Transportation Research A has just published my paper “Quality of institutions and private participation in transport infrastructure investment: Evidence from developing countries“. By using a large sample of public-private partnerships in developing countries, I found that corruption and uncertain regulation shift the risk from private investors to the public sector.
Marco Percoco Quality of institutions and private participation in transport infrastructure investment: Evidence from developing countries,Transportation Research Part A: Policy and Practice, 70(December 2014):50–58.
Abstract: In recent decades, owing to a series of public debt crises and constraints on government expenditure, infrastructure investment has dropped significantly in both developed and developing countries. To counterbalance this trend, Public–Private Partnerships (PPPs) schemes have been increasingly adopted. In this paper, we explore the determinants of the degree of private participation in transport infrastructure projects in a large sample of developing countries. By using a large sample of transport projects included in the World Bank Private Participation in Infrastructure Projects database, we document that greater participation by private parties in PPP contracts is associated with better institutions in terms of lower corruption, civil freedom, and a better regulatory framework.