Effects of political connections on public procurement, evidence from Slovakia
|Author:||Bc. Roman Ružica|
|Year:||2020 - winter|
|Work type:|| Bachelors
|Awards and prizes:|
|Abstract:||Do political connections influence success at public procurement? By using
OLS linear regression on openly availible data, we have shown that political
connections do influence number of opposing contenders, as well as revenue.
We have shown that firms owned by politicians generaly face worse odds, while
firms owned by political donors generally face better odds, as represented by
higher revenue and smaller number of competition in tenders. The effect was
shown to be significant not only for donors and politicians, but also for firms
in their respective networks.