Credit Default of Local Public Sectors in Chinese Government‐Pay PPP Projects: Evidence from Ecological Construction

Yang, Jie; Song, Lingchuan; Xing, Zhongdan

doi:10.1155/2019/2138525

Cited by 4 publications

(5 citation statements)

References 153 publications

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“…The "focus effect" of news reports is expectant with the huge pressure of public opinion which urges local governments to pay attention to public demand and achieve the goal of decision-making democratization [41][42][43]. Previous studies have shown that news reports play an important role in the policy diffusion of examples such as a public bicycle program [42,44], local government performance evaluation [37], and government purchase of public services [43,45] and in other fields [44,46].…”

Section: Hypothesis 6 (H6)mentioning

confidence: 99%

“…The current study's results are consistent with the findings of many Chinese [29,34] and foreign studies. Local governments' willingness is the basis for the implementation of innovation policies, while the pressure of public service demand arising from population size is an important driver for local governments to adopt innovation [42,44].…”

Section: Model Analysismentioning

confidence: 99%

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Assessment of Critical Diffusion Factors of Public–Private Partnership and Social Policy: Evidence from Mainland Prefecture-Level Cities in China

Sarker

et al. 2022

Land

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Cooperation between government and social capital is an important starting point in the supply-side reform of public services. It is also an effective practice in public governance innovation. Based on policy diffusion theory and event history analysis (EHA), this study analyzes panel data from 282 mainland prefecture-level cities in China from 2004–2020 to explore public–private partnerships’ critical diffusion factors. The study reveals that motivation factors, resource/obstacle factors, and external factors affect government and social capital cooperation policies to different extents. The main driving forces for local governments to adopt these policies are population size, level of economic development, government financial resources, the learning mechanism, and the imitation mechanism. This study proposes the following arguments: firstly, that the ultimate goal of policy innovation is to solve social contradictions and meet public demand; secondly, that economic resources can help to adopt policy innovation and proper diffusion; thirdly, that the public–private partnership (PPP) model has been continuously developed by using experience from other projects or cities through a learning mechanism; and finally, that policy publicity and public opinion expressed via the mainstream media are not only an inducement for policy innovation and diffusion, but also a powerful guarantee. The experience of local governments in China can help to verify whether the “positive factors” that are traditionally considered to be conducive to the cooperation between the government and social capital are effective, and to reveal the internal logic of the innovation diffusion of public policies of local governments in China from a more multidimensional perspective.

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Section: Hypothesis 6 (H6)mentioning

confidence: 99%

Section: Model Analysismentioning

confidence: 99%

Assessment of Critical Diffusion Factors of Public–Private Partnership and Social Policy: Evidence from Mainland Prefecture-Level Cities in China

Sarker

et al. 2022

Land

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“…In Singapore, which is widely regarded as politically stable, unstable government behavior is seen as the fifth most critical risk factor in adopting PPP projects given a long concession period (Hwang et al, 2013). The credit default of local public sectors has become a formidable force to cause termination in several cases (Yang et al, 2019). And government credit risk has seriously restricted the progress of PPP projects and hindered the sustainable development of PPP model (Ryan, 2007).…”

Section: Literature Reviewmentioning

confidence: 99%

“…There are many different forms of the government default, such as renegotiation of the contract, bailout of the private operator or even termination of the contract (Vecchi et al, 2017). Compared with other credit default behaviors, government buyback and direct termination are the most common methods (Yang et al, 2019). Therefore, the government default behaviors can be explained by model that the government buys back the program at a price…”

Section: ( ) ( )mentioning

confidence: 99%

Influence of Government Credit Risk on PPP Projects in Operation Stage

Zhou

Liu

2021

International Journal of Strategic Property Management

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In PPP projects, insufficient risk management may lead to the breakdown of partnerships and even project failures. Among them, the government credit risk is regarded as unbearable risk and a key risk affecting PPP projects because of its high frequency and impact. Therefore, based on the contractual relationship between both sides, a principal-agent model for the optimal choice of investors and the government under the government default probability is constructed. This paper explored the quantity relationship of the government credit risk and the project utility through analysing the effect of government default probability perceived by both parties on the investor’s optimal effort level and government allocation ratio. The results demonstrate that the government credit risk will decrease the effort level of investors and have a negative impact on the utility of the project. Furthermore, the government’s modification of the contract allocation ratio based on its own credit rating can offset the negative impact of its credit risk on the effectiveness of the project. But this regulatory effect is limited. The findings effectively provide some insights and theoretical basis for solving the negative effects of government credit risk.

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“…From the factor analysis, it can be seen that the stakeholders of water PPP projects concur that the construction quality of a project is the critical factor affecting sustainability, which indicates that water PPP projects themselves universally have some quality problems. is is mainly attributed to the complex structure and relationships, high technical content, and luck of definite user fee PPP project, leading to opportunistic behaviors of governments or private sector [92]. In order to improve the construction quality, several measures should be taken in every phase of project lifecycle, so as to effectively improve project performance and achieve sustainable development goals.…”

Section: 22mentioning

confidence: 99%

Critical Factors to Achieve Sustainability of Public-Private Partnership Projects in the Water Sector: A Stakeholder-Oriented Network Perspective

et al. 2020

Complexity

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A key challenge in the management of the public-private partnership project is to understand the critical factors for sustainability performance as well as their complex interaction. Majority of existing studies focus on identifying general factors without consideration of specific context of individual sector. To bridge the gap, unique characteristics of water PPP projects are taken into consideration in this study where the relationship among critical factors to achieve sustainable performance is analyzed from a network perspective. Stakeholder-associated factors and their interrelations were identified via extensive literature review and structured interview, and the social network analysis (SNA) method was employed to recognize the critical factors and their interactions in sustainability achievement of water PPP projects. As a result, seven stakeholder groups and 18 critical factor nodes were identified and further classified into four challenges when achieving sustainability. These challenges are (1) promoting ecological awareness and responsible citizen behaviour; (2) project construction quality; (3) ecological designs and technology innovations; and (4) project management capacity. These findings provide the stakeholders of water PPP projects with useful references for mitigating the risks and facilitating efforts to achieve better sustainability performance.

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Credit Default of Local Public Sectors in Chinese Government‐Pay PPP Projects: Evidence from Ecological Construction

Cited by 4 publications

References 153 publications

Assessment of Critical Diffusion Factors of Public–Private Partnership and Social Policy: Evidence from Mainland Prefecture-Level Cities in China

Assessment of Critical Diffusion Factors of Public–Private Partnership and Social Policy: Evidence from Mainland Prefecture-Level Cities in China

Influence of Government Credit Risk on PPP Projects in Operation Stage

Critical Factors to Achieve Sustainability of Public-Private Partnership Projects in the Water Sector: A Stakeholder-Oriented Network Perspective

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