Language as a barrier to entry: Foreign competition in Georgian public procurement |
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| Institution: | 1. Department of Economics, University of Illinois, Urbana-Champaign, United States;2. Department of Economics, University of St. Gallen, Switzerland;1. Toulouse School of Economics, Esplanade de l’Université 1, Toulouse 31080, France;3. Department of Economics and Business, University of Catania, C.so Italia 55, Catania 95129, Italy;4. Department of Economics and Related Studies, University of York, Heslington, York YO10 5DD, UK;5. Department of Economics/NIPE, University of Minho, Campus de Gualtar, Braga 4710-057, Portugal;6. Department of Economics, University of Bergen, Norway;1. School of Economics, Nanjing University, Nanjing, China;2. Department of Economics, Carleton University, Ottawa, Canada;3. Sauder School of Business, University of British Columbia, Vancouver, Canada |
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| Abstract: | Provision of government contract information in English reduces the barriers to participation by foreign suppliers. We measure this effect using data from the country of Georgia, where English translations of government tenders were provided above specified contract size thresholds, which varied over time and across contract types. The provision of English documentation more than doubles foreign company participation for low value contracts, and leads to smaller, though still substantial, increases for higher value contracts. Because foreign bidder participation in Georgia is relatively small, the resulting impact on prices is in the order of only one percent. |
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