A Study Of Suppressing Rent-seeking Activities In Government Electronic-Procurement

Rent-seeking phenomenon has already caused the concern of society in government procurement areas. This article's purpose is to point out that government electronically procurement can suppress rent-seeking and prove its effectiveness by analyzing rent-seeking activities in government procurement. This article analyzes rent-seeking theories. Basic on elaborating the reason and meanings of"rental", it confirms the concept and the characteristic of rent-seeking activities. This article uses rent-seeking theory to analyze all kinds of rent-seeking activities in the government procurement. And it tries to specify the reasons of the rent-seeking in the government procurement process from economics view. It points out that rent-seeking activities have injured the social welfare by analyzing the rent-seeking activities and the benefit-seeking activities contritely. On the base of the theories research of former scholar, this article points out government electronically procurement can suppress rent-seeking. And it certificates its effective resolves in rent-seeking activities in government procurement by the further analysis of the system innovation theories and the Congleton model. Government electronically procurement is the procurement innovation. It can open the information to the public. It is not only provided the equal competition opportunity for the suppliers, but also standardized the process of procurement. Government electronically procurement has evolved a style of the inspection of procurement requirement department, public finance section and the procurement center. It also adopted the system of"Specialist committee assessment on-line", which took account of equity and efficiency. It accords with our national conditions and it is the best way to resolve rent-seeking activities in government procurement. And this article take the case of government electronically procurement in Hubei Province, through the statement of it's electronically operate flow and the analysis of suppress effect. It gives the further evidence on government electronically procurement, that is, government electronically procurement can avoid rent-seeking activities in government procurement.