The impact of institutional conditions on willingness to take contractual risk in port public-private partnerships of developing countries
Xiao, Z.; Lam, J.S.L. (2020). The impact of institutional conditions on willingness to take contractual risk in port public-private partnerships of developing countries. Transportation Research Part A-Policy and Practice 133: 12-26. https://dx.doi.org/10.1016/j.tra.2019.12.023
In: Transportation Research Part A-Policy and Practice. PERGAMON-ELSEVIER SCIENCE LTD: Oxford. ISSN 0965-8564, more
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Public-private partnerships; Port; Institutional perspectives; Contractual risk; Developing countries |
| Authors | | Top |
- Xiao, Z.
- Lam, J.S.L., more
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| Abstract |
Public–private partnerships (PPPs) are gaining popularity in port development projects especially in developing countries. A key question emerges that why private companies are willing to take more risk in some port PPP projects but not in others. This paper empirically investigates willingness to take port PPP contractual risk from institutional perspectives. Specifically, the paper examines impacts of business friendliness, political effectiveness, and freedom from governmental intervention on private investors’ willingness to take port PPP contractual risk. The analysis covers a total of 398 port PPP projects in developing countries from 1995 to 2016 based on the World Bank Private Participation in Infrastructure database. Findings reveal that the effect of political effectiveness on willingness to take contractual risk mediates through two variables (1) business friendliness and (2) freedom from governmental intervention, where the former mediation contributes positively, and the latter has a negative impact. The research is the first attempt in the literature that examines differences in the willingness to take PPP contractual risk among private investors. Policy and managerial implications for various stakeholders are discussed. |
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