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Is there a relationship between Corruption and Public-Private Partnerships?

Jeppsson, William LU (2021) NEKH02 20211
Department of Economics
Abstract
Despite the importance of infrastructure, a big funding gap can be seen in infrastructure procurement. Public-Private Partnerships (PPPs) were once seen as a solution, but years later the results are underwhelming. As the industry can be susceptible to corruption, concerns have emerged about PPPs. To confront these concerns, this study aims to investigate if there is a link between corruption and the usage of PPPs. To do this, a panel dataset of 147 lower-income countries was compiled with data from the Private Participation in Infrastructure database, the Worldwide Governance Indicators and the World Development Indicators. A Fixed Effects Poisson Model was then applied to the panel dataset for an empirical analysis of the data. The... (More)
Despite the importance of infrastructure, a big funding gap can be seen in infrastructure procurement. Public-Private Partnerships (PPPs) were once seen as a solution, but years later the results are underwhelming. As the industry can be susceptible to corruption, concerns have emerged about PPPs. To confront these concerns, this study aims to investigate if there is a link between corruption and the usage of PPPs. To do this, a panel dataset of 147 lower-income countries was compiled with data from the Private Participation in Infrastructure database, the Worldwide Governance Indicators and the World Development Indicators. A Fixed Effects Poisson Model was then applied to the panel dataset for an empirical analysis of the data. The regressions showed that control of corruption has a positive effect on both the number of PPPs and Greenfield PPPs when there is multilateral support involved. This relationship was found to support the “sand the wheels” perspective, where corruption has a negative effect on the usage of PPPs. (Less)
Please use this url to cite or link to this publication:
author
Jeppsson, William LU
supervisor
organization
course
NEKH02 20211
year
type
M2 - Bachelor Degree
subject
keywords
Public-Private Partnerships, PPPs, Corruption, Infrastructure Procurement
language
English
id
9067180
date added to LUP
2022-02-03 08:23:24
date last changed
2022-02-03 08:23:24
@misc{9067180,
  abstract     = {{Despite the importance of infrastructure, a big funding gap can be seen in infrastructure procurement. Public-Private Partnerships (PPPs) were once seen as a solution, but years later the results are underwhelming. As the industry can be susceptible to corruption, concerns have emerged about PPPs. To confront these concerns, this study aims to investigate if there is a link between corruption and the usage of PPPs. To do this, a panel dataset of 147 lower-income countries was compiled with data from the Private Participation in Infrastructure database, the Worldwide Governance Indicators and the World Development Indicators. A Fixed Effects Poisson Model was then applied to the panel dataset for an empirical analysis of the data. The regressions showed that control of corruption has a positive effect on both the number of PPPs and Greenfield PPPs when there is multilateral support involved. This relationship was found to support the “sand the wheels” perspective, where corruption has a negative effect on the usage of PPPs.}},
  author       = {{Jeppsson, William}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Is there a relationship between Corruption and Public-Private Partnerships?}},
  year         = {{2021}},
}