Determinants of Public-Private Partnerships in Infrastructure across EU-Candidate Countries: An Empirical Assessment
Determinants of Public-Private Partnerships in Infrastructure across EU-Candidate Countries: An Empirical Assessment

Summary/Abstract: This paper aims to analyse the factors determining the adoption of Public Private Partnerships in infrastructure in European Union candidate countries. Through empirical analysis conducted for the period 2005-2023, the paper examines the role of macroeconomic and institutional factors in promoting or preventing the use of PPPs in these countries. Using panel count data and a Poisson model with fixed effects and robust error for eight EU candidate countries, the results show that the macroeconomic factors are the main drivers of the use of PPPs in these countries. Also interesting is the fact that government efficiency has a negative effect on PPP adoption, suggesting that countries with weaker institutions are more likely to use PPPs to compensate for budgetary constraints or for their own political interests. The study emphasises the importance of macroeconomic stability and the improvement of institutional quality prerequisites for the sustainable development of PPPs in EU candidate countries.

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