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Article
Publication date: 5 December 2023

Tippatrai Saelawong, Torplus Yomnak, Thanee Chaiwat, Siwat Poopunpanich and Charoen Sutuktis

This study evaluates the effect of transparency measures on public procurement efficiency, focusing on Thailand’s Infrastructure Transparency Initiative (CoST). This study aims to…

Abstract

Purpose

This study evaluates the effect of transparency measures on public procurement efficiency, focusing on Thailand’s Infrastructure Transparency Initiative (CoST). This study aims to understand its impact on the country’s public infrastructure procurement practices.

Design/methodology/approach

This paper analyses Thailand’s government construction procurement data, focusing on budgetary savings and CoST process participation. Budgetary savings are this study dependent variable, while the main intervention variable is the adoption of the CoST data disclosure standard. This study uses multiple linear regression, fixed-effects model and propensity score matching with the logit model for a comprehensive analysis.

Findings

This study shows that using the CoST data disclosure leads to notable budget savings in Thai public construction procurement. With CoST’s introduction, the savings rose by Baht 9.6m, and even with added controls, the savings remained significant at around Baht 3.3m. The savings consistently stay near 5% across different models. The propensity score matching method confirms these results, consistent with factors such as open bidding and agency categorisation.

Research limitations/implications

This study might not capture all benefits, especially non-financial ones. Thailand’s unique context and potential biases in data sources also need consideration.

Practical implications

CoST evidence backs Thailand’s procurement transparency. This study recommends broadening CoST, streamlining online platforms and promoting digital public engagement. Training stakeholders and partnering with state-owned enterprises and local agencies is vital to align with CoST and mitigate risks.

Originality/value

This study shows a clear link between transparency from information disclosure and budget efficiency in public procurement, using data from Thailand. It highlights the potential of transparency measures in developing countries.

Details

Journal of Financial Crime, vol. 31 no. 6
Type: Research Article
ISSN: 1359-0790

Keywords

Article
Publication date: 12 June 2023

Thanee Chaiwat and Torplus Yomnak

The economic theory of crime states that crime can be prevented by either increasing the probability of being detected or increasing penalties. However, individual responses to…

Abstract

Purpose

The economic theory of crime states that crime can be prevented by either increasing the probability of being detected or increasing penalties. However, individual responses to fines and imprisonment may vary, and corruption can reduce both the probability of being detected and punishment costs. The purpose of this study is to investigate the effects of corruption on crime prevention.

Design/methodology/approach

This study used an experiment to investigate the effects of criminalisation and corruption. This study tested whether individuals respond differently to variables on the probability of being detected and punishment costs and whether corruption affects these variables.

Findings

The results of this study demonstrated that increasing the probability of being detected initially reduces crime rates more efficiently than increasing penalties, then the efficiency gradually reduces, and that corruption reduces the effectiveness of detection and punishment.

Research limitations/implications

Ineffective corruption prevention is not solely attributed to corrupt police, as illicit payments and personal connections also contribute to corruption.

Practical implications

Policymakers and law enforcement agencies should focus on preventive measures by increasing the chance of being detected, creating transparency and encouraging public participation to address corruption problems thoroughly.

Originality/value

This research conducted in Thailand investigates the effectiveness of crime-prevention mechanisms and considers the impact of corruption. This study offers insights into how criminals perceive detection and punishment costs under different social-political environments.

Details

Journal of Financial Crime, vol. 31 no. 1
Type: Research Article
ISSN: 1359-0790

Keywords

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