Determinants of Public-Private Partnerships in Infrastructure

By Jean-François Ruhashyankiko, Mona Hammami, Etienne B. Yehoue. Social Science Research Network, 2006

311 citations recorded by the source corpus.

This paper presents an empirical analysis of the cross-country and cross-industry determinants of Public-Private Partnership (PPP) arrangements. Authors find that PPPs tend to be more common in countries where governments suffer from heavy debt burdens and where aggregate demand and market size are large. Their findings also suggest that macroeconomic stability is essential for PPPs. They provide evidence on the importance of institutional quality, where less corruption and effective rule of law are associated with more PPP projects. PPPs are also more prevalent in countries with previous PPP experiences. At the industry level, they find that PPP determinants vary across industries depending on the nature of public infrastructure, capital intensity, and technology required. They also find that private participation in PPP projects depends on the expected marketability, the technology required, and the degree of 'impurity' of the goods or services.

Subfields: Accounting, Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/62a735d011be125ad8d85f62d5e41791054277be

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Citations in the corpus

Urban rail transit PPPs: Survey and risk assessment of recent strategies (2007, background): “…(2003) and Bettignies and Ross (2004) provide a general framework for thinking about the economics of PPP while discussion for PPPs in infrastructure is found in Gomez-Ibanez and Meyer (1993), Daniels and Trebilcock (1996), Perrot and Chatelus (2000), Gomez-Ibanez (2003) and Hammami et al. (2006).”
The option value of government guarantees in infrastructure projects (2008, background): “This is the most widely used type of concession, prevalent in Argentina, Brazil, Chile and the United States, and is based on the build-operate-transfer (BOT) model (Bousquet and Fayard, 2001; Hammami et al., 2006 ).”