Pushkinskaya st. 43. office 10
Rostov-on-Don, Russia
e-mail: info@hjournal.ru 
tel. +7(863) 269-88-14

cubsEN (2)

Procurement in the Context of Conditions for Countries’ Institutional and Technological Development: an Empirical Analysis

Procurement in the Context of Conditions for Countries’ Institutional and Technological Development: an Empirical Analysis

Journal of Economic Regulation, , Vol. 11 (no. 2),

The paper focuses on use of cluster analysis in order to determine groups of countries similar to Russia in terms of their institutional and technological environment for public procurement. Indices on 139 countries in 2018 are analyzed. A technical approach is suggested to define the position of the Russian Federation relative to the countries with a market concept of procurement. Several stages of a sequential search of similar-to-Russia performance conditions for a pubic procurement system are described. Clustering is based on two groups of factors. Technological parameters in accord with the findings of international studies include the expenditure share on public consumption and national defence in GDP, GDP growth rate, rate of urbanization and human development index. To account for the quality of the institutional environment factors that directly influence public procurement conditions, we apply data on Corruption Perception Index and Ease of Doing Business Index. A list of countries similar to Russia on particular groups of indices as well as group overlapping is given. Conclusions highlight the difference between the Russian Federation and a group of developed countries that formed the basic international principles of public procurement systems.

Keywords: government purchases; procurement; cluster analysis; institutional environment

  • Zubarev, D. (2018). The General Prosecutor’s Office described four types of violations in public procurement // Vzglyad. (https://vz.ru/news/2018/5/8/921640.html). [in Russian]
  • Kwon, D. (2015). Corruption Perception Index: evaluating methodology. Vlast, 6, 72–76. (in Russian).
  • Melnikov, V., Litvintseva, G. (2020). How and why public procurement costs are growing in the Russian Federation. ECO, 3, 30–43. (in Russian).
  • The Russian Federation in the World Bank’s Doing Business ranking. (https://www.economy.gov.ru/material/file/fe69a26806f911ab266ba72de2a1b51e/Doing_Business_2019.pdf). (in Russian).
  • The Audit Chamber exposed a fivefold increase of violations in public procurement over two years. (https://www.rbc.ru/economics/12/04/2019/5cb072fc9a79475d2c90d07b). (in Russian).
  • The Audit Chamber exposed the worth budget expenditure execution over 10 years. Vedomosti. – 19.02.2019. (in Russian).
  • Blome, C., Hollos, D., Paulradj, A. (2014). Green procurement and green supplier development: antecedents and effects on supplier performance. International Journal of Production Research, 52(1), 32–49.
  • Brammer, S., Walker, H. (2011). Sustainable procurement in the public sector: an international comparative study. International Journal of Operations and Production Management, 31(4), р. 452-476.
  • Calinski, T., Harabasz, J. (1974). A dendrite method for cluster analysis. Communications in Statistics, 3(1), 1–27.
  • Fölster, S., Henrekson, M. (2001). Growth effects of government expenditure and taxation in rich countries. European Economic Review, 45(8), 1501–1520.
  • Geroski, P. (1990). Procurement Policy as a Tool of Industrial Policy. International Review of Applied Economics, 4(2), 182–198.
  • Human Development Index. (2019). (http://hdr.undp.org/en/content/human-developmentindex-hdi).
  • Kimakova, A. (2009). Government size and openness revisited: the case of financial globalization. KYKLOS, 62(3), 394–406.
  • Kolluri, B. R., Panik, M. J., Wahab, M. S. (2000). Government expenditure and economic growth: Evidence from G7 countries. Applied Economics, 32(8), 1059–1068.
  • Lamartina, S., Zaghini, A. (2011). Increasing Public Expenditure: Wagner’s Law in OECD Countries. German Economic Review, 12(2), 149–164.
  • Maluleke, G. (2016). The empirical analysis of the determinants of government expenditure in South Africa from 1970 to 2016. Euro Economica, 37(3), 191–201.
  • McCrudden, C. (2004). Using public procurement to achieve social outcomes. Natural resources forum, 28(4), 257–267.
  • Murray, G. (2009). Public procurement strategy for accelerating the economic recovery. Supply Chain Management, 14(6), 429–434.
  • Rodrik, D. (1998). Why do more open economies have bigger governments? Journal of Political Economy, 106(5), 997–1032.
  • Rolfstam, M. (2009). Public Procurement as an Innovation Policy Tool: The Role of Institutions. Science and Public Policy, 36(5), 349–360.
  • Troje, D., Gluch, P. (2020). Populating the social realm: new roles arising from social procurement. Construction Management and Economics, 38(1), 55–70.
  • Tiryakioğlu, M., Yülek, M. (2015). Development-based public procurement policies: a selective survey of literature, cross-country policy experience and the Turkish experience. Innovation: The European Journal of Social Science Research, 28(3), 344–359.
  • Zakaria, M., Shakoor, S. (2011). Relationship between government size and trade openness: Evidence from Pakistan. Transition Studies Review, 18(2), 328–341.
Publisher: Ltd. "Humanitarian perspectives"
Founder: Ltd. "Humanitarian perspectives"
Online ISSN: 2412-6047
ISSN: 2078-5429