Abstract
Using a unique data set on 49,355 high-value procurements, this chapter provides systematic evidence on favoritism in public procurement in Turkey. The yearly total of high-value public procurements, as the major area of transfers controlled by the government, has tripled in eight years. This development went hand in hand with unceasing legal amendments that increased the share of procurements that fall under the less transparent and less competitive procurement methods. The firms connected to AKP enjoyed high levels of discretion and higher contract prices in public procurements compared with the non-connected other firms. The use of public procurement for rent creation and distribution was extensive, particularly in the construction and the services sector through the TOKI projects and the Municipal procurements.
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