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Fiscal and political determinants of local government involvement in public-private partnership (PPP)

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  • Agnieszka Kopańska
  • Roman Asinski

Abstract

In this article, we estimate the main determinants of local government’s engagement in public-private partnership (PPP) projects using logistic panel regression. We use data from 2478 municipalities and cities in Poland from 2009 to 2016. The results show that municipalities with higher levels of indebtedness have a higher probability of opening PPP tenders while local units that are more dependent on central grants or receive more European grants are less engaged in PPP. We also found that the mayors of municipalities and cities with stronger electoral competition engage in PPP with a higher probability. These results are important for discussions on the efficient use of PPP. They show that local government decisions made in conditions of fiscal constraint and political struggle can blur the PPP’s value-for-money aim.

Suggested Citation

  • Agnieszka Kopańska & Roman Asinski, 2019. "Fiscal and political determinants of local government involvement in public-private partnership (PPP)," Local Government Studies, Taylor & Francis Journals, vol. 45(6), pages 957-976, November.
    • Handle: RePEc:taf:flgsxx:v:45:y:2019:i:6:p:957-976
    DOI: 10.1080/03003930.2019.1635016
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    Cited by:

    1. Anna Białek‐Jaworska, 2022. "Revenue diversification and municipally owned companies’ role in shaping the debt of municipalities," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(4), pages 931-975, December.
    2. 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.
    3. Mark A. Moore & Aidan R. Vining, 2023. "PPP performance evaluation: the social welfare goal, principal–agent theory and political economy," Policy Sciences, Springer;Society of Policy Sciences, vol. 56(2), pages 267-299, June.

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