Public procurement aims to meet the procurement demand in the public sector. However, recent demand for public sector services has become increasingly important as part of the growing demand for co-prosperity of small and medium businesses, helping to...
Public procurement aims to meet the procurement demand in the public sector. However, recent demand for public sector services has become increasingly important as part of the growing demand for co-prosperity of small and medium businesses, helping to sharpen the competitiveness of SMEs and help boost growth.
Despite the government`s continued policies of small and medium businesses, the growth rate of SMEs, the core of the nation`s competitiveness, has continued to decrease since the government continued to decrease the competitiveness of SMEs.
Based on the procurement system, the research institute sought to establish a hypothesis on the effect of public procurement on small and medium businesses, focusing on the influence of the public procurement system, and to establish a hypothesis through empirical analysis methodology.
Basic data collected cross-sectional panel data by collecting public data such as financial performance, procurement achievements, patents and certifications of 840 companies designated as excellent procurement products from 2010 to 2016.
The analysis model applied a panel regression model, and compared the hypothesis of the hypothesis using the joint OLS, fixed effect model (FEM), and probability effects model (REM) to solve problems such as endogenous performance.
As a result of analysis, SMEs participating in public procurement confirmed that the sales growth rate of the private sector increased as the proportion of sales of public procurement accounted for the total sales. This can reaffirm the policy implication that public procurement can help the growth of the company and have a positive effect on the competitiveness, and it can be expected that the effect of the demand side policy through empirical analysis created an academic opportunity to support my claim.