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Thursday, October 11, 2018 at 12:00pm
Kahin Center 640 Stewart Ave, Ithaca, NY, 14850, USA
Nico Ravanilla, Assistant Professor, School of Global Policy & Strategy, University of California San Diego
Political Cycle in Public Works Procurement in the Philippines
Using granular data on public works procurement in the Philippines from 2004-2017, I provide evidence of electorally driven corruption and inefficiency in the procurement of public works. First, I show that compared to non-election years, public works procurement in election years have significantly shorter bureaucratic processing time, are processed right before elections, and are more likely to be awarded to firms that are politically connected to incumbent politicians. Second, exploiting a regression discontinuity design, I show that contracts initiated before elections but are processed after elections, get awarded to firms that are politically connected to the incumbent when the incumbent (narrowly) wins the elections, but the same contracts get awarded to firms politically connected to the challenger, when the challenger (narrowly) defeats the incumbent. These patterns in procurement explain the persistent poor quality, and repeated allocation of funds for repairs of public works, especially in highly competitive districts.
Lunch will be provided.