The Efficiency of Public Procurement in the Republic of Kosovo: an Econometric Approach (original) (raw)
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European Procurement & Public Private Partnership Law Review, 2016
This study aims at investigating and assessing the efficiency of the public procurement system and its main factors in the Republic of Kosovo. For this purpose, we collect data for a random sample of 243 economic operators (companies) eligible to benefit from public funds. We analyzed the data using descriptive analysis as well as econometric modeling, and we have used classical and ordinal logistic (o-logit) econometric models. In the absence of a direct indicator, the efficiency of procurement is measured by two proxy variables, discrimination-tendering criteria and a favor made to specific companies to win tenders, by their average as a third optional variable. Discrimination and favor are found to be present to a large extent, meaning that efficiency is very low. Among the major factors of the low efficiency of public procurement were political intervention, the non-transparency of the procurement process, a lack of capacity to implement procurement legislation and manage contracts, corruption and insufficient knowledge about procurement. Based on these results, important implications would lie in introducing measures for enhancing transparency, improving legislation, recruiting especially qualified staff or providing continuous training for the current procurement staff as well as improving the motivation of the staff to properly implement legislation and manage the procurement contracts.
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Many studies analyse factors (such as corruption, competitiveness, transaction costs), which are influencing public procurement efficiency. The purpose of this paper is to find out, what the main factors are in Slovakia that are influencing public procurement efficiency, and based on our analysis, we will also estimate what is the impact of each factor on the efficiency of public procurement in Slovakia. The research for this paper was executed in three stages. We began with a small number of face-to-face in-depth interviews with specialist procurement advisors to contracting authorities. In the second stage, we created draft questionnaires for contracting authorities and for suppliers, and once we tested questionnaires, it was sent to 13,571 suppliers and to 4,300 contracting authorities. In the last stage, we used various types of analyses to examine identified factors. There is significant agreement between suppliers and contractors that the two main factors causing inefficiencie...
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The aim of this paper is to identify the difference between the prices achieved in public procurement by public and private bodies. The analysis exploits the fact that European legislation forced to follow the Public Procurement Act not only public sector but also private companies working in the position of local monopolies (gas supply, water supply, public transport, etc.).The analysis is based on data from the Information System of Public Procurement in the Czech Republic. The data set is created by more than 500 observations containing information about the large construction contracts from the years 2006–2011. Details of these contracts were analysed using regressions. As a dependent variable were used price achieved (in the first model) and the number of bids (in second model). As explained variables were the numbers of bids (only in the first model), type of tender, the contract size, etc. The methodology is based on foreign papers, which are dealing with the issue of competi...
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Public procurement today represents approximately 15% of governmental expenditure in developed countries and an area with high potential for continual improvement, especially for countries with transitional economies. This article investigates competitiveness and the selection method, which are two factors of many identified, such as from studies of Transparency International or the Charles University, that relate to the limited results of procurement procedures under Czech Republic conditions. Our study identified important weaknesses in the Czech public procurement process for future reforms to consider.
World Academy of Science, Engineering and Technology, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 2012
Public procurement is one of the most important areas in the public sector that introduces a possibility for a corruption. Due to the volume of the funds that are allocated through this institution (in the EU countries it is between 10 – 15% of GDP), it has very serious implications for the efficiency of public expenditures and the overall economic efficiency as well. Indicators that are usually used for the measurement of the corruption (such as Corruption Perceptions Index CPI) show that the worst situation is in the post-communist countries and Mediterranean countries. The presented paper uses the Czech Republic as an example of a post-communist country and analyses the factors which influence the scope of corruption in public procurement. Moreover, the paper discusses indicators that could point at the public procurement market inefficiency. The presented results show that post-communist states use the institute of public contracts significantly more than the old member countrie...
Public Expenditures Through Public Procurement
European Journal of Engineering and Formal Sciences, 2018
Treaty of Rome of 1957 and following treaties on amending the Treaty of Rome contain a number of basic principles on which the EU is founded. Among these principles, the most important ones related to the public procurement are: prevention of discrimination based on nationality, free movement of goods; right and freedom of establishment of a business; the right to provide services. Spending of public money in Kosovo pursuant to the Law on Procurement is found on the following principles: economization and efficiency; equal treatment and non-discrimination; transparency; value for money. The average of open procedure application in EU countries is 73% based on notices, whereas in Kosovo is 82.80% based on notices. In the end of 2014, Kosovo commenced the development of electronic procurement platform. This project takes place within the Public Sector Modernization Project. The importance of the electronic procurement is stated in the statement of European Commission: “Modernization a...
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Problems and Perspectives in Management, 2018
The issue of reforming the institute of state (public) procurement is one of the key directions of the modernization of the administrative sector of our state. Increasing the efficiency of this institute should be recognized as one of the conditions for ensuring stable economic growth. In this regard, issues relating to the assessment of the efficiency of the use of public funds are of particular interest. The indicators of the efficiency of the activity of the public procurement sector in Ukraine in the context of the introduction of the “ProZorro” electronic procurement system are calculated and analyzed. The existing works of the individual scientists in the direction of developing indicators of the efficiency that can be used to evaluate the results of the operation of the procurement logistics system in the public sector in Ukraine are generalized. As a result, approaches have been identified that can be used to determine the effectiveness of the participation of customers, pri...
Public Procurement in Serbia in the Conditions of Global Economic Crisis
The paper deals with the analysis of volume, structure and value of public procurement in Serbia with special attention paid to quantification of public procurement impact in the conditions of global economic crisis. Namely, public procurement could be an instrument for big savings of budgetary money during the lasting of global economic crisis. One widespread model of savings is through centralization of public procurement. Another aspect relevant for savings in this area is strengthening of monitoring/control function that would lead to cost reduction. Usage of IT solutions in procurement is also very popular and promoted by EU and other donors. It is implemented through different IT-based concepts called e-procurement. For public procurement transparency is of utmost importance. Transparency of procurement procedure is fundamental mechanism for influencing stakeholders in procurement process together with provision of efficient competition among bidders. Accordingly, the procedures characterised with adequate transparency and highest possible competition create conditions that are very close to those that exist when an individual is buying with its own resources. The role of the state is inevitable in this area. By creating preconditions for free, non-discriminatory and competitive contest among the bidders, the state makes the most advantageous purchases, acquiring the best value-for-money. Transparency, free functioning competition and legal certainty in this field diminish the overall business risk in the country, thus making it more attractive to foreign companies and investors that will have significant effect to the dynamics of the future economic development in Serbia. In addition to this, the state should positively influence the procurement system by establishing adequate regulatory and institutional framework accompanied by permanent improvement of coordination mechanisms among the key stakeholders in the system. And the last but not the least, education/professionalization in public procurement plays a very important role in strategic development of a well-functioning public procurement system.
International Journal of Entrepreneurial Knowledge, 2021
Public finances are a term used to denote specific financial relations and operations taking place within the economic system between public administration institutions, on the one hand, and other entities, on the other. From an economic point of view, a public contract means an efficient allocation of resources with the aim of material and material provision of public administration bodies with such services that these bodies cannot or do not want to secure themselves. Through public procurement, a relatively high volume of public spending is realized in each developed country. Public procurement of goods, services and works by public institutions currently accounts for a relatively high percentage of GDP, estimated at more than 15% in the economies of Central and Eastern Europe. The area of procurement is one of the key areas where the public and private sectors interact financially with each other. As part of the paper, we primarily deal with below-limit and above-limit contracts...