Public-private Partnership Investment Research Articles

Public–private partnerships and human development

Abstract The restructuring of a state is crucial for promoting human development. For this reason, public–private partnerships (PPPs), the so-called “fourth revolution” in reinventing the state, have become a global strategy of choice. Yet, existing studies on PPPs mainly analyze their effect on growth or inequality, not human development. This article uses data from the human development index (HDI) database to investigate the impact of PPP projects on human development. With the increasing scale of public infrastructure investments and the need to improve public services, it is necessary to examine whether PPPs are justified in improving social welfare. We conducted the analysis for all low- and middle-income countries using propensity score matching (PSM) and multivariate analysis. Additionally, we present the HDI predictions. We believe that assessing the impact of public–private cooperation on increasing social welfare, reducing social exclusion, and implementing investments with a robust social impact is essential. Overall, we found a statistically significant effect of PPPs on human development, demonstrating that the growing scale of PPP investments in low- and middle-income countries enhances their HDI.

Effects of Income Distribution and Fiscal Policy on Growth in Turkey: A Kaleckian Analysis

This study examines the effects of functional income distribution and fiscal policy on growth in Turkey. A post-Kaleckian open economy model is used to analyze the Turkish economy by integrating fiscal policy tools into the econometric model, such as tax burdens on labor and capital and government expenditure for 1988–2017. The novelty of our study is that it considers the private profit motive and rollback of government activities by including public-private partnership investments in the model. Our findings suggest that government ideologies in providing services through different channels do not cause alteration in the domestic demand regime; it stays wage-led in all scenarios we applied. Yet, the overall regime turns out to be profit-led since net export is sensitive to labor costs. JEL Classification: E12, E62, L33

‘The assisting hand’ or ‘the grabbing hand’: experimental evidence from PPP investments in the implementation of official rotation systems

In the context of uneven and insufficient social development, examining the relationship between the official rotation system and the quality of government services offers an effective guide to addressing government misconduct and reducing wealth disparities. This study employs a public goods game experiment to simulate the investment scenario of Public-Private Partnership (PPP) projects, focusing on three pivotal questions: Firstly, do the ‘assisting hand’ and the ‘grabbing hand’ of officials differ between developed and underdeveloped regions? Secondly, can the interregional rotation system enhance the ‘assisting hand’ and weaken the ‘grabbing hand’ in both areas? Lastly, can political tournaments more effectively alleviate the issue of ‘government misconduct’? The experimental results reveal: Firstly, low economic growth potential limits the ‘assisting hand’ of officials while fostering the ‘grabbing hand’; secondly, the interregional rotation system strengthens the ‘assisting hand’ in underdeveloped areas but weakens it in developed regions; finally, compared to the interregional rotation system, the tournament system reinforces the ‘assisting hand’ in developed regions. These findings provide micro-level insights into the relationship between official behavior and regional characteristics, and offer significant implications for the reform of governance policies.

The State of Public-Private Partnerships in Times of Global Economic Disruption

Growth in large private business enterprises in the 20th century established an environment that enabled a competitive relationship through Public-Private Partnerships (PPP) with the public sector, which historically suffered from inefficiencies and an over-reliance on projects and services, especially in emerging economies. PPPs can positively impact public safety, quality of life, new economic opportunities, poverty reduction, and benefit from long-term private capital and outside expertise. However, PPP investment is sensitive to critical factors such as: the macroeconomic environment, institutional and regulatory conditions, market size, rule of law, and enforceable contracts, among others. Thus, managing PPP projects is a very complex task, due to its multidisciplinary characteristics and the involvement of multiple stakeholders. In times of global economic disruption, this task becomes even more challenging. This study presents threats and opportunities for the execution of PPPs in times of global crises and their relationship with globalization trends.

Examining public private partnership investment in energy towards achieving sustainable development goal 7 for ASEAN region

