Factors driving private investments in PPP infrastructure projects in emerging economies: an empirical evaluation

An agreement between the public and private sectors known as a public-private partnership (PPP) entails the private organisation providing infrastructure assets and services that the government would typically offer. The popularity of PPPs has gradually increased over recent years. The study empirically examines the developmental and governance factors that influence private sector attraction in PPPs in 114 emerging economies. The study utilises the World Bank's private participation in infrastructure (PPI) database for the period 2001-2020. PPP arrangements are primarily utilised to bridge the infrastructure gap in countries that cannot commit their internal financial resources to infrastructure development. The current study focuses primarily on emerging economies where the infrastructure gap is significant and the requirements for PPP infrastructure arrangements more acute than in other countries. The findings of the study imply that markets with large sizes and comparatively higher incomes attract more PPP initiatives. Macroeconomic stability, regulatory quality, and governance appear to be crucial factors influencing PPPs in infrastructure. The findings of our study do not support the idea that the political environment played a role in the process.