Effect of public–private partnership projects on inequality in developing countries

Abstract

This study examines the effect of public-private partnerships (PPPs) on income inequality, focusing on economic infrastructures. For that, we use a sample composed of data from 38 low- and middle-income countries over the period 2000-2018. The empirical findings suggest that inequality has not been reduced; by contrast, income inequality has increased in countries that have developed PPP projects to a greater extent. This study offers practical implications about the social cost that the PPP formula has in developing countries.