Abstract
Government officials view con? tracting out of services as a de? sirable means of managing and modernizing the public sector. A number of studies have investigated the benefits of con? tracting out and the challenges it brings for service delivery (Hodge 2000; DeHoog and Salamon 2002). Other studies have addressed the circumstances under which government officials seek to set up contractual relation? ships. Various factors such as the local market structure for services and the size of the local?
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