The gradual progress in aligning financial flows with the adoption of clean technologies reveals a persistent funding gap, signaling a global misallocation of capital. Addressing this challenge necessitates political leadership and robust policies to counteract the insecurities impeding the redirection of financial flows. This study investigates into the impact of energy-related public–private partnership investments (PPPIE) and macro-environmental variables on the attainment of Sustainable Development Goal 7 (SDG7) across Association of Southeast Asian Nations (ASEAN) member countries from 1999 to 2021. Employing the Dynamac command technique, we conduct autoregressive distribution lag analysis and the Bounds Cointegration Test to evaluate ASEAN’s efforts in achieving SDG7. Results indicate that a ten-year exogenous shock to the GDP growth rate initially causes a temporary decline in both GDP and PPPIE, albeit not statistically significant. However, in the long run, the shock becomes statistically significant, correlating with a negative decline in the GDP growth rate. This underscores the negative impact of external factors like the COVID-19 pandemic on the economic growth of ASEAN member countries. Specifically, a percentage increase in PPPIE leads to an 8.3% reduction in the GDP growth rate, revealing a detrimental and unsustainable impact on the economy. This signifies that energy investments in the ASEAN region, are predominantly unsustainable and adversely impact economic growth. Moreover, these energy investments contribute to a significant 52.6% increase in greenhouse gas emissions, indicating a substantial setback in the region’s progress towards meeting SDG7’s clean energy objectives by 2030. This suggests the present state of PPPIE does not align with sustainable clean energy goals of the region. Therefore, recommendations should include diversifying energy sources and investment strategies to enhance sustainable clean energy. Also, policymakers and researchers should reassess the terms and conditions of PPPIE, refining frameworks for private sector involvement to align with long-term economic sustainability goals.

Determinants influencing ecological footprints of China; An empirical evidence from factor analysis

China has advanced significantly in the last decades, but ecological concerns raise questions about the nation's long-term affluence. The hunt for possible determinants in explaining the quality of the environment (ecological footprint) is still in progress. Therefore, the current study attempts to investigate the influencing factors from various explanatory variables (eco-innovation, economic complexity, renewable energy consumption, economic growth, natural resource rent, foreign direct investment, the energy intensity level of primary energy, economic development, Public-private partnerships investment in energy, electric power consumption, and population growth) through factor analysis augmented with Back Propagation Neural Network (BPNN) approach. The annual data from 1995 to 2021 for China is retrieved for empirical analysis. The data set comprises the factors classified into training, validation, and testing divisions with a ratio of 2:1:1. The outcomes revealed that extracted factors are robust in explaining China's ecological footprint variation. Outcomes of the BPNN algorithm suggest that renewable energy consumption, eco-innovation, economic complexity, natural resource rent, and electric power consumption are the most useful determinants in explaining the ecological footprints of China. The study furnishes the possible policy implications of the research.

Impact of public-private partnerships investment and FDI on CO2 emissions: A study of six global investment countries

This study investigates the impact of public-private partnerships investment in energy and FDI on environmental quality in global investment countries during 1995–2018. Economic growth, technological innovations and consumption of clean energy are also considered as additional determinants of environmental quality. The study applied advanced panel econometric models. Our empirical results affirm the evidence of a long-run association between environmental quality and its determinants. Specifically, economic growth as well as clean energy use improves quality of environment by lowering carbon emissions. Public-private partnerships investment in energy, FDI and technological innovations decrease carbon emissions. Energy consumption (generated from fossil fuel) increases carbon emissions. Heterogeneous causality evidence indicates the presence of a unidirectional causality relation from carbon emissions to public-private partnerships investment in energy and a feedback causality occurs between consumption of clean energy and CO2 emissions. This empirical evidence provides new insights for both policymakers and governments to support public-private partnership investments in energy for the improvement of quality of environment in global investment countries.

Research on Public-Private Partnership (PPP) Investment under Build - Operate - Transfer (BOT) and Build-Lease-Transfer (BLT) Contract Types in the High-Speed North-South Rail Project (HSR), the Hanoi - Vinh Line

Introduction The North-South high-speed rail development is a completely new field in Vietnam. Calculations show that Vietnam's high-speed rail system will attract a significant amount of investment, which is 4-5 times higher than developing highways, and the annual operation and maintenance costs are three times higher. Methods Public-Private Partnership (PPP) investment is effective and required to ease the strain on the state budget. This research aims to build a database for calculating the financial efficiency of the high-speed rail project (Hanoi -Vinh line), thereby establishing a mechanism for sharing benefits and risks between the state and investors through financial scenarios: applying Build - Operate - Transfer (BOT) contracts with state participation rates of 50% and 80%, respectively. Results The qualitative research method is used to determine the indicators influencing the project's benefits and costs, assume and adjust economic, financial, and fare parameters based on Vietnam's actual conditions, and investigate and survey the affected areas to assess passenger transport demand. Conclusion Furthermore, the financial efficiency of the project is calculated, and various participation options for the parties involved are proposed to attract investors.

