Comparison of German and Czech Public Procurement System and Economic Impacts

Abstract

Purpose: The paper determines the similarities and divergences in the public procurement system in Germany and the Czech Republic. The authors assessed the contribution of the public procurement system in each country’s GDP, identified similarities in the procurement process and how they affect the overall outcome. Divergences in the two countries procurement process and how they affect the outcome were also identified. Design/Methodology/Approach: The research was designed by using secondary research method as it has a wide scope that would be a challenge to achieve using primary research method. Secondary research methods were utilized to generate data which is analyzed by quantitative techniques. Findings: The most notable similarities include the use of e-procurement and the different types of public procurement contracts to enhance transparency and efficiency. Apart from that, there are some divergences where Germany seems to be a little bit more efficient compared to the Czech procurement system. Some of the divergences include higher corruption levels in the Czech Republic system than in Germany and also higher efficiency in terms of processing tender in German system than in the Czech Republic. Practical Implications: The study compares the public procurement systems in Germany and the Czech Republic and underlines potentials and disadvantages of both systems. Originality/Value: The research delivers a legal-economic comparison of German and Czech public procurement systems, including influence and effects made by European Law.