Page 16 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.75, # 1, 2018, pp. 16-31

Economic Benefits of The Sustainable Public Procurement Law

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Philipp Kunz , Richard Pospíšil , Ondřej Kročil 3

1 Department of Economics, Faculty of Business and Economics, Mendel University
in Brno, Zemědělská 1, 613 00 Brno, Czech Republic, e-mail: xkunz1@mendelu.cz
2 Department of Applied Economics, Palacký University in Olomouc, Czech
Republic, e-mail: richard.pospisil@upol.cz
3 Department of Applied Economics, Palacký University in Olomouc, Czech
Republic, e-mail: ondrejkrocil@upol.cz

Received 15 January 2018; accepted 18 April 2018; published online 25 June 2018

Abstract

Public procurement law impacts the economy in numerous ways, both positively and
negatively. This paper examines these effects by analysing scholarly article,
journals, and books from various authors. However, it has not been conducted on the
ground. Also, the research is both qualitative and quantitative. The main aim of the
authors is to determine the significance of public procurement law to the economy.
Furthermore, secondary data is used for the paper. The methodology comprises
many comparisons and contracts of the views of various authors regarding the topic
of study. As per the study, procurement laws many benefits including ensuring
Value for Money (VfM), improving moral behavior among procurement officers,
protecting the environment, and boosting living standards of individuals, special
groups, and people living with disability (PLWD). Nonetheless, public procurement
sector still faces a significant number of unlawful acts from officers, especially
bribery. Taking everything into account, public procurement law is vital for
economic growth and development. As such, this paper is essential for
communicating the significance of public procurement law on the economy.

Keywords: Public Procurement, Law, Economics, Economic Benefits, Economic
Growth.

JEL Codes: H57, K23

1. Introduction

Public procurement refers to the acquisition of services, supplies and works by
public and government-owned entities. Alternatively, public procurement can be
defined as “the purchase by governments and state-owned enterprises of goods,

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