The Credit Channel of Public Procurement

Ricardo Duque Gabriel

No 171, GEE Papers from Gabinete de Estratégia e Estudos, Ministério da Economia

Abstract: Public procurement accounts for one third of government spending. In this paper, I document a new mechanism through which government procurement promotes firm growth: firms use procurement contracts to increase the amount of cash-flow based lending. I use Portuguese administrative data over 2009-2019 and exploit public contests as a source of quasi-exogenous variation in the award of procurement contracts.

Keywords: Credit; Collateral; Corporate Finance; Fiscal Policy; Public Procurement (search for similar items in EconPapers)
JEL-codes: E62 G38 H32 H57 H81 (search for similar items in EconPapers)
Pages: 74 pages
Date: 2022-11, Revised 2022-11
New Economics Papers: this item is included in nep-fdg
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Citations: View citations in EconPapers (1)

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https://www.gee.gov.pt//RePEc/WorkingPapers/GEE_PAPERS_171.pdf First version, 2022 (application/pdf)

Related works:
Journal Article: The Credit Channel of Public Procurement (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:mde:wpaper:0171

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