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Student
Title
Supervisor
Faculty
Educational Programme
Final Grade
Year of Graduation
Polina Detkova
Corruption as Public Procurement Determinant in Russian Regions
Economics
(Bachelor’s programme)
2017
Public procurement constitutes a great share of public expenditures where officials’ corruptive activity causes considerable losses. A higher corruptive environment can influence competition in a region and therefore lead to inefficient procurements. Therefore, it is important to determine whether the actual effect of regional corruption on the efficiency of contracts' awarding process is negative. This paper estimates the impact of regional corruption level on the outcomes of regional public procurers of two types: Customers, procuring for themselves, and Centralized Agencies, who have the competency to procure for customers of their region. As the Centralized Agencies should have more competent officials and might benefit from economy of scale they can alleviate negative effects of corruption.

To check the hypotheses two datasets of different types of the procurement conducted by electronic open auctions are considered:

procurement contracts concluded by regional level organizations of Public Administration activity from 2011 to 2013 and contracts concluded on granulated sugar from 2011 to 2013 (the latter lets comparison of procurement prices to market prices). The results support the idea that the effect of regional corruption on procurement results is negative and that it varies considerably depending on procurer type.

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