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Institutional support of public procurement and its impact on the growth of the national economy

Tetiana ZatonatskaORCIDDaria Martynovych

Анотація

Th e paper analyzes the current institutional support for public procurement in Ukraine, existing mechanisms for evaluating its eff ectiveness and EU legislation that regulates this sector. Th e main obstacles to improving the effi ciency of public procurement in Ukraine are a reduction in the share of open bidding for procurement of one participant, the declining share of public procurement in GDP, low presence of foreign companies in the relevant market of Ukraine, limited access to the full statistical data on public procurement and lack of mechanisms for evaluating the best bid, which complicates the analysis of market effi ciency. To improve the existing methods of evaluating the eff ectiveness of public procurement, it is necessary to identify the qualitative factors when selecting the best bid, e.g. the level of competition among contractors in the procurement process by sectors of the economy, the level of orders fulfi llment, etc. Th e authors suggest a model that determines the impact of the volume of public procurement on the country's economic growth based on the extended production function given the volume of public procurement. Such a methodology allows assessing direct and indirect economic eff ects, using public resources effi ciently and directing them into priority areas of the national economy. Th e authors substantiate the need to develop and introduce free access mechanisms for selecting the best bids in public procurement for various procedures, including a number of quality indicators; to reduce the requirements in choosing the best option in the framework of public-private partnerships and support the conclusion of concession agreements; to promote the opening of public procurement market within the association with the EU; to facilitate access for small and medium enterprises to participate in tenders and implement innovative solutions in the fi eld of public procurement.

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