Who benefits from the procurement financed by Multilateral Development Banks?
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Published:2023-05-31
Issue:1
Volume:36
Page:43-69
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ISSN:0954-1748
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Container-title:Journal of International Development
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language:en
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Short-container-title:J of Intl Development
Author:
Martínez‐Galán Enrique1ORCID,
Proença Isabel2ORCID
Affiliation:
1. Centre for African and Development Studies, ISEG‐Lisbon School of Economics and Management University of Lisbon Lisbon Portugal
2. ISEG‐Lisbon School of Economics and Management University of Lisbon, REM – Research in Economics and Mathematics, CEMAPRE Lisbon Portugal
Abstract
AbstractWe use a gravity model to inquire about the factors that influence the amount of public procurement awarded by developing countries with funding from Multilateral Development Banks (MDBs), based on 169 000 contracts. We reach four main conclusions. First, procurement disproportionately benefits firms of low‐ and middle‐income countries and not those of MDBs' larger shareholders. Second, firms of upper‐middle‐income countries can compete successfully with those of developed countries. These two conclusions are in line with MDBs' development mandate. However, we also find that certain MDBs favour domestic firms and that having good diplomatic relations matters when awarding contracts.
Funder
Fundação para a Ciência e a Tecnologia
Subject
Development,Geography, Planning and Development
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