Explaining Public-Private Partnership Projects through Political Factors: An Assessment of Developing Countries

Abstract

This paper analyses the effect of political factors on the use of PPPs in developing countries. According to a sample of 80 low- and middle-income countries over the period 1995-2017, our findings suggest that PPP projects are affected by political ideology, the strength of the government and electoral cycles. Concretely, they tend to be used by left-wing governments to a greater extent than governments with other ideologies. PPPs also tend to be more frequently used by fragmented governments and when there is greater political competition. There is also some evidence (although slight) on the relevance of the proximity of elections in explaining PPPs in developing countries.