Determinants of PPP Project Allocation: A Study of European Donors

Abstract

This thesis investigates the determinants of European donors' PPP project allocation and their partnership patterns. Using regression models, this study empirically analyzed 22 European countries' PPP project allocation in 135 developing countries for the period of 1990 to 2013. The empirical results indicate that European donors consder market size, regulatory quality of developing country, and bilateral economic and political relations. What is more, it was found that European donors with less external debt are more likely to implement PPP projects. The analysis also showed that European donors are not only influenced by their own economic and political interests, but they are also reactive to any other European donors' behaviors when implementing PPP projects in developing countries.