The return on investment in electronic procurement platforms has been elusive. Using a unique dat... more The return on investment in electronic procurement platforms has been elusive. Using a unique data set that covers purchases of pharmaceuticals and medical devices before and after the Chilecompra platform was introduced in 2004, we show that the implementation of this platform saved the government of Chile over 8% and that greater aggregation of purchases saved a further 3%. Consistent results are found when government prices are compared with those of Chile's three drugstore chains. Chilecompra has resulted in quantifiable economic benefits which are related to volume and platfom effects rather than a greater number of competitors.
Cement in Central America: Global players in a local industry
Journal of Business Research, 2016
This case discusses the origins of cement operations in Central America, and how Cemex, Holcim an... more This case discusses the origins of cement operations in Central America, and how Cemex, Holcim and Lafarge acquire these operations during 1994–2001. The case explains the manufacturing process of cement and discusses the main drivers of cost, together with data on prices, production and trade. During this period, prices rise significantly. Using case data, the reader can evaluate whether the contact of these firms across the region's national markets reduces their incentive to cut prices. If so, the expected increase in profitability may be a source of the value added for multinational investment.
The present study investigates the effect of electronic tendering on the price paid by the public... more The present study investigates the effect of electronic tendering on the price paid by the public sector for pharmaceuticals and medical devices in Chile. This study uses two panel regression models to analyze a data set that covers 6888 tenders for these items between 2001 and 2006, which spans 2004, the year when use of the Chilecompra electronic platform becomes obligatory. Model 1 explains the winning bid in each tender relative to the historic price, whereas Model 2 explains the winning bid relative to the concurrent price paid by drugstore chains. The regressors include variables which in the theoretical literature are indirectly associated with purchase prices (tender volume, the number of bidders and the time between tenders) and a Chilecompra dummy variable which captures the direct effect of the platform. The novel hypothesis of this paper is that e-tendering engages the market mechanism more effectively than traditional tendering, because of reduced corruption and less supplier collusion, which results in a direct platform effect. The empirical results support the volume effect. Greater aggregation of purchases leads to 2.8% lower prices. The evidence does not support the other indirect channels. More bidders result in lower prices, but the number of bidders fails to increase after Chilecompra. More frequent tendering leads to lower prices for medical devices, but tender frequency decreases after the implementation of the platform. Finally, the empirical results confirm the direct platform effect. Electronic tendering over Chilecompra leads directly to a greater than 8% reduction in prices. These results contribute to the literature on the returns to IT investments.
... b CINDE, Plaza Roble, Escazú, Costa Rica. ... Just a few months earlier, David Carruthers par... more ... b CINDE, Plaza Roble, Escazú, Costa Rica. ... Just a few months earlier, David Carruthers participated in a Wall Street Journal debate with Republican Senator James Leach, the sponsor of a bill banning the use of credit cards and electronic money transfers for online gambling. ...
Insertion of Costa Rica in Global Value Chains: A Case Study
This study sheds light on how Costa Rica's insertion in global value chains occurs by examini... more This study sheds light on how Costa Rica's insertion in global value chains occurs by examining governance patterns, the type of activities involved, and the level of underlying innovation in the selected value chain. The paper describes in detail two case studies of electronic-related companies in the aeronautic GVC that operate in Costa Rica as suppliers of global players in this industry. The final objective of the research is to contribute to the understanding of how public policies can be employed to improve Costa Rica's exporting and innovating performance.
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