PUBLIC-PRIVATE PARTNERSHIP AS A TOOL FOR FINANCIAL SUPPORT OF THE ENERGY SECTOR IN UKRAINE: ANALYSIS, MECHANISM, FINANCIAL REPORTING

Based on the analysis of the dynamics of implementation of public-private partnership (PPP) projects in Ukraine, key problems have been identified and its priorities in financial support for the recovery of the native energy sector have been determined. It is appointed that PPP concession agreements are the main mechanisms for attracting investment in the global electric power industry. The expediency of using the concession model on BOT terms for the implementation of large projects in the energy sector is substantiated, which will contribute to the intensification of investment attraction and will allow to distribute risks between the state and business. Recommendations on the formation of an information platform for participants in the implementation of PPP projects on the basis of disclosure of information on the effectiveness of concession operations in accounting and financial statements have been developed. The tools for the formation of the financial mechanism of public-private partnership, where the priority is budget and venture financing, are substantiated. To make decisions on the implementation of PPP investment projects, an approach to assessing the financial support of project initiatives is recommended, the basis of which is the proposed criteria for compliance with financial security, the choice of funding sources, indicators of scenario analysis and efficiency. The proposed methodical approach to assessing the effectiveness of PPP allows us to assess the synergistic effect, which reflects the totality of economic, social and environmental effects. The formulated recommendations for improving the relationship between the state and business will contribute to the intensification of the attraction of private investment resources on the basis of PPPs for the restoration of the energy sector in Ukraine.

Identifying Critical Success Factors of Public Private Partnership Projects in Türkiye

Public private partnerships (PPPs) have become increasingly common as a result of states' shifting roles in infrastructure services from service providers and operators to policymakers and regulators. PPPs have been established as a prominent technique of public service procurement in both developed and developing countries. PPPs give the parties the opportunity to split the costs and risks of providing a public service or building a public infrastructure. Successful project management is crucial, especially in light of PPP projects' size and complexity. This study investigates the critical success factors (CSFs) of PPP investments in developing countries. In this regard, 23 CSFs were selected based on a thorough literature review, and a questionnaire survey was run to examine the impact of those factors on PPP performance. The information is gathered from 82 different companies in Türkiye that represent both the public and private sectors. The statistical analysis results show that favorable legal framework, detailed and clear project identification, and extensive cost-benefit assessment are the most significant drivers of success. Additionally, factor analysis is used on the data to investigate and identify underlying correlations between the factors, as well as to categorize them into fewer, more focused, and more thorough factors. The results of factor analysis suggest five dimensions; namely project finance, project management, operational factors, procurement, and organizational factors. The study's findings are anticipated to benefit both the public sector in its focus on legal concerns to permit better operation and the contractors in its examination of their capacity to manage big projects more effectively.

EFFICIENCY OF PUBLIC-PRIVATE PARTNERSHIP IN INFRASTRUCTURE DEVELOPMENT: ANALYSIS AND PROSPECTS

In 2022, the magnitude of investments in Public-Private Partnerships (PPP) within the infrastructure sector demonstrated a gradual resurgence. Beyond the well-established practice of attracting significant PPP investments in developed nations, there has been a notable increase in the engagement of middle-income countries in the utilization of public-private collaborative mechanisms for the advancement of their infrastructure. Among the sectors, transportation, and communications have consistently maintained a prominent position in terms of both investment influx and the quantity of successfully executed infrastructure projects on a global scale. Quantitative performance indicators within the sphere of PPP projects, encompassing metrics such as the count, monetary volume, and the proportion of different agreement types, manifest encouraging trends in the execution of infrastructure PPP initiatives. Conversely, the qualitative outcomes of this investigation reveal a spectrum of issues that are intrinsically linked to CSFs. These CSFs represent the principal benchmarks that exert a direct influence on the efficiency of PPP projects concerning their established objectives, processes, and management framework. The research undertaken by the authors has successfully identified a range of disparities in the challenges faced during the implementation of PPP projects across diverse nations, notwithstanding the similarity in the underlying mechanisms of cooperation.

Spatial diffusion of public-private partnership (PPP) in China: A county-level analysis

This paper explores the spatial diffusion of Public-Private Partnership (PPP) in China, assessing the effects of regional boundaries, including political and functional boundaries, and transaction costs on this process. We conduct an empirical analysis using county-level panel data from 2014 to 2020 and employ a combination of geographic information system (GIS) and spatial autoregressive models to analyze the spatial factors influencing PPP diffusion in China. Our findings reveal three key points: First, local governments' PPP investment positively correlates with neighboring regions, indicating a contagious effect. Second, the contagious effect is more significant within the same urban agglomeration, demonstrating a boundary effect and illustrating the impact of spatial rescaling on spatial diffusion. Third, the contagious effect is more pronounced for PPP sectors with lower output measurement difficulty, suggesting transaction costs influence spatial diffusion. These findings offer valuable insights into barriers to spatial diffusion and strategies to promote the spatial diffusion of innovation.

