Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia

This paper examines whether electronic procurement (e-procurement), which increases access to information and reduces personal interactions with potentially corrupt officials, improves procurement outcomes. We develop unique datasets from India and Indonesia and use variation in adoption of e-procur...

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Main Authors: Lewis-Faupel, Sean, Neggers, Yusuf, Pande, Rohini, Olken, Benjamin
Other Authors: Massachusetts Institute of Technology. Department of Economics
Format: Article
Language:en_US
Published: American Economic Association 2017
Online Access:http://hdl.handle.net/1721.1/110241
https://orcid.org/0000-0003-1918-4631
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author Lewis-Faupel, Sean
Neggers, Yusuf
Pande, Rohini
Olken, Benjamin
author2 Massachusetts Institute of Technology. Department of Economics
author_facet Massachusetts Institute of Technology. Department of Economics
Lewis-Faupel, Sean
Neggers, Yusuf
Pande, Rohini
Olken, Benjamin
author_sort Lewis-Faupel, Sean
collection MIT
description This paper examines whether electronic procurement (e-procurement), which increases access to information and reduces personal interactions with potentially corrupt officials, improves procurement outcomes. We develop unique datasets from India and Indonesia and use variation in adoption of e-procurement within both countries. We find no evidence of reduced prices but do find that e-procurement leads to quality improvements. In India, where we observe quality directly, e-procurement improves road quality, and in Indonesia, e-procurement reduces delays. Regions with e-procurement are more likely to have winners come from outside the region. On net, the results suggest that e-procurement facilitates entry from higher quality contractors.
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spelling mit-1721.1/1102412022-09-29T23:46:08Z Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia Lewis-Faupel, Sean Neggers, Yusuf Pande, Rohini Olken, Benjamin Massachusetts Institute of Technology. Department of Economics Olken, Benjamin This paper examines whether electronic procurement (e-procurement), which increases access to information and reduces personal interactions with potentially corrupt officials, improves procurement outcomes. We develop unique datasets from India and Indonesia and use variation in adoption of e-procurement within both countries. We find no evidence of reduced prices but do find that e-procurement leads to quality improvements. In India, where we observe quality directly, e-procurement improves road quality, and in Indonesia, e-procurement reduces delays. Regions with e-procurement are more likely to have winners come from outside the region. On net, the results suggest that e-procurement facilitates entry from higher quality contractors. International Growth Centre 2017-06-23T21:03:38Z 2017-06-23T21:03:38Z 2016-08 Article http://purl.org/eprint/type/JournalArticle 1945-7731 1945-774X http://hdl.handle.net/1721.1/110241 Lewis-Faupel, Sean, Yusuf Neggers, Benjamin A. Olken, and Rohini Pande. “Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia.” American Economic Journal: Economic Policy 8, no. 3 (August 2016): 258–283. © 2017 American Economic Association https://orcid.org/0000-0003-1918-4631 en_US http://dx.doi.org/10.1257/pol.20140258 American Economic Journal: Economic Policy Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf American Economic Association American Economic Association
spellingShingle Lewis-Faupel, Sean
Neggers, Yusuf
Pande, Rohini
Olken, Benjamin
Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia
title Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia
title_full Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia
title_fullStr Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia
title_full_unstemmed Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia
title_short Can Electronic Procurement Improve Infrastructure Provision? Evidence from Public Works in India and Indonesia
title_sort can electronic procurement improve infrastructure provision evidence from public works in india and indonesia
url http://hdl.handle.net/1721.1/110241
https://orcid.org/0000-0003-1918-4631
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