurement can be highly vulnerable to corruption. This paper outlines a methodology and results in assessing corruption risks in public procurement and their impact on relative prices, using large databases on government contracts and tenders. Our primary contribution is to analyze how price differential in public procurement contracts can be explained by corruption risk factor (aggregated in a synthetic corruption risk index). While there are intrinsic limitations to our study (price differentials can come from structural reasons, such as a limited number of potential suppliers) it still provides a guiding tool to assess where corruption risks would have the biggest budgetary impact. Such analysis helps inform mitigating policies owing to the granular data used.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2022: Issue 094