Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Determinants of PPP in infrastructure in developing economies

Determinants of PPP in infrastructure in developing economies Purpose – The purpose of this paper is to analyze the factors that determine Public Private Partnership (PPP) in infrastructure by using a unique data set on Private Participation in Infrastructure (PPI) for the period 1990‐2008. The study mainly focuses on developing countries, because these countries need PPP arrangement more urgently than any other group of countries. Design/methodology/approach – For the analysis, a range of advanced panel estimators, namely random‐Poisson, negative binomial, random‐generalized least square (GLS), random‐tobit, zero‐inflated Poisson (ZIP), are utilized to overcome the potential data‐related problems and for the robustness check of the estimated results. Findings – The results of the analysis suggest that large size and relatively higher income markets attract more PPP projects. The empirical evidence also suggests that macroeconomic stability, quality of regulation and governance are important factors in determining PPP in the infrastructure. Surprisingly, however, the evidence fails to provide any strong support for the role of political factors and budget constraint in the process. Practical implications – The findings of this study will help the policymakers of developing countries in framing up such policies, so as to encourage more private firms to engage in infrastructure building through PPP. Originality/value – The paper describes the first attempt of its kind to investigate the determinants of PPP in the context of developing countries. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Transforming Government: People, Process and Policy Emerald Publishing

Determinants of PPP in infrastructure in developing economies

Download PDF
18 pages

Loading next page...
 
/lp/emerald-publishing/determinants-of-ppp-in-infrastructure-in-developing-economies-OWLDXKNIui
Publisher
Emerald Publishing
Copyright
Copyright © 2012 Emerald Group Publishing Limited. All rights reserved.
ISSN
1750-6166
DOI
10.1108/17506161211246908
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to analyze the factors that determine Public Private Partnership (PPP) in infrastructure by using a unique data set on Private Participation in Infrastructure (PPI) for the period 1990‐2008. The study mainly focuses on developing countries, because these countries need PPP arrangement more urgently than any other group of countries. Design/methodology/approach – For the analysis, a range of advanced panel estimators, namely random‐Poisson, negative binomial, random‐generalized least square (GLS), random‐tobit, zero‐inflated Poisson (ZIP), are utilized to overcome the potential data‐related problems and for the robustness check of the estimated results. Findings – The results of the analysis suggest that large size and relatively higher income markets attract more PPP projects. The empirical evidence also suggests that macroeconomic stability, quality of regulation and governance are important factors in determining PPP in the infrastructure. Surprisingly, however, the evidence fails to provide any strong support for the role of political factors and budget constraint in the process. Practical implications – The findings of this study will help the policymakers of developing countries in framing up such policies, so as to encourage more private firms to engage in infrastructure building through PPP. Originality/value – The paper describes the first attempt of its kind to investigate the determinants of PPP in the context of developing countries.

Journal

Transforming Government: People, Process and Policy – Emerald Publishing

Published: May 25, 2012

Keywords: Developing countries; Private companies; Public administration; Partnership; Capital projects; Public‐private partnerships; Infrastructures

