Public-Private Partnerships in Developing Countries: Are PPPS in Infrastructure Useful for Government Budget Balance and Economic Growth
Public-Private Partnerships (PPPs) are increasingly growing and becoming a major means for investment in
public infrastructure in most countries over the last two decades. For empirical investigation, panel data approach is utilized
to develops a PPP model in 25 developing countries during 1990-2015 regarding the relationship between PPPs and
government fiscal position. Findings reveal that a weak relationship between PPPs investments and budget deficit, while
PPPs investments have a positive significant relationship with economic growth. Consistent with previous studies the
findings confirm the results of previous studies about the use of PPPs as a means of evading expenditure controls and hiding
Key words- Public private partnerships (PPPs), Infrastructure, budget deficit, economic growth.