
KCI등재
학술저널
Directing Government Procurement as an Incentive of Production
Directing Government Procurement as an Incentive of Production
- Xiang Qun Chen
- 세종대학교 경제통합연구소
- Journal of Economic Integration
- 제10권 제1호
- 등재여부 : KCI등재
- 1995.03
- 130 - 140 (11 pages)
Due to the inefficacy of current government procurement policy (Baldwin [1970, 1984], Baldwin and Richardson [1971], and Miyagiwa [1991]), a new policy scheme that embodies the incentive of production is proposed in this paper. The policy, which ties positively the government purchase from each of the domestic firms to its sales to consumers, is found to have the effects of increasing domestic output and reducing imports. Moreover, the optimal policy is such that it induces the domestic firms to produce at the socially optimal level.