Evaluating the regional economic security by the efficiency of public procurement

Abstract

Subject. In Russia, public procurement serves as a mechanism for the government to regulate the economy. Currently, there are diverse views on its efficiency. However, neither efficiency evaluation methods shed the light on the relationship of important indicators, such as competition and economy, which shape the regional economic security. Objectives. We herein evaluate the competition and budgetary savings, assessing metrics of the average number of participants and a median drop in the price for a purchase in the region with reference to the regional economic security. Methods. The study relies upon general scientific and mathematical-statistical methods. Results. A growth in the average number of participants per a purchase is showed to have a positive impact on the median drop in the price, that is, the competition contributes to savings. Based on Tenderplan data, the Russian regions were dynamically analyzed from 2014 through 2018 in terms of public procurement efficiency. There are sustainably well-being regions and those that threaten to the economic security or simply demonstrating inefficient operations. Conclusions. Controllers of public procurement in regions should especially monitor suspicious regions, thus contributing to possible improvements in the area. The findings will help further research to evaluate the relationship of public procurement indicators and find ways for regulating them.