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The Impact of Political Cycles’ Changes on Local Public Procurement: Evidence from Portuguese Municipalities

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Detalhes bibliográficos
Resumo:According to the World Bank, in 2018, Public Procurement amounted to 12% of the global GDP, literature providing evidence on the strong bond between public expenditure and politics. This dissertation project aims to present a deeper exploration of these topics, taking Portuguese municipalities as the object of study. The main goal was to investigate the impact of changes in the political context (party, mayor, and political position) of local governments in this country in the public procurement expenditure. These changes were triggered by local elections that happen every 4 years, the time-period considered being from 2008 to 2020. The analysis was supported by a dataset with information on the electoral outcomes for each municipality and corresponding public procurement results during this time frame, data collected from government websites and Portuguese journals. For the development of this research, the Difference-in-Differences method was applied, one of the most used procedures for estimating causal effects of events over time. Main results suggest that the most political volatile municipalities are poorer, with less firms, tourism, and tenure of the parties in charge, being mainly located in the interior and northern areas of Portugal. These town halls registered negative values of public procurement outcomes (volume, value, and average value) after both 2013 and 2017 local elections, contracts celebrated regarding work being the most affected by these events.
Autores principais:Ferreira, Catarina Sofia Antunes
Assunto:Public Procurement Politics Local Governments Portugal Difference-in-Differences
Ano:2022
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
Descrição
Resumo:According to the World Bank, in 2018, Public Procurement amounted to 12% of the global GDP, literature providing evidence on the strong bond between public expenditure and politics. This dissertation project aims to present a deeper exploration of these topics, taking Portuguese municipalities as the object of study. The main goal was to investigate the impact of changes in the political context (party, mayor, and political position) of local governments in this country in the public procurement expenditure. These changes were triggered by local elections that happen every 4 years, the time-period considered being from 2008 to 2020. The analysis was supported by a dataset with information on the electoral outcomes for each municipality and corresponding public procurement results during this time frame, data collected from government websites and Portuguese journals. For the development of this research, the Difference-in-Differences method was applied, one of the most used procedures for estimating causal effects of events over time. Main results suggest that the most political volatile municipalities are poorer, with less firms, tourism, and tenure of the parties in charge, being mainly located in the interior and northern areas of Portugal. These town halls registered negative values of public procurement outcomes (volume, value, and average value) after both 2013 and 2017 local elections, contracts celebrated regarding work being the most affected by these events.