Impact of Enabling Environment Drivers on Public-Private Partnership investment in the Transport Sector

Abstract

The research aims to analyze the impact of some drivers of the enabling environment, represented by the macroeconomic stability index (GDP, inflation, foreign exchange reserves and the ratio of debt reserves to short-term foreign exchange). And the financial market stability index (the amount of credit provided to private sectors, value of shares traded) on public-private partnerships in financing infrastructure in the transport sector for selected countries. The drivers of the enabling environment in general are considered one of the main pillars in the process of partnership between the public and private sectors. And the tangible results of the partnership between the public and private sectors that affect the daily lives of individuals have a clear impact on the economic construction of countries that seek advancement and development in all directions. On the other hand, there is an urgent need to increase the volume of financing infrastructure projects, as a result of the widening gap between the demand for infrastructure and the shortfall in the volume of supply that corresponds to it. Which requires the public sector to move towards partnership with the private sector, which has capabilities and efficiency in implementation and management. The research adopted the ARDL model to perform the regression, using longitudinal data for a group of selected countries (Brazil, Colombia, India, Mexico, Peru, Philippines, China) for the period (2000-2020). It was found that the flexibility of participatory investment in relation to changes in the gross domestic product, the inflation rate, the percentage of credit granted to the private sector, and the value of traded shares was high, while there was no significant effect of foreign exchange reserves and the ratio of short-term debt-to-foreign exchange reserves on investment. Participatory. On the other hand, it was found that the impact of GDP, the percentage of credit granted to the private sector and the value of traded shares were positive, while the effect of inflation was negative.