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Determinants of PPP in infrastructure investments in MENA countries: a focus on energy

Author

Listed:
  • Giuseppe Liddo

    (Management and Business Law at Bari University)

  • Alessandro Rubino

    (University of Bari Aldo Moro)

  • Ernesto Somma

    (Management and Business Law at Bari University)

Abstract

Good infrastructures are key to guarantee sustained economic growth and inclusive development. However, fiscal and budget constraints are likely to restraint public investment in infrastructure. For these reasons, public–private partnerships (PPPs) are increasingly playing a crucial role in infrastructures deployment at global level. However, the factors affecting PPP attraction are still understudied. In particular, it is notable that some regions are persistently underperforming in terms of PPP investments. This study aims to identify the impact that non-financial factors, such as governance and regulatory quality, play in PPP investments in the MENA region. We analysed the impact of regulatory quality in infrastructure investment and we show that regulatory quality is the most relevant governance indicator to explain the level of PPP investments. Its impact is particularly strong in the energy sector, and in politically instable environments such as the MENA countries.

Suggested Citation

  • Giuseppe Liddo & Alessandro Rubino & Ernesto Somma, 2019. "Determinants of PPP in infrastructure investments in MENA countries: a focus on energy," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 46(4), pages 523-580, December.
    • Handle: RePEc:spr:epolin:v:46:y:2019:i:4:d:10.1007_s40812-019-00129-7
    DOI: 10.1007/s40812-019-00129-7
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    Cited by:

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    2. Bakari, Sayef, 2023. "The nexus between domestic investment and economic growth in MENA countries; Does unemployment matter?," MPRA Paper 118349, University Library of Munich, Germany.
    3. Yuegang Song & Umer Shahzad & Sudharshan Reddy Paramati, 2023. "Impact of energy infrastructure investments on renewable electricity generation in major Asian developing economies," Australian Economic Papers, Wiley Blackwell, vol. 62(1), pages 1-23, March.

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    More about this item

    Keywords

    Public–private partnership; Energy; Institutional quality; Regulation;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures

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