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The Role of Competition in Effective Outsourcing: Subsidized Food Distribution in Indonesia

Should government service delivery be outsourced to the private sector? If so, how? We conduct the first randomized field experiment on these issues, spread across 572 Indonesian localities. We show that allowing for outsourcing the last mile of a subsidized food delivery program reduced operating costs without sacrificing quality. However, prices paid by citizens were lower only where we exogenously increased competition in the bidding process. Corrupt elites attempted to block reform, but high rents in these areas also increased entry, offsetting this effect. The results suggest that sufficient competition is needed to ensure citizens share the gains from outsourcing.

Ketersediaan
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Internal TNP2K 338.1959805 BAN t c.1
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Informasi Detail
Judul Seri
Working Paper
No. Panggil
338.1959805 BAN t
Penerbit
Jakarta : TNP2K.,
Deskripsi Fisik
ii, 64 Halaman, PDF
Bahasa
English
ISBN/ISSN
-
Klasifikasi
338.1959805
Tipe Isi
Digital
Tipe Media
Digital Media
Tipe Pembawa
-
Edisi
Working Paper 1 - 2018
Subjek
Kebijakan distribusi pangan
Info Detail Spesifik
-
Pernyataan Tanggungjawab
Versi lain/terkait

Tidak tersedia versi lain

Lampiran Berkas
  • The Role of Competition in Effective Outsourcing: Subsidized Food Distribution in Indonesia
    Should government service delivery be outsourced to the private sector? If so, how? We conduct the first randomized field experiment on these issues, spread across 572 Indonesian localities. We show that allowing for outsourcing the last mile of a subsidized food delivery program reduced operating costs without sacrificing quality. However, prices paid by citizens were lower only where we exogenously increased competition in the bidding process. Corrupt elites attempted to block reform, but high rents in these areas also increased entry, offsetting this effect. The results suggest that sufficient competition is needed to ensure citizens share the gains from outsourcing.
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Sistem pengelolaan pengetahuan TNP2K adalah layanan yang didirikan oleh TNP2K di bawah unit Komunikasi dan pengelolaan pengetahuan. Tujuan utamanya adalah menyediakan akses kepada berbagai informasi, data, dan pengetahuan terkait dengan program-program penanggulangan kemiskinan yang dilakukan di Indonesia.