Title: Estimating the determinants of public private partnerships in infrastructure: the case of India

Authors: Varun Chotia; N.V. Muralidhar Rao

Addresses: LM Thapar School of Management, Derabassi Campus, Derabassi-140507, Thapar Institute of Engineering and Technology (Deemed-to-be-University), Mohali, Punjab, India ' Department of Economics and Finance, 6165-N, New Academic Block, Birla Institute of Technology and Science, Pilani, Rajasthan, India

Abstract: Public private partnership (PPP) mode of financing is quickly becoming the favoured way to invest and fund infrastructure in India. This paper focuses exclusively on the PPP mode of infrastructure financing by examining and estimating the significant determinants of attracting any PPP in India. The empirical findings indicate that for India a higher cash deficit with huge government debt tends to attract more number of PPP projects. The study also suggests that political factors play a crucial role for the private sector in terms of making decisions regarding involvement of the PPP mode for financing infrastructure. Ultimately, there is evidence in favour of all the channels except the macroeconomic factors. While examining the investment aspect for PPPs, it was concluded that soft governmental constraints, market conditions and effectiveness of government proved to be decisive.

Keywords: public private partnership; PPP; government factors; political factors; market factors; institutional quality factors; India.

DOI: 10.1504/IJCIS.2018.094411

International Journal of Critical Infrastructures, 2018 Vol.14 No.3, pp.248 - 267

Received: 07 Oct 2017
Accepted: 24 Apr 2018
Published online: 31 Aug 2018 *

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