Highway to Economic Growth? Competition in Public Works Tenders in the Democratic Republic of Congo

14 Pages Posted: 10 Jan 2013

See all articles by Sergio Galletta

Sergio Galletta

ETH Zürich

Mario Jametti

University of Lugano

Agustin Redonda

University of Lugano

Date Written: December 28, 2012

Abstract

The Democratic Republic of Congo (DRC) is one of the poorest countries in the World. The construction sector will play an essential part to bring the country on the path of economic growth, and competition within the sector is crucial to achieve this goal. In this paper we analyze the effect of competition in public works tenders in the DRC. Using a unique and newly assembled database on tenders we find that the number of participating bidders and the observed spread of submitted bids both significantly reduce contract prices, confirming our prior that competitive pressure can enhance the overall performance of the sector.

Keywords: construction, competition, tenders, public works

JEL Classification: D440, L130, L740

Suggested Citation

Galletta, Sergio and Jametti, Mario and Redonda, Agustin, Highway to Economic Growth? Competition in Public Works Tenders in the Democratic Republic of Congo (December 28, 2012). CESifo Working Paper Series No. 4048, Available at SSRN: https://ssrn.com/abstract=2198788 or http://dx.doi.org/10.2139/ssrn.2198788

Sergio Galletta

ETH Zürich ( email )

Rämistrasse 101
ZUE F7
Zürich, 8092
Switzerland

Mario Jametti (Contact Author)

University of Lugano ( email )

Via Sole 14
CH-6904 Lugano, TN Ticino 6900
Switzerland
+41 58 666 4269 (Phone)

HOME PAGE: http://www.people.lu.unisi.ch/jamettim/

Agustin Redonda

University of Lugano ( email )

Via Giuseppe Buffi 13
Lugano, TN Ticino 6900
Switzerland

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