Abstract
[full article and abstract in English]
 This study aims at investigating and assessing the efficiency of the public procurement system and its main factors in the Republic of Kosovo. For this purpose, we collect data for a random sample of 243 economic operators (companies) eligible to benefit from public funds. We analyzed the data using descriptive analysis as well as econometric modeling, and we have used classical and ordinal logistic (o-logit) econometric models. In the absence of a direct indicator, the efficiency of procurement is measured by two proxy variables, discrimination- tendering criteria and a favor made to specific companies to win tenders, by their average as a third optional variable. Discrimination and favor are found to be present to a large extent, meaning that efficiency is very low. Among the major factors of the low efficiency of public procurement were political intervention, the non-transparency of the procurement process, a lack of capacity to implement procurement legislation and manage contracts, corruption and insufficient knowledge about procurement. Based on these results, important implications would lie in introducing measures for enhancing transparency, improving legislation, recruiting especially qualified staff or providing continuous training for the current procurement staff as well as improving the motivation of the staff to properly implement legislation and manage the procurement contracts.
Highlights
Kosovo is a small country located in southeast Europe
We find that political intervention and non-transparency are one of the main determinants of the low efficiency in the public procurement system
We have analyzed in this paper the current situation and the main determinants of efficiency in the public procurement system in Kosovo
Summary
Kosovo is a small country located in southeast Europe It is categorized as a low-middle income country with around $3500 income per capita. It strives to improve the rule of law and establish efficient administrative standards. Public procurement refers to the process of purchasing goods and services from another party in order to fulfill the needs and obligations of an institution. Public procurement includes three types of transactions: goods, works and services. According to Coggburn and Rahm (2005), the procurement process is crucial for the government as a way of purchasing the necessary goods and services through a competitive tendering. Violations of any of the abovementioned objectives would reduce efficiency and potentially impair social welfare
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