| Title |
The Effects of Business Environments on the Size of PPP (Public-Private Partnership) Investment in Middle-Income Countries |
| Authors |
Jung, Suksoo ; Park, Hyeon ; Seo, Junwon |
| DOI |
https://dx.doi.org/10.6106/KJCEM.2025.26.1.003 |
| Keywords |
PPP; Public Private Partnership; PPP framework; Business Environment; Index of Economic Freedom |
| Abstract |
This study aims to identify the factors of business environment in middle-income countries that influence the investment size in Public-Private Partnerships (PPPs), with the objective of drawing implications to mitigate risks for Korean companies participating in overseas PPP projects. To achieve this, correlation and regression analyses were conducted on the investment amounts of PPP projects in 53 middle-income countries from 2017 to 2019, using variables published by the World Bank and The Heritage Foundation. The analysis reveals that PPP investment is influenced by GDP, government debt-to-GDP ratio, protection of property rights, and PPP contract management. These findings support the argument that countries should protect property rights and establish robust PPP frameworks to attract private investment in infrastructure development. Additionally, the analysis highlights GDP, rather than the GDP per capita, and government debt ratio as significant factors in promoting PPPs. This suggests that the ideal target countries for Korean companies to enter into PPP projects are those with relatively large economies and substantial investment needs to bridge the infrastructure gap through PPP initiatives. |