PPPs Contribution to Economic Growth and Infrastructure Development: The Role of Governance
摘要
This paper proposes a new approach to measuring the role of multi-sector PPP investments in GDP efficiency and infrastructure development. Using a fixed effects estimation method and a stochastic frontier approach, the effect of multi-sectoral PPP investments in shifting the production frontier and their role as determinants of inefficiency was analyzed. To do this, the production frontier with and without PPP was compared using a fixed-effects model. The results showed a positive contribution of PPPs to GDP. This contribution is also positive when PPPs are combined with KKZ governance indicators. Using a two-step approach, PPPs have also made it possible to reduce the inefficient distance when they are considered as determinants. Using the stochastic frontier approach and the CPIA criteria as determinants, we also noted a positive contribution of PPPs to infrastructure development as well as a reduction in inefficient distance. However, for most countries, these positive contributions do not compensate for the 3.5% inefficiency associated with PPPs.