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Political Connections and Public Procurement: Evidence from the Czech Republic
Palanský, Miroslav ; Janský, Petr (advisor) ; Soudek, Jan (referee)
According to the existing literature, political connections can add value to the connected firms. This thesis analyzes whether political connections created by donations to political parties affect the allocation of public funds through procurement spending in the Czech Republic. Using a novel dataset on all corporate political contributions made between 2006 and 2013, it focuses on the extreme change in control of the regional councils following the 2008 elections. We start by observing the general patterns of behavior of regional governments as contracting authorities which seem to support the potential of corruption. In the second part, we focus on the effects of donations to the two most powerful political parties in the regional councils during the examined period on regional public procurement outcomes. The applied econometric methods suggest that donating companies win public contracts of higher value compared to non-connected firms in times when their supported party is in power. Controlling for the size of the firms, the results remain significant and confirm the notion that larger companies win contracts of higher value than smaller firms. Powered by TCPDF (www.tcpdf.org)
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Political connections and ruling in public procurement disputes: Are the decisions of the Czech Office for the Protection of Competition politically biased?
Viktorinová, Marie ; Palanský, Miroslav (advisor) ; Janský, Petr (referee)
Marie Viktorinová Abstract The data about financial support of firms and individuals to politicians provide an incentive for research as the connections between businesses and politics raises the problem of conflict of interest. Using data about results of disputes in public procurement tenders from 2004 to 2018, data about donations to political parties and data about parties in power of municipalities, regions and ministries between the years 2006 and 2018, this thesis investigates the effect of political connections on the results of disputes in public procurement. The analyze focuses on hypotheses about significant effect of having complainant or chosen contestant connected to party in power of government, municipality, region or ministry on the result of dispute being serious misconduct against fair competition, where distinct subsets of disputes with respective contracting authority are considered. Using logistic and probit regressions, the results of this thesis point out a significant positive relationship between misconduct found and chosen contestant connected to any party. Finally, the thesis lays down its constrictions and few suggestions for future research.
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Does donating to political parties pay off? Evidence from the Czech Republic
Navrátilová, Alice ; Palanský, Miroslav (advisor) ; Semerák, Vilém (referee)
According to the existing literature, political connections can lead to favouritism towards the connected companies. This thesis approximates connections through donations to political parties and analyses their effect on the value of public procurement administered by Czech Ministries between 2007 and 2017. Donations from legal entities are used along with contributions from natural persons who are matched with companies' officials to account for the possibility of masking the real identity of donors. We analyse the impact of donations on procurement from three perspectives. Firstly, we focus on donations made to parties with the largest representation in government, but do not find that firms connected to these parties win more favourable procurement contracts. We then extend the analysis to include other political parties present in the Chamber of Deputies during the examined period and each election term is assessed separately. The results suggest that donating firms received contracts of higher value than non-donating firms during two of the three election periods. Finally, we develop a novel panel-based approach with the aim to determine whether there exists a causal relationship between political connections and public procurement. The results show that connections to political parties...
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Political Connections and Public Procurement: Evidence from the Czech Republic
Palanský, Miroslav ; Janský, Petr (advisor) ; Soudek, Jan (referee)
According to the existing literature, political connections can add value to the connected firms. This thesis analyzes whether political connections created by donations to political parties affect the allocation of public funds through procurement spending in the Czech Republic. Using a novel dataset on all corporate political contributions made between 2006 and 2013, it focuses on the extreme change in control of the regional councils following the 2008 elections. We start by observing the general patterns of behavior of regional governments as contracting authorities which seem to support the potential of corruption. In the second part, we focus on the effects of donations to the two most powerful political parties in the regional councils during the examined period on regional public procurement outcomes. The applied econometric methods suggest that donating companies win public contracts of higher value compared to non-connected firms in times when their supported party is in power. Controlling for the size of the firms, the results remain significant and confirm the notion that larger companies win contracts of higher value than smaller firms. Powered by TCPDF (www.tcpdf.org)
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