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Do public-private partnerships benefit private sector? Evidence from an emerging market

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  • Chauhan, Yogesh
  • Marisetty, Vijaya B.

Abstract

We extend the literature on Public-Private Partnerships (PPPs) to understand the benefits of these incentive-compatible contracting arrangements to the private sector firms. We argue that the unique structure of PPPs helps in mitigating information asymmetry problem that drives underinvestment in the private sector of emerging markets and thereby enhances their investment efficiency. We test this hypothesis on PPPs that occurred in India over the last one decade.

Suggested Citation

  • Chauhan, Yogesh & Marisetty, Vijaya B., 2019. "Do public-private partnerships benefit private sector? Evidence from an emerging market," Research in International Business and Finance, Elsevier, vol. 47(C), pages 563-579.
    • Handle: RePEc:eee:riibaf:v:47:y:2019:i:c:p:563-579
    DOI: 10.1016/j.ribaf.2018.10.002
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    Cited by:

    1. 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).
    2. 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.
    3. Arthur Dassan & Joelson Oliveira Sampaio & Vinicius Augusto Brunassi Silva & Rodrigo De-Losso, 2021. "Private Means Better? A Water and Sanitation Quasi-experimental Design," Working Papers, Department of Economics 2021_22, University of São Paulo (FEA-USP).

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    More about this item

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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