Exploring Risk Factors Affecting Sustainable Outcomes of Global Public–Private Partnership (PPP) Projects: A Stakeholder Perspective
As a model for delivering infrastructure initiatives, public–private partnerships (PPPs) have gained significant popularity in recent years. The globalization of PPP has exposed them to elevated risks emanating from the international real economy and financial market, which can ultimately result in...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-08-01
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| Series: | Buildings |
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| Online Access: | https://www.mdpi.com/2075-5309/13/9/2140 |
| _version_ | 1797581047272046592 |
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| author | Zilin Li Haotian Wang |
| author_facet | Zilin Li Haotian Wang |
| author_sort | Zilin Li |
| collection | DOAJ |
| description | As a model for delivering infrastructure initiatives, public–private partnerships (PPPs) have gained significant popularity in recent years. The globalization of PPP has exposed them to elevated risks emanating from the international real economy and financial market, which can ultimately result in project cancellations or distress. This study analyzes risk factors affecting the sustainable outcomes of global PPP projects from a stakeholder perspective. After identifying the interests of key stakeholders and examining how various risks influence stakeholders’ interests, a two-step binomial probit model is used to investigate domestic and international risk factors in PPP arrangements based on the World Bank PPI database. The empirical results indicate that inflation has a substantially positive effect on project failure, while factors such as PPP experience, central government involvement, exchange rate fluctuations, etc., significantly contribute to PPP success. In addition, the study demonstrates that trade openness and net foreign direct investment (FDI) inflow are crucial for the transmission of global risks. The study also provides policy implications and recommendations from a risk allocation–stakeholder relationship perspective to enhance the resilience of PPP initiatives based on these findings. |
| first_indexed | 2024-03-10T22:58:35Z |
| format | Article |
| id | doaj.art-a9ece41fe2fc4f0eb5c5f3de88bb3c03 |
| institution | Directory Open Access Journal |
| issn | 2075-5309 |
| language | English |
| last_indexed | 2024-03-10T22:58:35Z |
| publishDate | 2023-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Buildings |
| spelling | doaj.art-a9ece41fe2fc4f0eb5c5f3de88bb3c032023-11-19T09:49:58ZengMDPI AGBuildings2075-53092023-08-01139214010.3390/buildings13092140Exploring Risk Factors Affecting Sustainable Outcomes of Global Public–Private Partnership (PPP) Projects: A Stakeholder PerspectiveZilin Li0Haotian Wang1School of Public Administration and Policy, Renmin University of China, Beijing 100872, ChinaThe Bartlett Faculty of the Built Environment, University College London, London WC1E 6BT, UKAs a model for delivering infrastructure initiatives, public–private partnerships (PPPs) have gained significant popularity in recent years. The globalization of PPP has exposed them to elevated risks emanating from the international real economy and financial market, which can ultimately result in project cancellations or distress. This study analyzes risk factors affecting the sustainable outcomes of global PPP projects from a stakeholder perspective. After identifying the interests of key stakeholders and examining how various risks influence stakeholders’ interests, a two-step binomial probit model is used to investigate domestic and international risk factors in PPP arrangements based on the World Bank PPI database. The empirical results indicate that inflation has a substantially positive effect on project failure, while factors such as PPP experience, central government involvement, exchange rate fluctuations, etc., significantly contribute to PPP success. In addition, the study demonstrates that trade openness and net foreign direct investment (FDI) inflow are crucial for the transmission of global risks. The study also provides policy implications and recommendations from a risk allocation–stakeholder relationship perspective to enhance the resilience of PPP initiatives based on these findings.https://www.mdpi.com/2075-5309/13/9/2140public–private partnership (PPP)risk factorssustainable outcomesstakeholder relationship |
| spellingShingle | Zilin Li Haotian Wang Exploring Risk Factors Affecting Sustainable Outcomes of Global Public–Private Partnership (PPP) Projects: A Stakeholder Perspective Buildings public–private partnership (PPP) risk factors sustainable outcomes stakeholder relationship |
| title | Exploring Risk Factors Affecting Sustainable Outcomes of Global Public–Private Partnership (PPP) Projects: A Stakeholder Perspective |
| title_full | Exploring Risk Factors Affecting Sustainable Outcomes of Global Public–Private Partnership (PPP) Projects: A Stakeholder Perspective |
| title_fullStr | Exploring Risk Factors Affecting Sustainable Outcomes of Global Public–Private Partnership (PPP) Projects: A Stakeholder Perspective |
| title_full_unstemmed | Exploring Risk Factors Affecting Sustainable Outcomes of Global Public–Private Partnership (PPP) Projects: A Stakeholder Perspective |
| title_short | Exploring Risk Factors Affecting Sustainable Outcomes of Global Public–Private Partnership (PPP) Projects: A Stakeholder Perspective |
| title_sort | exploring risk factors affecting sustainable outcomes of global public private partnership ppp projects a stakeholder perspective |
| topic | public–private partnership (PPP) risk factors sustainable outcomes stakeholder relationship |
| url | https://www.mdpi.com/2075-5309/13/9/2140 |
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