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Explaining the adoption rate of public-private partnerships in Chinese provinces: a transaction cost perspective

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  • Jie Tan
  • Jerry Zhirong Zhao

Abstract

Public-private partnerships (PPP) enjoyed its resurgence in China recently. However, while the government has initiated more than 12,000 projects since 2012, the number of them that have reached deals were small. This study aims to examine the determinants of PPP adoption in China between 2012 and 2016. Based on the transaction cost theory, we develop a four-pillar framework that includes factors related to the government, the market, the operating environment, and project-level characteristics. Applying the framework to empirical models at the provincial level, we find that the one-year adoption rate is affected especially by factors about the government.

Suggested Citation

  • Jie Tan & Jerry Zhirong Zhao, 2021. "Explaining the adoption rate of public-private partnerships in Chinese provinces: a transaction cost perspective," Public Management Review, Taylor & Francis Journals, vol. 23(4), pages 590-609, April.
    • Handle: RePEc:taf:rpxmxx:v:23:y:2021:i:4:p:590-609
    DOI: 10.1080/14719037.2019.1699947
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    Cited by:

    1. Yihang Zhao & Jing Xiong & De Hu, 2023. "Reputation, Network, and Performance: Exploring the Diffusion Mechanism of Local Governments’ Behavior during Inter-Governmental Environmental Cooperation," Land, MDPI, vol. 12(7), pages 1-17, July.
    2. Liping Fu & Huajun Sun & Yuan Meng & Jiaxin Li, 2022. "The Role of Public–Private Partnerships in Local Government Debt Is a Potential Threat to Sustainable Cities: A Case from China," Sustainability, MDPI, vol. 14(21), pages 1-20, October.

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