Explaining the Formation of Public-Private Partnerships in a Cross-Country Context - A Tripod Framework with Ten Critical Factors
41 Pages Posted: 5 Oct 2010
Date Written: October 4, 2010
Public-private partnerships (PPPs) have become an important means in public services provision; research thereof has been increasing. This article develops a tripod framework to explain PPPs formation in a cross-country context, the tripods being the market, the operating environment, and the government, each with two or three factors supporting respective aspects of PPPs. We apply the framework in analyzing first-hand survey data from four transitional economies and three advanced economies. Using Exploratory Factor Analysis, we identify seven factors as critical in creating PPPs; they are: market potentials, institutional guarantee, government credibility, financial accessibility, government capacity, centralized management, and control of corruption. The efficacy of the proposed framework is justified by its explanatory power of the practical side of PPPs and largely confirmed with results from a sensitivity test with Weighted Logistic Regression.
Keywords: public-private partnerships, critical factors, exploratory factor analysis, transitional countries
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