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An empirical investigation of logistics infrastructure projects in emerging economies

Author

Listed:
  • Francesco Parola

    (University of Genoa)

  • Jasmine Siu Lee Lam

    (Nanyang Technological University)

Abstract

Public–private partnerships (PPPs) are considered to be an important mechanism for developing logistics infrastructures especially in emerging economies. As acknowledged, logistics infrastructures often imply multistage projects which impose strong financial and technical commitments to private firms, in the planning and construction phases, as well as in regular operations. Despite logistics infrastructures’ practical interest, however, academic literature has not provided in-depth analysis of certain important dimensions in the area of PPPs. Grounding on the assumptions of the Resource Dependence Theory (RDT), this study investigates the impact of financial and technical complexity of logistics infrastructures on the implementation of dependence-reducing strategies in PPP arrangements. The paper performs a large empirical investigation using multivariate multiple regression analysis. The sample from the Private Participation in Infrastructure (PPI) dataset of the World Bank includes over 1300 projects involving private participations in logistics infrastructures of 85 developing countries, for a total investment of around 334 billion USD in the 1996–2013 period. The sample projects belong to major logistics and transport sectors such as ports, airports, roads, and railways. Information is confirmed and complemented by data derived from International Union of Railways, Airports Council International, Drewry Shipping Consultants, and International Association of Ports and Harbours. The results demonstrate the adoption of some dependence-reducing strategies in response to the financial and technical complexity of PPP projects, e.g., large number of private partners in the PPP project company, broad experience of the consortium members, and familiarity of investors with the host cultural area. Through the RTD theoretical lens, the paper advances knowledge on existing literature on PPP in logistics infrastructures and describes implications for both academics and practitioners.

Suggested Citation

  • Francesco Parola & Jasmine Siu Lee Lam, 2018. "An empirical investigation of logistics infrastructure projects in emerging economies," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 20(1), pages 48-71, March.
    • Handle: RePEc:pal:marecl:v:20:y:2018:i:1:d:10.1057_s41278-016-0045-5
    DOI: 10.1057/s41278-016-0045-5
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    1. Jeffrey Kouton & Wilfried Sanogo & Nandi Djomgoue, 2023. "Risk allocation in energy infrastructure PPPs projects in selected African countries: does institutional quality, PPPs experience and income level make a difference?," Economic Change and Restructuring, Springer, vol. 56(1), pages 537-580, February.
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    3. Behzad Behdani & Bart Wiegmans & Violeta Roso & Hercules Haralambides, 2020. "Port-hinterland transport and logistics: emerging trends and frontier research," Maritime Economics & Logistics, Palgrave Macmillan;International Association of Maritime Economists (IAME), vol. 22(1), pages 1-25, March.
    4. Xiao, Zengqi & Lam, Jasmine Siu Lee, 2020. "The impact of institutional conditions on willingness to take contractual risk in port public-private partnerships of developing countries," Transportation Research Part A: Policy and Practice, Elsevier, vol. 133(C), pages 12-26.

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