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Assessing vulnerabilities to corruption in public procurement and their price impact

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posted on 2023-06-10, 03:38 authored by Aly Abdou, Olivier Basdevant, Elizabeth David-BarrettElizabeth David-Barrett, Misi Fazekas
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.

History

Publication status

  • Published

File Version

  • Published version

Journal

IMF Working Paper

ISSN

1018-5941

Publisher

International Monetary Fund

Pages

31.0

Department affiliated with

  • Politics Publications

Full text available

  • No

Legacy Posted Date

2022-05-24

First Compliant Deposit (FCD) Date

2022-05-24

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