№ 4/2017

Fìnansi Ukr. 2017 (4): 94–103https://doi.org/10.33763/finukr2017.04.094

FINANCIAL AND ECONOMIC REGULATION

ZATONATSKA Tetiana ¹, MARTYNOVYCH Daria ²

¹Taras Shevchenko National University of Kyiv, Research ID : http://www.researcherid.com/rid/I-1647-2018
OrcID ID : https://orcid.org/0000-0001-9197-0560
²Taras Shevchenko National University of Kyiv

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

The paper analyzes the current institutional support for public procurement in Ukraine, existing mechanisms for evaluating its effectiveness and EU legislation that regulates this sector. The main obstacles to improving the efficiency 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 efficiency. To improve the existing methods of evaluating the effectiveness 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 fulfillment, etc. The 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 effects, using public resources efficiently and directing them into priority areas of the national economy. The 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 field of public procurement.

Keywords:state aid, public procurement, efficiency of public procurement.

JEL: H57, H61.

Zatonatska T. . Institutional support of public procurement and its impact on the growth of the national economy / T. . Zatonatska, D. Martynovych // Фінанси України. - 2017. - № 4. - C. 94-103.

Article original in Ukrainian (pp. 94 - 103)

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