Alcaraz Carrillo de Albornoz, V; Ke, Y and Molina Millán, J (2024) Public-private partnerships: Pro-cyclical or counter-cyclical? An empirical study. International Journal of Construction Management, 24(1), pp. 97-107. ISSN 1562-3599
Abstract
The use of public works programs to combat economic recessions is a recurring issue. In this paper we conducted an empirical analysis covering 160 countries (out of which 43 were retained) over 30 years, to determine to what extent it has been possible in the past to deploy PPPs as part of a wider countercyclical policy. The main criterion used in the analyses performed is the comparison between numbers and values of PPP projects reaching financial close during recessions and those outside a recession. The results are disappointing: only a handful of European countries have been successful. The only sensible approach, that works only in some developed nations, would be increasing the number of PPP projects while maintaining project size. This research contributes to the understanding of PPP adoption during economic recessions, sheds light on the different strategies of developed and developing countries, and emphasizes the challenges and opportunities associated with implementing countercyclical PPP policies. These insights can inform policymakers, practitioners, and researchers in their decision-making processes and contribute to the advancement of knowledge in the field of PPP project procurement and management.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | countercyclical; economic crisis; public-private partnerships; recession |
| Index terms: | practitioner, program, project procurement, developing country, strategy, public work, empirical study, recession, partnership, decision-making process |
| Subjects: | development economics, infrastructure engineering, software systems, research methods, management, decision analysis, partnership management, practitioner, economic analysis, contractual arrangements |
| Topics: | International Construction, Digital Applications, Procurement, Roles and Professions, Stakeholder Management, Risk Management, Research Practice, Engineering Principles, Business Strategy |
| Descriptive scope: | 3 PCA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here