Determinants of Infrastructure Public-Private Partnership of Latin America

Abstract

Public-Private Partnership has been getting more and more popularity especially in developing countries recently, as an alternative way of financing for infrastructure provision. Latin America has conducted a fine performance in general, but the success is quite limited to only few countries and the factors that make this difference have been underdeveloped. This paper examines such a question, focusing on institutional factor and legal system of Latin American context. Findings show that the large market size, stable macroeconomic environments and quality governance with efficient legal system and stable regime lead to more PPP in Latin America including the most recent data, similar to examined in the existing literatures. But it is found that not only the host countrys conditions as a investment destination but the initiative interpreted from an agency dedicated to PPP or special law regarding PPP the country takes also matter to a great deal.