Determinants of public–private partnerships: a state-level empirical analysis of India. Issue 4 (12th June 2020)

• Record Type: Journal Article
• Authors: Kaur, Simrit; Malik, Sakshi
• Is Part Of: Property management. Volume 38:Issue 4(2020)
• Page Start: 597
• Page End: 611
• Publication Date: 2020-06-12
• Subjects: Public–private partnerships (PPPs) -- Infrastructure deficits -- Generalized method of moments -- Institutional quality -- India; Real estate management -- Periodicals; Real property -- Great Britain -- Periodicals; 333.5068
• DOI: 10.1108/PM-10-2019-0063
• Languages: English
• ISSNs: 0263-7472

Abstract

Abstract : Purpose: In view of the significance of public–private partnerships (PPPs) as a tool for bridging infrastructure deficits, it becomes imperative to study its determinants. The objective of this paper is to empirically study the determinants of PPPs in India at a subnational level, in terms of both number and value of PPP projects. Design/methodology/approach: This study investigates the determinants of value and number of Indian PPPs at a subnational level for the period 2008–2017. The determinants are analyzed using two-step system generalized method of moments (GMM) and negative binomial regression. Select correlates examined are market size, fiscal compulsions, institutional quality, financial sector development and physical infrastructure. Findings: The results indicate that fiscal compulsions, financial sector development and physical infrastructure influence PPPs favorably, whereas low institutional quality impacts PPPs adversely. A pertinent finding of this study is that the past value of PPPs lowers the current year's PPP value. Practical implications: The findings are expected to assist subnational governments and policymakers in formulating policies that attract more PPP projects (in terms of both value and number). Originality/value: This is the first study that analyzes the determinants of infrastructure PPPs at a subnational level in India.