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The Status Quo and Development Trend of Government Procurement in China under the New Situation

Author: ShenZuo
Tutor: GengMingZhai
School: Henan University
Course: National Economics
Keywords: Government procurement tenders rent-seeking theory Procurement System
CLC: F812.45
Type: Master's thesis
Year: 2013
Downloads: 577
Quote: 0
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Abstract


Government procurement as an economic tool, the main purpose is to achieve the economicpolicy of the country-specific. Bidding as a procurement, competitive tendering system, the transparency,fairness and high government procurement of various countries of the world have become the main way.High-speed development in the new situation, China’s government procurement, has beengradually expanding the scale of government procurement, government procurement-related laws andregulations have been gradually improved. Overall, China’s government procurement activities are movingin a healthy, orderly and efficient development steadily. Government bidding as a government procurementhas become a major way for China’s government procurement. However, the Chinese government biddingcompared to international terms, is still in its infancy, there are some urgent problems.This article is mainly on our government bidding situation and development trend in the newsituation. To understand the status quo of our government bidding on government procurement the conceptclassification as well as the government procurement system, you first need to have a certain understanding,Also have a clear understanding of China’s current economic situation. Firstly, from a more detaileddescription of the government bidding, and then introduced the economic theory of governmentprocurement, development status and development direction of the analysis of the new situation ofgovernment bidding again, another use of the economic theory of government bidding and purchasinganalysis, the proposed policy recommendations based on the above analysis. The above analyticalframework of this article, the following describes in some detail the main content of the various chapters.First, we proceed from the basic concepts of government bidding, has pointed out that thegovernment bidding and purchasing some of the features: oriented market, administrative, and social andpublic and corporate procurement and personal purchases there are essential differences. Therefore, tostrengthen and attention to the norms of the legal system of the government bidding is very importantsignificance to safeguard the public interest and social justice.The second chapter introduces the main economic theories of government bidding andpurchasing. First economic man hypothesis to analyze the bidding behavior of the government, come to a rational economic man as actors (procurement, procurement administration, evaluation experts, theexecutive department) in the use of their rights at the same time, inevitably there are subjective seek profitconsciousness, therefore, in such cases, if it does not attach importance to the system specificationanti-corruption can only become a luxury. Then the article describes the theory of rent-seeking governmentprocurement, that holds the monopoly power and decision-making power of procurement information, therelevant actors in bidding other links easy there rent-seeking behavior, which often leads to corruption ingovernment procurement behavior. Again, this article analyze the relevant aspects of governmentprocurement by the principal-agent theory, to come easily lead to moral hazard behavior due to thepresence of information asymmetry, as well as the principal oversight opportunism, and many otherreasons, and corruption, which in turn led to the failure of the principal-agent.The third chapter briefly introduces the development status and development direction of thebidding of our government under the new situation. First introduced the system of our government biddingprocess, then, discussed the government bidding and purchasing in China under the new situation, thedevelopment status and existing problems, the last two government bidding.Chapter four, respectively, from the perspective of microeconomic and macroeconomicperspective to analyze the economic effects of government bidding, pointed out that the governmentbidding stresses can reduce procurement costs and improve financial efficiency, not only from themicro-level can also optimize the industrial structure at the macro level and so on. Then draw the relevantconclusions of the Government Procurement According to economic theory.The Chapter further countermeasures and suggestions to solve our government bidding, mainlydue to the following: First, the need to eliminate the phenomenon of government procurement to protectthe new situation; Second, we need to further regulate the execution of bidding procedures; then furtherbidding rules and standards curing; final build government bidding unified market.

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CLC: > Economic > Fiscal, monetary > Finance, the state's financial > China's financial > Financial income and expenditure > Expenditure
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