Public Works Procurement: Efficiency, Corruption, and Governance. A Review

This chapter provides a review of contributions to the analysis of efficiency in the execution of public works contracts, particularly in the context of Italian public works. Over the past two decades, research has significantly advanced the understanding of public procurement processes, contract management and the role of institutional quality. Using both theoretical models and advanced empirical techniques, such as Data Envelopment Analysis (DEA) and bootstrap methods, research has shed light on the main determinants of inefficiency, including incomplete contracts, corruption and decentralisation. This chapter classifies these contributions according to their methodological approaches and results, highlighting their impact on the broader literature on public procurement and governance. The review also discusses the policy implications arising from this body of research, emphasising the need for institutional reforms, increased competition and improved skills of contracting authorities to ensure more efficient execution of public works. Finally, the chapter identifies areas for future research, in particular the application of these methods to different economic sectors and geographical contexts.