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How does risk transference to private partner impact on public-private partnerships’ success? Empirical evidence from developing economies

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  • Fleta-Asín, Jorge
  • Muñoz, Fernando

Abstract

This work analyses how risk transference to the private partner affects the success of public-private partnerships (PPP). For this purpose, a broad sample from the World Bank database of 6,022 PPP infrastructure projects in 59 developing countries in the period 1997 to 2016 is analysed. Using multilevel logistic models our results show that PPPs' success is more likely when the private partner takes more risk and the economic and institutional environments are better. Another interesting finding is that an excessive transference of risks to the private party when certain institutional features show good records could prejudice PPPs’ performance.

Suggested Citation

  • Fleta-Asín, Jorge & Muñoz, Fernando, 2020. "How does risk transference to private partner impact on public-private partnerships’ success? Empirical evidence from developing economies," Socio-Economic Planning Sciences, Elsevier, vol. 72(C).
    • Handle: RePEc:eee:soceps:v:72:y:2020:i:c:s003801211930607x
    DOI: 10.1016/j.seps.2020.100869
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    More about this item

    Keywords

    Public-private partnerships; Risk transference; Success; Economic conditions; Institutional environment; Developing economies;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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