How public-private partnership projects impact infrastructure industry for economic growth

Abouzar Zangoueinezhad and Adel Azar

International Journal of Social Economics, 2014, vol. 41, issue 10, 994-1010

Abstract: Purpose - – Public-private partnership (PPP) is mutually beneficial relationships that are formed between the public and private sectors. The private-sector partner typically makes a substantial equity investment, and in return the public sector gains access to new or improved services. When properly vetted and structured, PPP allocate risk to the party best suited to handle it. The purpose of this paper is to examine the relationship between the scale and nature of the PPP's contribution as a driver of the economic growth and gross domestic product (GDP). Design/methodology/approach - – Using statistics causality modeling and relevant statistical techniques, the dynamic interactions and interdependencies over PPP and economic growth were addressed and quantified. Findings - – Although PPP can free up government resources for other public priorities, three key factors enable PPP to stimulate a country's economic growth: the number of PPP projects under way, the value of PPP projects, and the ideal type of PPP contracts in use. Originality/value - – The number, value, and type of PPP, combined with supportive policies, power economic growth. Governments with well-established and enforced policies against corruption, combined with low business transaction costs, a transparent legislative system, and exchange rate and monetary stability are far more attractive to the private sector.

Keywords: Management; Social economy; Developing countries (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijsepp:v:41:y:2014:i:10:p:994-1010

DOI: 10.1108/IJSE-04-2013-0083

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