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Preprints are early versions of research articles that have not been peer reviewed. They should not be regarded as conclusive and should not be reported in news media as established information.
Social Capital Participation in Public-Private Partnership Projects in China: Do Government Credit Risks Matter?
In China the Public-Private Partnership (PPP) projects
are adopted to achieve the
strategic goals of governments and to ensure the
sustainable operation of local government finances. However, rigorous empirical
research on the determinants of social capital’s participation in PPP is sparse.
This study investigates the effects of government behaviors on the participation
of social capital in the PPP projects by focusing on the role of government
credit risks. We construct a dynamic game and adopt an empirical analysis using
panel data of Chinese provinces from 2013 to 2018. Our findings reveal a
significant inverse relationship between the government credit risk and the
social capital participation in PPP. It provides policy-makers and researchers with
useful information about using the PPP to promote investment on infrastructures
while ensuring a sustainable local fiscal system.
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