| dc.description.abstract | The government procurement budget mainly comes from the taxes paid by people. Due to the increasing financial deficit and decreasing tax collection, the main issue for the government is thus trying to minimize its cost while achieving the maximum efficiency.
The purpose of this study is to examine how to improve the government procurement efficiency. The Government Procurement Act of 1999 and its amendments are to regulate the process of government procurement. By observing the detail articles of the Government Procurement Act, we discuss the issue on whether the implementation of the Act will achieve the goal of improving market transparency and procurement efficiency; also, whether the mechanism established by the Act will fulfill the object of fair competition and reducing the transaction cost.
Based on the extant literature, this research uses the data from one county government to examine the influence of several factors on government procurement efficiency in Taiwan.The factor we study disclosure of the budget, budget, type of procurement, company sizes, method of procurement, and procurement agencies.
The empirical results suggest that the more open and transparent the procurement system is, the lower the procurement cost it results. It implies that the openness of the amount of budget and the competitive bidding would reduce the procurement cost. In addition ,the number of companies participating in the bidding is shown to be negative related to the procurement cost. That is, if the procurement system is open and transparent, they will attract more companies to participate in the bidding process. Thus, under the highly competitive situation, the procurement cost would be dramatically reduced.After controlling the endogenity of budget, we find that the budget is positively correlated with the reduction of procurement cost, implying that adopting a centralized purchasing system will reduce the administrative process. This in turn reduces the transaction cost and increased the bargaining power of the government.
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