The Degree of Private Participation in PPPs: Evidence from Developing and Emerging Economies

Basílio, Maria

doi:10.1108/978-1-78714-493-420171003

Cited by 16 publications

(12 citation statements)

References 11 publications

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“…PPP experience guides the public sector in improving its performance in future PPP projects (Hammami et al, 2006). Further, the government's PPP-specific reputation in successfully handling past PPP projects can motivate the private sector to invest in the country (Hammami et al, 2006;Basilio, 2011;Hyun et al, 2019;Kaur and Malik, 2020). Thus, H1 is: H1.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Furthermore, Pessoa (2006) underlined the relevance of macroeconomic conditions and a well-developed regulatory framework for attracting PPP investments. Banerjee et al (2006), Reside (2009);and Basilio (2011), in their analysis conducted over the period 1990-2017, concluded that institutional quality and political stability are key in attracting PPP investments. Notably, most of these studies have focussed on developed countries or pertain to the global level.…”

Section: Literature Reviewmentioning

confidence: 99%

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Determinants of public–private partnerships: an empirical analysis of Asia

Malik

Kaur

2022

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Purpose Despite being a global public–private partnerships (PPPs) leader, the Asian region is characterised by a wide PPP-divide, wherein select countries attract majority of PPP projects, while other countries fail to attract the requisite PPP investments. Against this background, the purpose of this study is to investigate the determinants of PPP projects in Asia. Design/methodology/approach Using quantitative methods on secondary data, this study analyses the macroeconomic determinants of value and number of PPPs in Asia for the period 2010–2019. The methodology relies on panel fixed effects, random effects, two-step system generalised method of moments and negative binomial regression. Findings Results underline the importance of the country’s experience with PPPs, physical infrastructure, financial sector development, market conditions, institutional quality and political stability in attracting PPP projects. Practical implications Identification of the determinants of PPPs will assist private investors in making informed decisions related to the selection of countries for PPP investments, thereby increasing the likelihood of a project’s success. Social implications The results are expected to enable countries to formulate policies aimed at attracting higher PPP investments, thereby propelling economic development and improvement in the quality of life. Originality/value To the best of the authors’ knowledge, this is the first such study that comprehensively analyses the determinants of both value of PPP investments and number of PPP projects for Asian countries.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Determinants of public–private partnerships: an empirical analysis of Asia

Malik

Kaur

2022

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“…Rodrik [8] revealed little evidence that multilateral lending has acted as a catalyst for private capital flows, although it argued a rationale for multilateral lending in terms of information provision and conditionality. Basilio [9] showed that multilateral support even reduces the private participation in infrastructure projects, thereby implying its substitution effect, through the empirical analysis of the determinants of the projects. On the other hand, Broccolini et al [4] identified positive and significant mobilization effects of MDBs on private capital in terms of the size of bank inflows, the number of lenders, and the average maturity by using loan-level data on syndicated lending to a large sample of developing countries.…”

Section: Literature Review and Contributionsmentioning

confidence: 99%

Financial Additionality of Multilateral Development Banks in Private Participation in Infrastructure Projects

Taguchi

Yasumura

2021

Sustainability

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This paper aims to provide empirical evidence for demonstrating financial additionality of multilateral development banks (MDBs) in private participation in infrastructure (PPI) projects in terms of financing beyond what is available in the markets. To verify MDB financial additionality, this study examines whether the PPI projects with multilateral support have significantly larger investment commitments than the total average projects by using the PPI database of the World Bank for 1996–2020. The empirical analysis identifies MDB financial additionality, in that the larger investment commitments of multilateral-supported projects beyond the average are confirmed in any income levels and regions in host countries and any sectors and types in the projects. In particular, MDB financial additionality is valid even in low-income countries where private finance is still too premature to be available. In the host countries where their government effectiveness is in the poorest edge, however, MDB financial additionality loses its significance, thereby requiring the governance enhancement and capacity building in the host countries and innovative blended finance instruments for its additionality to work.

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“…First, the index in the present study takes into account the fiscal space of the state, which is not considered in any other index. Fiscal constraints are an important determinant of higher value and number of PPP projects (Hammami et al, 2006;Sharma, 2012;Basílio, 2017;Rosell and Saz-Carranza, 2019;Kaur and Malik, 2020). Engaging in PPPs during times of fiscal constraints enables the government to meet rising infrastructure demand, whereas at the same time freeing up existing government funds for other purposes.…”

Section: Sub-national Analysis Of Indiamentioning

confidence: 99%

Multi-dimensional public–private partnership readiness index: a sub-national analysis of India

Malik

Kaur

2020

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Purpose Despite being a global public–private partnerships (PPPs) leader, India faces a vast PPP divide at a sub-national level, wherein a few states receive the majority of PPP projects, whereas other states face severe issues in attracting PPP investments. This necessitates the identification of factors that make some states attractive to PPP investors. The purpose of this study is to construct a “PPP readiness index” at the Indian state-level, which aims to assess the readiness of states for the diffusion of PPPs. Design/methodology/approach Using a quantitative method on secondary data, the study scores 17 Indian states on dimensions such as experience with PPPs, physical infrastructure, financial sector development, market conditions, institutional quality and political stability and fiscal constraints for each of the years during 2009–2018. Principal component analysis is used for assigning weights to the dimensions, thereby arriving at the composite index. Findings Results highlight that Tamil Nadu and Maharashtra offer the most favorable environment for PPPs to flourish. In contrast, Jharkhand and Bihar are laggards because they score the least and have limited PPP experience. Practical implications The index will assist the private sector in conducting a comparative analysis between state-specific PPP arrangements, thereby enabling them to make informed decisions prior to forging PPP arrangements. Further, the index will help the state governments in improving their PPP readiness by following the policies of the leading states. Social implications Improvement in PPP readiness of the states will enable higher PPP investments in infrastructure, thereby reducing infrastructure deficits. This, in turn, will lead to economic growth, development and an improvement in the quality of life. Originality/value To the best of the authors’ knowledge, this is the first study that comprehensively analyzes the PPP readiness at a sub-national level in India.

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The Degree of Private Participation in PPPs: Evidence from Developing and Emerging Economies

Cited by 16 publications

References 11 publications

Determinants of public–private partnerships: an empirical analysis of Asia

Determinants of public–private partnerships: an empirical analysis of Asia

Financial Additionality of Multilateral Development Banks in Private Participation in Infrastructure Projects

Multi-dimensional public–private partnership readiness index: a sub-national analysis of India

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