Measuring public procurement transparency with an index: Exploring the role of e-GP systems and institutions

Abstract

The high expenditure on public procurement by governments makes it imperative to enhance transparency across the procurement cycle with technology-driven initiatives, such as e-procurement systems. This paper develops the Public Procurement Transparency Index and evaluates the impact of institutional reforms and membership of the World Trade Organisation Government Procurement Agreement on transparency. We use the Technology-Organisation-Environment and Balanced e-Participation Index frameworks to analyse transparency in procurement. The Public Procurement Transparency Index uses generalised least squares technique to develop the country-level transparency score. Findings indicate that e-government procurement systems promote transparency, especially in countries with robust institutional frameworks. Further, with fractional probit regression techniques we find institutional quality and infrastructure are key determinants of transparency in public procurement. The results also highlight the importance of information technology and institutional reforms as a means to enhance transparency and accountability in public procurement and offers valuable implications for policymakers.