DP13266 | The WTO Government Procurement Agreement as a Commitment Device: A First Appraisal

Publication Date

10/20/2018

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Abstract

This paper presents novel reduced form evidence on the association between international trade agreements that include disciplines on public procurement practices reflected in the WTO Agreement on Government Procurement (GPA) and preferential trade agreements (PTAs) and public sector imports following the 2008 financial crisis. The results are suggestive of such international disciplines acting as an effective commitment device: GPA membership is associated with a significantly higher import share following the crisis than is observed for countries that are not members. We also find evidence that the GPA and PTAs that cover public procurement are partial substitutes.