Improving Public Investment in Kazakh PPPS from a Portfolio Perspective: A System Dynamics Approach

Gabriel Castelblanco (), Timur Narbaev (), Almas Mamyrbayev (), Andrey Samoilov () and Jose Guevara ()
Additional contact information
Gabriel Castelblanco: University of Florida
Timur Narbaev: Kazakh-British Technical University
Almas Mamyrbayev: Kazakh-British Technical University
Andrey Samoilov: Kazakh-British Technical University
Jose Guevara: Universidad de los Andes

A chapter in Eurasian Business and Economics Perspectives, 2024, pp 253-265 from Springer

Abstract: Abstract Governments worldwide have implemented Public-Private Partnership (PPP) programs for developing public infrastructure easing fiscal pressure in the short term through leveraging capital investments from the private sector. Nevertheless, the length and complexity of these megaprojects jeopardize the long-term sustainability of this program due to economic and social challenges. In this study, we analyze the long-term social and financial implications of the Kazakh PPP program through a portfolio lens and using a System Dynamics modeling. To offer valuable insights for PPP decision-makers, the proposed model exposes the relationships between financial constraints, societal concerns, and PPP development. A causal-loop diagram unravels the underlying feedback relationships for proposing suitable policies to enhance the outcomes of the PPP programs. The model simulation identified two major drawbacks: the lack of accountability and transparency and the increasing long-term public subsidies required due to the profitability of special-purpose vehicles. Conducted policy analysis evaluates potential short- and long-term government strategies and provides the stakeholders with strategies for improving PPP program outcomes and addressing weaknesses. Ultimately, this research not only delineates the PPP landscape in an emerging economy but also yields actionable insights for policymakers, investors, and other infrastructure stakeholders in developing markets.

Keywords: Public-private partnership; System dynamics; Kazakhstan; PPP program; Stakeholders; Influencing factors (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eurchp:978-3-031-69237-6_14

Ordering information: This item can be ordered from
http://www.springer.com/9783031692376

DOI: 10.1007/978-3-031-69237-6_14

Access Statistics for this chapter

More chapters in Eurasian Studies in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().