Determinants of Public-Private Partnerships in Infrastructure

By Etienne B Yehoue, Mona Hammami, Jean-François Ruhashyankiko

April 1, 2006

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Etienne B Yehoue, Mona Hammami, and Jean-François Ruhashyankiko. Determinants of Public-Private Partnerships in Infrastructure, (USA: International Monetary Fund, 2006) accessed November 8, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper presents an empirical analysis of the cross-country and cross-industry determinants of public-private partnership (PPP) arrangements. We find that PPPs tend to be more common in countries where governments suffer from heavy debt burdens and where aggregate demand and market size are large. Our findings also suggest that macroeconomic stability is essential for PPPs. We provide evidence on the importance of institutional quality, where less corruption and effective rule of law are associated with more PPP projects. PPPs are also more prevalent in countries with previous PPP experiences. At the industry level, we find that PPP determinants vary across industries depending on the nature of public infrastructure, capital intensity, and technology required. We also find that private participation in PPP projects depends on the expected marketability, the technology required, and the degree of "impurity" of the goods or services.

Subject: Exports, Infrastructure, Public investment and public-private partnerships (PPP), Purchasing power, Purchasing power parity

Keywords: Infrastructure project, PPP arrangement, PPP experience, PPP project, PPPS help, WP

Publication Details

Pages:

39
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2006/099
Stock No:

WPIEA2006099
ISBN:

9781451863598
ISSN:

1018-5941

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