Exploring the impacts of public-private partnership investments and collaborative solutions for tackling inadequate funding in French language education

Educational institutions are shifting from traditional government bonds to the dynamic landscape of Public-Private Partnerships and collaborative funding models. However, limited research efforts have been directed toward studying the effects of Public-Private Partnerships and collaborative funding solutions in education. The methodology of the paper involves a comprehensive literature analysis to examine the existing body of knowledge related to the implementation of Public-Private Partnerships (PPPs) in French language education. This study delineated the critical financial constraints faced by educational institutions, emphasizing the need for innovative approaches. Within the public-private partnership sphere, the study scrutinizes the effectiveness and viability of these collaborative arrangements. In tandem, the study covered perspectives on the multifaceted impacts of collaborative investments, recognizing the potential of these collaborations to ameliorate the financial gaps in French language education. The study proposed strategies for fostering effective Public-Private Partnerships, offered guidance for educational leaders and policymakers, and illuminated future considerations and emerging trends that may transform the funding landscape in French language education. The culmination of this study is a synthesis of key opinions and findings, shedding light on the implications for the future of French language education and the prospects of addressing inadequate funding. The study provided valuable perspectives and recommendations for stakeholders, policymakers, and educators grappling with the persistent challenge of funding within the sphere of French language education.

Public-private partnership in the agrarian sector: conceptual framework for development

The article deals with the conceptual framework for the development of public-private partnership (PPP) in the agricultural sector of Ukraine. The author substantiates the need to reorient the model of agricultural development to the principles of deeper interaction between the State and business, one of the key mechanisms for ensuring which is PPP, which is carried out on a contractual basis to achieve a common goal by combining resources to obtain certain benefits for each participant. The purpose of the study is to develop a conceptual framework for the development of PPPs in the agricultural sector of Ukraine. The study shows a low level of implementation of PPP projects (18 projects out of 193, or 9,3 %) and its rather slow development in our country's economy, mainly due to legislative obstacles. It is substantiated that in the current conditions the issue of partnership development is extremely relevant, since budgetary funds are not enough to implement large-scale projects in wartime. Therefore, involvement of private partners and the use of mechanisms for building long-term relationships with them is essential. The author emphasizes the need for real changes in the implementation of PPP investment projects in agriculture, clarification of the tools for ensuring its development and their adaptation to sectoral issues, which requires the development of a Concept for the Development of Public-Private Partnership in the Agricultural Sector of Ukraine. The study argues that it is necessary to develop a unified approach to the development of PPPs, to determine the priority areas of application of such partnerships and the specifics of its use in solving the problems of agricultural development. The main factors hindering the development of such cooperation are identified and the main objectives of the Concept for the Development of Public-Private Partnership in the Agricultural Sector of Ukraine are substantiated. It is proved that improvement of PPP procedures will help to expand the scope of its application, accessibility, speed and scale of projects, as well as adaptation of such an investment support mechanism to the conditions of wartime/peace time. The article summarizes the main ways of activating PPPs as a mechanism for attracting investment in the reconstruction and development of the agricultural sector of Ukraine's economy. The fulfillment of these tasks will contribute to the revitalization of the use of PPPs in solving the problems of agricultural production development, development of the institutional framework for its implementation in Ukraine, in particular, the adoption of strategic directions for this development in the short and long term. Key words: state, concept, private partner, public-private partnership, agricultural sector, PPP projects, investment resources, development.

Quantifying the Impacts of Public-Private Partnership Investments and Collaborative Solutions for Tackling Inadequate Funding in French Language Education

Quantifying the Impacts of Public-Private Partnership Investments and Collaborative Solutions for Tackling Inadequate Funding in French Language Education

Quantifying the Impacts of Public-Private Partnership Investments and Collaborative Solutions for Tackling Inadequate Funding in French Language Education

Quantifying the Impacts of Public-Private Partnership Investments and Collaborative Solutions for Tackling Inadequate Funding in French Language Education

Public-private partnerships investment in energy as new determinant of renewable energy: The role of political cooperation in China and India

