The Share of Municipality-Owned Enterprises in Local Public Procurement and Their Effectiveness: An Example of Bursa Metropolitan Municipality

Article Information
Journal: Business and Economics Research Journal
Title of Article: The Share of Municipality-Owned Enterprises in Local Public Procurement and Their Effectiveness: An Example of Bursa Metropolitan Municipality
Author(s): Erdal Eroglu
Volume: 11
Number: 4
Year: 2020
Page: 1035-1048
ISSN: 2619-9491
DOI Number: 10.20409/berj.2020.297
Abstract
Factors such as urbanization, population growth, and localization have increased the demand for services of municipalities. With the increasing demand for services, the role of municipal economic enterprises established within the municipality has become important in the realization of service delivery. While the expenditures of the municipalities increased with the services provided by the municipality, there was no increase in the revenues of the municipality in the same direction. This situation brought up the problem of financing in municipalities. The main issue in solving the financing problem is the efficient use of resources. One of the important ways that municipalities, which have become an important buyer in the private market, will use in the efficient use of resources is to make public procurements transparent and competitive. The purpose of this study, which examines the shares of municipal economic enterprises in local public procurements through Bursa Metropolitan Municipality sample, is to reveal whether competition and equal treatment has been carried out in municipal tenders. In this context, the public procurements made by the Bursa Metropolitan Municipality between the years 2010-2020 from the electronic public procurement platform were examined and the competition conditions were analyzed in the tenders participated by the municipal economic enterprises. Results achieved in the study show that Bursa Metropolitan Municipality has an important share in municipal economic enterprises in public procurements and does not comply with the principles of competition and equal treatment of the municipality.

Keywords: Municipality, Municipality-Owned Enterprises, Public Procurement, Competition, Effectiveness

JEL Classification: H57, H70, H76

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