Public expenditure and international specialisation

It is widely recognised that public-sector purchasers tend to discriminate in favour of domestic suppliers. We study the consequences of home-biased public procurement on international specialisation. In the theoretical analysis we find two effects. First, a country will specialise in the sector for which it has relatively large home-biased procurement (the "pull" effect). Second, home-biased procurement can counter agglomeration forces and thereby attenuate the overall degree of international specialisation (the "spread" effect). Our empirical analysis, conducted on input-output data for the European Union, yields supporting evidence for the pull effect and some support for the spread effect.

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Year of publication:	2001
Authors:	Brülhart, Marius ; Trionfetti, Federico
Publisher:	Hamburg : Hamburg Institute of International Economics (HWWA)
Subject:	Internationale Arbeitsteilung \| Öffentliche Ausgaben \| Skalenertrag \| Monopolistischer Wettbewerb \| Allgemeines Gleichgewicht \| Theorie \| Regionale Input-Output-Analyse \| EU-Staaten \| public expenditure \| international specialisation \| economic geography \| European Union \| input-output analysis

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Series:	HWWA Discussion Paper ; 141
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	343171643 [GVK] hdl:10419/19410 [Handle] RePEc:zbw:hwwadp:26299 [RePEc]
Classification:	R15 - Econometric and Input-Output Models; Other Models ; F1 - Trade ; R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location ; H5 - National Government Expenditures and Related Policies
Source:	EconStor

Persistent link: https://www.econbiz.de/10010295571