The most urgent global concerns revolve around environmental degradation and climate change. The potential approach to address these challenges is the implementation of a transition towards renewable energy sources. The acquisition of capital plays a crucial role in facilitating the transition towards clean energy. The government sector has demonstrated a lack of adequate funds in numerous instances. Given the substantial financial requirements associated with renewable energy, it is imperative to establish partnerships with the private sector. Hence, this study examines the influence of public-private partnership investments on renewable energy, specifically focusing on the significance of political cooperation, R&D expenditures, and technological innovation in China and India from 1990 to 2021. We used panel ARDL and the Pairwise Granger causality tests for analysis. The findings revealed that public-private partnerships, R&D investments, and political cooperation enhance renewable energy whereas, technology impedes renewable energy. The results of the causality test confirm that there exists a bidirectional relationship between investments in research and development and renewable energy. Additionally, the analysis reveals a unidirectional relationship between technology and renewable energy. The study suggested policy implications for guiding investments in public-private partnerships within the energy sector to enhance renewable energy generation and safeguard environmental integrity.

Impact of innovation in hybrid electric vehicles-related technologies on carbon dioxide emissions in the 15 most innovative countries

This research is motivated by worldwide concern about global warming and its negative environmental effects. Given the significant contribution of the transportation sector to carbon dioxide emissions (CO2e), it is imperative to comprehend the potential of emerging technologies or strategies, including innovations in hybrid electric vehicle-related technologies (IHVRT), in mitigating CO2e. The top 15 countries renowned for their innovation are at the forefront of clean energy and sustainable practices, rendering them ideal for researching the impact of IHVRT on CO2e. This study examines the nexus between IHVRT and CO2e and other related sustainability indicators using the latest data (1990–2020) for the 15 countries with the most innovative global economies. The long- and short-term interactions between IHVRT, public-private partnership investment in energy (PPPIE), renewable energy consumption (RNEC), expansionary fiscal policy (EFP), GDPPC, contractionary fiscal policy (CFP), and CO2e were assessed through a cross-sectional autoregressive distributed lag (CS-ARDL) model. Data analysis supported the favorable long-term impact of IHVRT, RNEC, and PPPIE in reducing emissions in the sampled economies. EFP emerged as a contributing agent of CO2e, while CFP had an inverse relation with CO2e. The current estimations support policy initiatives aimed at prioritizing IHVRT, PPPIE, and RNEC while cautioning against the detrimental environmental repercussions of EFC.

From Loan-Financed to Privatised Infrastructure? Tracing China's Turn Towards Public–Private Partnerships in Africa

Waning debt sustainability has challenged the debt-financed, infrastructure-led global expansion of Chinese capital. This article traces the gradual shift in the financial governance of the Belt and Road Initiative towards public–private partnerships (PPPs). We first document China's domestic PPP experience and its failure to check the unsustainable indebtedness of sub-national governments. We then conceptualise China's “turn” towards PPPs in Africa as an attempt at “metagoverning” its current growth model. Analysing official Chinese sources, we discern dominant Chinese narratives that present PPPs as panaceas for African debt problems. However, Chinese risk perceptions and empirical examples, such as the Nairobi Expressway, the Tanzania–Zambia Railway, and the Congolese Kolwezi–Kasumbalesa toll road, reveal that China's experimentation with PPPs in Africa engenders new challenges, including popular contestation, controversies over financial terms and corruption. Furthermore, contrary to the official Chinese narrative, profit imperatives behind PPP investments and potential financial complications that were widespread in China's domestic PPP experience risk adding to the financial burdens of African governments and populations.

Factors influencing investment attraction in road infrastructure BOT projects: A comprehensive analysis in the southern key economic zone of Vietnam

Over the course of the last two decades, Vietnam has demonstrated a growing interest in public-private partnership (PPP) investments within the domain of road transport infrastructure. However, the overall success rate of these endeavors has remained constrained and, in fact, has displayed a propensity for decline. Understanding the primary determinants behind this phenomenon, particularly the internal factors within the management system, has been a perplexing and protracted process, hindering the development of viable solutions. This research employs a qualitative analysis approach, leveraging in-depth interviews conducted with 250 road traffic infrastructure PPP project managers and experts. The objective is to discern the factors that exert influence over the investment attractiveness of build-operate-transfer (BOT) projects in the vital Southern Key Economic Zone of Vietnam. Subsequently, utilizing the collated data, this study employs a quantitative methodology to measure the impact of these factors via a derived multivariate regression equation. The findings reveal the existence of five distinct groups of factors that affect the investment attractiveness of BOT projects in the Southern Key Economic Zone, classified by their respective levels of influence. These groups encompass factors relating to the role of the state, the legal framework, human resources engagement in PPP ventures, supportive financial instruments, and the allocation of risk. Notably, these outcomes align with previous research efforts, further substantiating the robustness and reliability of the findings presented within this study.