References

  • Infrastructure and Poverty Reduction – What is the Connection?
    Ali, I.; Pernia, E.M.
  • The use of foreign currency derivatives and firm market value
    Allayannis, G.; Weston, J.P.
  • The impact of privatization on the performance of the infrastructure sector: the case of electricity distribution in Latin American countries
    Andres, L.; Foster, V.; Guasch, J.L.
  • Is public expenditure productive
    Aschauer, D.A.
  • What else besides growth matters to poverty reduction?
    Balisacan, A.M.; Pernia, E.M.
  • Private provision of infrastructure in emerging markets: do institutions matter
    Banerjee, S.G.; Oetzel, J.M.; Ranganathan, R.
  • Joint Evaluation of General Budget Support: Vietnam Country Report
    Bartholomew, A.; Leurs, R.; McCarty, A.
  • The effects of infrastructure development on growth and income distribution
    Calderón, C.; Servén, L.
  • The effect of infrastructure on long run economic growth
    Canning, D.; Pedroni, P.
  • Critical success factors for ppps in infrastructure developments: Chinese perspective
    Chan, A.P.C.; Lam, P.T.I.; Chan, D.W.M.; Cheung, E.; Ke, Y.
  • Infrastructure project finance and capital flows: a new perspective
    Dailami, M.; Leipziger, D.
  • PPPs and infrastructure finance
    Davis, K.
  • Facilitating public‐private partnership for accelerated infrastructure development in India
    DEA and ADB
  • The Mystery of Capital
    De Soto, H
  • Low investment is not the constraint on African development
    Devarajan, S.; Easterly, W.R.; Pack, H.
  • Making the Connections: Infrastructure for Poverty Reduction
    DFID
  • Partnerships: for better, for worse?
    Edwards, P.; Shaoul, J.
  • The basic public finance of public‐private partnerships
    Engel, E.; Fischer, R.; Galetovic, A.
  • Infrastructure: a survey of recent and upcoming issues
    Estache, A.
  • Growth, inequality, and poverty in rural China: the role of public investments
    Fan, S.; Zhang, L.; Zhang, X.
  • Investing in infrastructure: what is needed from 2000 to 2010?
    Fay, M.; Yepes, T.
  • The role of institutional design in the conduct of infrastructure industry reforms – an illustration through telecommunications in developing countries
    Gasmi, F.; Noumba, P.; Virto, L.R.
  • Growth in sub‐Saharan Africa
    Ghura, D.; Hadjimichael, M.T.
  • Determinants of public‐private partnerships in infrastructure
    Hammami, M.; Rashyankiko, J.F.; Yehoue, E.B.
  • Poverty and transport
    Hanmer, L.; Booth, D.; Lovell, F.
  • Private participation in infrastructure in developing countries: trends, impact, and policy lessons
    Harris, C.
  • A review of cancelled private projects, public policy for the private sector
    Harris, C.; Hodges, J.; Schur, M.; Shukla, P.
  • Infrastructure, externalities, and economic development: a study of the Indian manufacturing industry
    Hulten, C.R.; Bennathan, E.; Srinivasan, S.
  • Infrastructure, growth and poverty: some cross country evidence
    Jalilian, H.; Weiss, J.
  • Joha, E.T., Janssen, M. (2010), Public‐private partnerships, outsourcing or shared service centres?
    Joha, E.T.; Janssen, M.
  • Infrastructure governance and corruption: where next?
    Kenny, C.
  • Who's Taking Risks? How the World Bank Pushes Private Infrastructure: And Finds Resistance in Some Surprising Places
    Kessler, T.
  • Poverty and regulation: how regulation can contribute to poverty reduction in developing countries
    Kirkpatrick, C.; Parker, D.
  • Private capital for public works: designing the next‐generation franchise for public‐private partnerships in transportation infrastructure
    Kopp, J.
  • Impact of PPPs to broadband diffusion in Europe
    Lattemann, C.; Stieglitz, S.; Kupke, S.; Scheider, A.M.
  • The costs of corruption for the poor – the energy sector
    Lovei, L.; McKechnie, A.
  • Infrastructure policy in Asian developing countries
    McCawley, P.
  • E‐government public‐private partnerships: the ‘Gorod’ payments system in Siberia
    McHenry, W.; Borisov, A.
  • Productivity and technical efficiency in indian states' manufacturing: the role of infrastructure
    Mitra, A.; Varoudakis, A.; Véganzonès‐Varoudakis, M.A.
  • The effect of public infrastructure and R&D capital on the cost structure and performance of US manufacturing industries
    Nadiri, M.I.; Mamuneas, T.P.
  • Infrastructure challenges in South Asia: the role of public‐private partnerships
    Nataraj; Geethanjali
  • Tapping the Market: The Challenge of Institutional Reform in the Urban Water Supply Sector
    Nickson, R.A.; Franceys, R.
  • Creating an enabling environment for private sector participation: perceptions of the private and public sectors in Malawi
    Nkhoma‐Mbawa, F.
  • Infrastructure and poverty reduction implications for urban development in Nigeria
    Ogun, T.P.
  • Reviewing PPP performance in developing economics
    Pesso, A.
  • Public‐private sector partnerships in developing countries: prospects and drawbacks
    Pessoa, A.
  • Law and finance in transition economies
    Pistor, K.; Raiser, M.; Gelfer, S.
  • Regulation and public private partnerships
    Pongsiri, N.
  • Private Participation in Infrastructure Projects Database
    PPI database
  • Urbanisation, infrastructure and besieged growth potential
    Raj, M.
  • Why has economic growth been more pro‐poor in some states of India than others?
    Ravallion, M.; Datt, G.
  • Determinants of outcomes of public‐private partnerships (PPP) in infrastructure in Asia
    Reside, R.; Mendoza, A. Jr
  • Global determinants of stress and risk in public‐private partnerships (PPP) in infrastructure
    Reside, R.E. Jr
  • Attracting foreign direct investment into infrastructure: why is it so difficult?
    Sader, F.
  • Infrastructure development and economic growth in India
    Sahoo, P.; Dash, R.K.
  • Private‐sector investment in infrastructure: rationale and causality for pro‐poor impacts
    Shah, R.; Batley, R.
  • Impact of infrastructure on output, productivity and efficiency: evidence from the Indian manufacturing industry
    Sharma, C.; Sehgal, S.
  • Macroeconomics effects of private sector participation in Latin America's infrastructure
    Trujillo, L.; Martin, N.; Estache, A.; Campos, J.
  • Assessing the welfare impacts of public spending
    Van de Walle, D.
  • New Rules, New Roles: Does PSP Benefit the Poor?
    WaterAid and Tearfund
  • Infrastructure and the millennium development goals
    Willoughby, C.
  • Demand for Infrastructure Financing in Asia
    Yang, D.Y.