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Does cultural difference impede the allocation of government procurement? Evidence from China

Year: 2025

Type: article

Abstract: This study investigates the impact of cultural difference on the location allocation of government procurement in China from 2015 to 2021. We find that cultural distance significantly hinders inter‐regional government procurement, and the degree of impact has an upward trend. Mechanism analysis reveals that cultural distance affects the location allocation of government procurement through information communication and identity recognition between regions. Moreover, cultural distance has a greater impact on large and medium‐sized enterprises, state‐owned enterprises and non‐high‐tech industry enterprises obtaining cross‐regional government procurement orders. Further, inter‐regional trade barriers also hinder the integration of the government procurement market.

Source: Annals of Public and Cooperative Economics

DOI: 10.1111/apce.12502

Authors: Wenqi Li, Yiping Wu, Jinyu Wu

Institutions: Shanghai Lixin University of Accounting and Finance, Shanghai University of Finance and Economics, Zhejiang Gongshang University

Language: English

Topic: Public Procurement and Policy

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Reduced inequalities

Open Access status: bronze

Funders: Shanghai University of Finance and Economics, Fundamental Research Funds for the Central Universities