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Optimal Capital Structure of Public-Private Joint Ventures

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  • Pawel Gasiorowski
  • Marian Moszoro

Abstract

This paper presents a model to assess the efficiency of the capital structure in public-private partnerships (PPP). A main argument supporting the PPP approach for investment projects is the transfer of know-how from the private partner to the public entity. The paper shows how different knowledge transfer schemes determine an optimal shareholding structure of the PPP. Under the assumption of lower capital cost of the public partner and lower development outlays when the investment is carried out by a private investor, an optimal capital structure is achieved with both the public and the private parties as shareholders.

Suggested Citation

  • Pawel Gasiorowski & Marian Moszoro, 2008. "Optimal Capital Structure of Public-Private Joint Ventures," IMF Working Papers 2008/001, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2008/001
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    References listed on IDEAS

    as
    1. Wright, Mike, 1987. "Government divestments and the regulation of natural monopolies in the UK : The case of British gas," Energy Policy, Elsevier, vol. 15(3), pages 193-216, June.
    2. Feltenstein, Andrew & Ha, Jiming, 1999. "An analysis of the optimal provision of public infrastructure: a computational model using Mexican data," Journal of Development Economics, Elsevier, vol. 58(1), pages 219-230, February.
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    Cited by:

    1. Suk Hyun & Donghyun Park & Shu Tian, 2018. "Determinants of Public–Private Partnerships in Infrastructure in Asia: Implications for Capital Market Development," Working Papers id:12887, eSocialSciences.
    2. Hyun, Suk & Park, Donghyun & Tian, Shu, 2018. "Determinants of Public–Private Partnerships in Infrastructure in Asia: Implications for Capital Market Development," ADB Economics Working Paper Series 552, Asian Development Bank.
    3. Dhehibi, Boubaker & Telleria, Roberto & Aw-Hassan, Aden, 2013. "Impacts of Public, Private, and R&D Investments on Total Factor Productivity Growth in Tunisian Agriculture," 2013 Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 160584, African Association of Agricultural Economists (AAAE).
    4. Xiuqin Wang & Shufan Wang & Ying Gao, 2023. "Optimal equity structure of PPP projects when private-sector shareholders’ “investor-contractor” dual roles is considered," Construction Management and Economics, Taylor & Francis Journals, vol. 41(11-12), pages 910-925, December.
    5. Yin Germaschewski, 2016. "Getting help from abroad: The macroeconomics of foreign direct investment in infrastructure in low-income countries," Canadian Journal of Economics, Canadian Economics Association, vol. 49(4), pages 1502-1535, November.
    6. Roger Vickerman & Emil Evenhuis, 2010. "Transport Pricing and Public-Private Partnerships," Studies in Economics 1004, School of Economics, University of Kent.
    7. Ismail, Abdul Gahfar, 2015. "Public Private Partnerships: lesson from Sukuk," Working Papers 1435-4, The Islamic Research and Teaching Institute (IRTI).
    8. Evenhuis, Emil & Vickerman, Roger, 2010. "Transport pricing and Public-Private Partnerships in theory: Issues and Suggestions," Research in Transportation Economics, Elsevier, vol. 30(1), pages 6-14.
    9. repec:bla:annpce:v:89:y:2018:i:1:p:25-48 is not listed on IDEAS

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    Keywords

    WP; capital structure;

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