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Political Competition in Local Governments and Public Procurement

Publication

Abstract

Municipalities in the Czech Republic manage 23.9% of the total public expenditure (approximately 10% of the GDP), with approximately half of these funds redistributed through public procurement. This is a very significant amount of public resources that should be given due attention.

This analysis demonstrates that the composition of municipal governments significantly influences the process of public procurement. Our methodology allows to interpreting the estimated relationships as causal, rather than as mere correlations.