DETERMINANTS OF PUBLIC-PRIVATE PARTNERSHIP IMPLEMENTATION IN OIC COUNTRIES

Rahmatina Awaliah Kasri (), Muhammad Rizki Siddiq () and Farid Arif Wibowo ()
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Rahmatina Awaliah Kasri: Faculty of Economics and Business Universitas Indonesia, Indonesia
Muhammad Rizki Siddiq: Faculty of Economics and Business Universitas Indonesia, Indonesia
Farid Arif Wibowo: Directorate of Government Support and Infrastructure Financing Management, Directorate General of Budget Financing and Risk Management, Ministry of Finance of the Republic of Indonesia, Indonesia

Journal of Islamic Monetary Economics and Finance, 2022, vol. 8, issue 2, 275-304

Abstract: This study examines the Private-Public Partnership (PPP) implementation for financing public infrastructure and its determinants for the case of OIC countries during the period 2015–2019. Using the fixed-effects panel model and considering public resource constraints and market, macroeconomic, institutional and cultural variables as potential factors, it documents that the regulatory quality, political stability, Islamicity Index and inflation variables positively influence the implementation of PPP for financing public infrastructure in the OIC region. Meanwhile, aid is found to negatively affect the PPP implementation. These findings suggest that PPP implementation tends to be higher in countries with good institutions, stable macroeconomic conditions, low public resources, low levels of aid and strong adherence to Islamic values. The results are expected to provide insights for policymakers and private sectors involved in the implementation of PPP in OIC countries.

Keywords: Infrastructure financing; Public-private partnership (PPP); OIC countries; Islamic finance; Islamic economics (search for similar items in EconPapers)
JEL-codes: O11 O18 O53 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:idn:jimfjn:v:8:y:2022:i:2f:p:275-304

DOI: 10.21098/jimf.v8i2.1437

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