Marco Sanfilippo on Government demand and firm growth

Marco Sanfilippo presents at the WIDER Seminar Series on 30 October 2024.

Government demand and firm growth  

Abstract

Using detailed administrative data, this paper analyzes the relationship between government demand for goods and services and firm performance in Uganda. We find that firms that sell to the government experience increases in total sales and sales per employee, but not in value added per worker. Sales to non-government buyers decline significantly. This finding is substantiated in an event study that accounts for the potential self-selection of firms into sales to government entities and heterogeneity in the timing of selection into public procurement. The reallocation effect is persistent. It is not observed following sales to large private sector buyers. A survey of firms involved in public procurement sheds light on possible mechanisms: capacity expansion-cum-credit constraints, uncertainty associated with participation in procurement and differences in the profitability of sales to public vs. private buyers.

About the presenter

Marco Sanfilippo is a Professor of Economics at the Dept. of Economics and Statistics "Cognetti de Martiis", University of Torino, an Affiliate at the Collegio Carlo Alberto and a Programme Associate and Visiting Researcher with the Global Governance Programme at the European University Institute.

His work tries to understand the drivers of private sector development in low-income countries using firm and individual level data. On these topics, he regularly consults with national and international organisations, including so far UNICEF, UNIDO, UNU-Wider, the Asian Development Bank (ADB), the African Development Bank (AfDB), ILO, IMF and the World Bank. 

WIDER Seminar Series

The WIDER Seminar Series showcases the latest research on key topics in development economics. It provides a forum for senior and early-career researchers, both in-house and external, to present recent and ongoing work related to UNU-WIDER’s current work programme.

In addition to providing a forum for both academic debate and training, the series presents an opportunity for policymakers and others interested in development to learn about the latest research methods and findings.

The WIDER Seminar Series events take place on Wednesdays. All those interested are invited to register and attend via Zoom or in person.