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Public Expenditure and International Specialisation

Authors: Brulhart, Marius; Trionfetti, Federico; Brulhart, Marius; Trionfetti, Federico;

Public Expenditure and International Specialisation

Abstract

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. Es ist hinlänglich bekannt, dass Käufer aus dem öffentlichen Sektor dazu neigen, locale Zulieferer gegenüber ausländischen Produzenten zu bevorzugen. Wir untersuchen die Folgen solch Heimmarkt-bevorzugender Beschaffungspraktiken für die internationale wirtschaftliche Spezialisierung. In unserer theoretischen Analyse stoßen wir auf zwei Effekte. Einerseits finden wir, dass sich Länder tendenziell auf Industrien spezialisieren, auf die ein relative großer Anteil ihrer öffentlichen Ausgaben entfällt. Wir nennen dies den Anziehungseffekt ("pull effect") öffentlicher Ausgaben. Andererseits zeigt unser Modell, dass ein international symmetrisch hoher Anteil der öffentlichen Hand an der Gesamtnachfrage industriellen Agglomerationskräften entgegenwirken kann und damit die Intensität der industriellen Spezialisierung einzelner Länder verringert. Wir nennen dies den Dispersionseffekt ("spread effect") öffentlicher Ausgaben. Im empirischen Teil ziehen wir Input-Output-Daten für EULänder heran. Sowohl der Anziehungseffekt als auch der Dispersionseffekt werden von den Daten bestätigt.

Related Organizations
Keywords

economic geography, international specialisation, European Union, Public Economics, input-output analysis, public expenditure

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
0
Average
Average
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