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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

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