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Quality of institutions and private participation in transport infrastructure investment: Evidence from developing countries

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  • Percoco, Marco

Abstract

In recent decades, owing to a series of public debt crises and constraints on government expenditure, infrastructure investment has dropped significantly in both developed and developing countries. To counterbalance this trend, Public–Private Partnerships (PPPs) schemes have been increasingly adopted. In this paper, we explore the determinants of the degree of private participation in transport infrastructure projects in a large sample of developing countries. By using a large sample of transport projects included in the World Bank Private Participation in Infrastructure Projects database, we document that greater participation by private parties in PPP contracts is associated with better institutions in terms of lower corruption, civil freedom, and a better regulatory framework.

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  • Percoco, Marco, 2014. "Quality of institutions and private participation in transport infrastructure investment: Evidence from developing countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 70(C), pages 50-58.
    • Handle: RePEc:eee:transa:v:70:y:2014:i:c:p:50-58
    DOI: 10.1016/j.tra.2014.10.004
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    2. Fleta-Asín, Jorge & Muñoz, Fernando, 2023. "When bigger is better: Investment volume drivers in infrastructure public-private partnership projects," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
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    6. João M. Pinto & Mário Coutinho dos Santos & Pedro Verga Matos, 2021. "Contracting Out Public Transit Services: An Incentive Performance-Based Approach," Working Papers de Economia (Economics Working Papers) 02, Católica Porto Business School, Universidade Católica Portuguesa.
    7. Cepparulo, Alessandra & Eusepi, Giuseppe & Giuriato, Luisa, 2020. "Public finances and Public Private Partnerships in the European Union," MPRA Paper 103918, University Library of Munich, Germany.
    8. Peiwen Guo & Jun Fang & Ke Zhu, 2023. "The Spatial Spillover Effect and Function Routes of Transport Infrastructure Investment on Economic Growth: Evidence from Panel Data of OECD Members and Partners," Mathematics, MDPI, vol. 11(5), pages 1-26, February.
    9. Zhang, Zumeng & Ding, Liping & Wang, Chaofan & Dai, Qiyao & Shi, Yin & Zhao, Yujia & Zhu, Yuxuan, 2022. "Do operation and maintenance contracts help photovoltaic poverty alleviation power stations perform better?," Energy, Elsevier, vol. 259(C).
    10. Moschouli, Eleni & Soecipto, Raden Murwantara & Vanelslander, Thierry, 2019. "Cost performance of transport infrastructure projects before and after the global financial crisis (GFC): Are differences observed in the conditions of project performance?," Research in Transportation Economics, Elsevier, vol. 75(C), pages 21-35.
    11. Chang Liu, 2021. "Infrastructure Public–Private Partnership (PPP) Investment and Government Fiscal Expenditure on Science and Technology from the Perspective of Sustainability," Sustainability, MDPI, vol. 13(11), pages 1-18, May.
    12. 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).
    13. Abeysekara, Baudhi & Perera, Piyaruwan & Chhipi Shrestha, Gyan Kumar & Gunaruwan, Lalithasiri & Kumarage, Amal & Sadiq, Rehan & Hewage, Kasun, 2021. "Improving the capital deployment efficiency: An infrastructure investment planning process in transportation project," Research in Transportation Economics, Elsevier, vol. 88(C).
    14. Jorge Fleta‐Asín & Fernando Muñoz, 2021. "Renewable energy public–private partnerships in developing countries: Determinants of private investment," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(4), pages 653-670, July.
    15. Yanfeng Liu & Xue Li & Xiaonan Zhu & Min-Kyu Lee & Po-Lin Lai, 2023. "The theoretical systems of OFDI location determinants in global north and global south economies," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-13, December.
    16. Idrissa Yaya Diandy & Alioune Badara Seck, 2021. "Infrastructures physiques et croissance économique en Afrique de l'Ouest: Le rôle des institutions," African Development Review, African Development Bank, vol. 33(1), pages 154-165, March.
    17. Herrera Dappe,Matias & Melecky,Martin & Turkgulu,Burak, 2022. "Fiscal Risks from Early Termination of Public-Private Partnerships in Infrastructure," Policy Research Working Paper Series 9972, The World Bank.
    18. Antonio Estache, 2016. "Institutions for Infrastructure in Developing Countries: What We Know and the Lot We still Need to Know," Working Papers ECARES ECARES 2016-27, ULB -- Universite Libre de Bruxelles.
    19. Ligia Alba Melo-Becerra & María Teresa Ramírez-Giraldo, 2023. "Transport infrastructure and technical efficiency in a panel of countries: accounting for endogeneity in a stochastic frontier model," SN Business & Economics, Springer, vol. 3(1), pages 1-18, January.
    20. Huanming Wang & Xiaoyun Sun & Yu Shi, 2024. "Commercial investment in public–private partnerships: the impact of government characteristics," Local Government Studies, Taylor & Francis Journals, vol. 50(1), pages 230-260, January.
    21. Yunqiang Xue & Hongzhi Guan & Jonathan Corey & Heng Wei & Hai Yan, 2017. "Quantifying a Financially Sustainable Strategy of Public Transport: Private Capital Investment Considering Passenger Value," Sustainability, MDPI, vol. 9(2), pages 1-20, February.
    22. Halaszovich, Tilo F. & Kinra, Aseem, 2020. "The impact of distance, national transportation systems and logistics performance on FDI and international trade patterns: Results from Asian global value chains," Transport Policy, Elsevier, vol. 98(C), pages 35-47.
    23. Goran Amović & Rado Maksimović & Sonja Bunčić, 2020. "Critical Success Factors for Sustainable Public-Private Partnership (PPP) in Transition Conditions: An Empirical Study in Bosnia and Herzegovina," Sustainability, MDPI, vol. 12(17), pages 1-29, September.

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