Weathering the financial crisis

Burger, Philippe; Tyson, Justin; Karpowicz, Izabela; Coelho, Maria

doi:10.4324/9780203079942.ch13

Cited by 4 publications

(6 citation statements)

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“…The control variable of the year 1997 had a positive and significant impact on all models, while 2007 had a positive and significant impact on Models 1 to 3. The results are consistent with a greater use of PPPs in periods of economic crisis (Burger et al, 2009).…”

Section: Data and Main Empirical Findingssupporting

confidence: 79%

“Sand” or “grease” effect? The impact of corruption on the investment volume of public−private partnerships

Asín

Muñoz

2021

IJOEM

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PurposeSome scholars argue that corruption hinders economies and investment because it generates extra costs, while others suggest that it can act as a stimulus. Their mixed empirical findings have prompted the analysis of whether investors' attitude towards corruption changes depending on its degree of prevalence.Design/methodology/approachThe authors examined 4,518 public–private partnerships (PPPs) located in 46 developing countries for the period 1997–2017. The data were collected from the World Bank PPP database. The authors investigated the relationship between the amount of investment in PPP projects and the level of corruption using regression with multilevel mixed effects.FindingsCorruption and the amount of investment in PPP projects are inversely related at the low and high end of the spectrum of corruption, but the relationship is positive towards the middle. Further analysis revealed that this was spurred by high investment PPP projects in less developed countries.Originality/valueThe findings allow the authors to reconcile the opposing positions in the literature through a “sand–grease–sand the wheels” effect between the volume of investment and corruption, which can be configured as a reverse S-shape consisting of three stages.

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Section: Data and Main Empirical Findingssupporting

confidence: 79%

“Sand” or “grease” effect? The impact of corruption on the investment volume of public−private partnerships

Asín

Muñoz

2021

IJOEM

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“…Revenues from the service usually accrue in local currency. As a result, an unexpected depreciation of the host country's currency can substantially affect the profitability of a project, especially with regard to debt servicing in developing countries where hedging is impossible due to the absence of forward markets for their currencies (Burger et al, 2009). Thus, the exchange rate volatility will deter private investors from engaging in ownership and management control unless contracts include revenue guarantees from the government or are regulated by global or regional development agencies with financial and risk management expertise to avoid litigations, renegotiations, and further transaction costs (Hammami et al, 2006).…”

Section: Social Riskmentioning

confidence: 99%

“…Moreover, if the private partner is a foreign investor, a depreciation of the host country currency reduces the relative production costs of local inputs such as labor, land, machines, and assets (Giap et al, 2020). If resources are imported, costs depend on the exchange rate of the country-of-origin currency (Burger et al, 2009). Research also suggests that the exchange risk varies across sectors and is more critical when imported plant equipment and instrumentation constitute the bulk of the investment (Mazher et al, 2018).…”

Section: Social Riskmentioning

confidence: 99%

Private ownership and management control decisions in infrastructure from the perspective of Transaction Cost Theory: Evidence from emerging economies

Baker,

Haddad

2023

Economics & Politics

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From the perspective of Transaction Cost Theory, this paper proposes a conceptual model to assess ownership and management control decisions of private partners in public‐private partnerships for infrastructure with regard generic risk factors, namely asset specificity, demand risk, environmental risk, social risk, macroeconomic risk, and governance or behavioral risk. Using an ordinal logistic model, hypotheses are tested on data covering 2152 projects in 12 emerging countries for the period 2010–2019. Overall results indicate that the extent of private ownership and management control is negatively related to risks, the marginal effects of which are moderated by high‐quality public institutions.

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“…The average increase of the share of local government in total public investment in OECD countries, despite of financial crises, could be influenced by increase in the costs of the investment projects or lagged effects of financial crises on the stance of local finances which is visible with delay. PPP is vulnerable during the crisis which can be visible in the delays in starting the new projects or in their cancelation (Burger et al 2009). 2 European countries have different experiences with PPP.…”

Section: Research Backgroundmentioning

confidence: 99%

“…As stressed inBurger et al (2009) the most of delays were caused by uncertainty regarding access to finance, demand and costs of financing, while the survey conducted regarding 316 projects in period between July 2008 and February 2009 showed that the largest delays were in the energy and transport sector.…”

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confidence: 99%

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2019

JAES

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The journal seeks to promote the best papers and researches in management, finance, accounting, marketing, informatics, decision/making theory, mathematical modelling, expert systems, decision system support, and knowledge representation. This topic may include the fields indicated above but are not limited to these.Journal of Applied Economic Sciences be appeals for experienced and junior researchers, who are interested in one or more of the diverse areas covered by the journal. It is currently published quarterly in Spring (30 th March), Summer (30 th June), Fall (30 th September) and Winter (30 th December).

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Weathering the financial crisis

Cited by 4 publications

References 0 publications

“Sand” or “grease” effect? The impact of corruption on the investment volume of public−private partnerships

“Sand” or “grease” effect? The impact of corruption on the investment volume of public−private partnerships

Private ownership and management control decisions in infrastructure from the perspective of Transaction Cost Theory: Evidence from emerging economies

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