Letting Luck Decide: Government Procurement and the Growth of Small Firms.

estimate the causal effects of demand shocks, stemming from government procurement, on the growth of small firms in Ecuador. I assemble a unique dataset using several new administrative sources and, as identification strategy, exploit a governmental procurement process that allocates public contract...

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Publicado en:Journal of Development Studies Vol. 56; no. 7; pp. 1263 - 1277
Autor principal: Fadic, Milenko
Formato: Artículo
Publicado: Taylor & Francis Ltd Jul2020
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1080/00220388.2019.1666979
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        atl: Letting Luck Decide: Government Procurement and the Growth of Small Firms.
      aug:
        au: Fadic, Milenko
        affil: Centre for Entrepreneurship, SMEs, Regions and Cities - OECD, Paris, France
      su:
        Ecuador
        Private sector
        Government purchasing
        Public contracts
        Capital
        Fortune
      sug:
        subj:
          Private sector
          Ecuador
          Other General Government Support
          Government purchasing
          Public contracts
          Capital
          Fortune
      ab: estimate the causal effects of demand shocks, stemming from government procurement, on the growth of small firms in Ecuador. I assemble a unique dataset using several new administrative sources and, as identification strategy, exploit a governmental procurement process that allocates public contracts through a randomised contest. I find a positive and significant effect of demand shocks on firm growth. On average, an increase in demand of 10 per cent will increase wage expenses and fixed assets by approximately 5 per cent during the year of the shock. I also find no evidence of spillover effects from demand shocks on sales to the public or private sector. Finally, as in other studies, I show that demand positively impacts firm growth but, contrary to other findings, this effect is temporary and only observed during the year of the shock.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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