The environment of Public-Private Partnerships : the economic determinants of PPP's

Abstract

The purpose of this paper is to analyse which are the fiscal, political, legal and economic environment determinants of aggregated investment in € in PPPs and number of PPP’s created in 25 EU member-­‐states from 1995 to 2011. In order to assess which variables had a bigger impact, this article presents 3 OLS regressions models. There were several conclusions of which the most important were related to the fiscal variables. The raise of a country Primary Balance of a country spurs the creation of PPP’s. Additionally, the Debt in percentage to GDP of a given country also decreases with this occurrence. This is explained by the accounting gap that PPP’s allows, since the total costs of a given project are divided during the project lifetime and it scan take up to 30 years

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