Abstract
In the environment of the continuous development of the Public–Private Partnership (PPP) model, China’s “dual circulation” development pattern orientation and “new normal” economic development reform provide the foundation for the development of the PPP model in the field of infrastructure. A good government investment structure and governance environment will help to improve the financial sustainability of infrastructure investment. This paper studies the mechanism of the relationship between fiscal expenditure on science and technology and the development of infrastructure PPP models based on the data of provincial PPP projects in the World Bank database and carries out an empirical analysis. The results show that the positive effect of government fiscal expenditure on science and technology and the development of the infrastructure PPP model in local regions is significant. In addition, intergovernmental competition within the political system of China will have a restraining effect on this relationship. This has certain theoretical and practical significance for the construction and implementation of the mechanism underlying intergovernmental behavior and the infrastructure PPP model.
Highlights
In 2020, President Xi proposed “to promote the formation of a new development pattern with domestic and international cycles as the main body, and further accelerate the mutual promotion of the domestic and the international cycle”
The possible innovations and research significance of this article include the following: (1) starting from the government’s fiscal expenditure on science and technology, we explore whether the allocation of financial investment by various governments in China affects the selection motivation and decision-making processes of local government financing behavior and provide a reference for the direction of financial investment; (2) we explore the factors influencing the successful application of the PPP model and provide practical decision-making references for the financing behavior of local government infrastructure construction from the perspective of the impact of financial technology investment; and
The main regression equation is defined as PN = α0 + α1 TFI + ∑ λk Controlk + ε where TFI is the variable of regional fiscal science and technology expenditure, α1 reflects the influence of the local government’s fiscal expenditure on science and technology on the decision-making of the local governments’ selection of a PPP financing model and Control represents the various control variables involved in the model, mainly including the local education level of each region (EDU), the financial development level of each region (FIN), the degree of inflation of each region (CPI), the degree of industrialization of each region (IND) and the level of opening to the outside world of each region (OPEN)
Summary
In 2020, President Xi proposed “to promote the formation of a new development pattern with domestic and international cycles as the main body, and further accelerate the mutual promotion of the domestic and the international cycle”. This view highlights that China’s domestic demand has great potential. Sustainability 2021, 13, 6193 growth and meet the needs of new urbanization development, various regions have been vigorously increasing their infrastructure construction. Under the circumstances of increasing financial pressure, local governments cannot afford the entire process of public construction needs, so they seek help from social capital. What factors affect the process of the local regional development of the PPP model? What is the reason for the slow increase in the implementation rate of the PPP model? Is there any influence path between governments that can promote the development and the success rate of the PPP model? These questions are the starting points of this article
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