Work detail

Political connections in public procurement: a supply side analysis

Author: Mgr. Jiří Počarovský
Year: 2014 - summer
Leaders: PhDr. Ing. Jiří Skuhrovec PhD.
Work type: Finance, Financial Markets and Banking
Language: English
Pages: 90
Awards and prizes:
Abstract: The public procurement market that accounts for a significant share of the Czech GDP represents an institution of high rent
- seeking motive and corruption potential. Donations to
political parties can be used as an indirect linkage between political parties and firms as potential suppliers of public
contracts. We analyse whether connections and donations
influence the number of supplied contracts, volume of supplied
contracts and the number of bidders in the tendering process. Furthermore the impact of donations and connections on
firms’ performance and profitability is assessed. We identify significant effects on number of contracts, volume of contracts,
dependence on revenues from contracts and number of bidders
of both giving donations and history of employing a politically active person




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