Policy Innovation Diffusion and PPP Spatial Distribution

Abstract

Abstract Since 2014, PPP policy has been promoted rapidly in China. Based on the theory of policy innovation diffusion, this paper explores the formation mechanism of PPP spatial disequilibrium at the micro level using Chinese municipal-level panel data from 2014 to 2019. According to the research, the innovation diffusion of China’s PPP policy at the local-government level exhibits R-shaped non-progressive characteristics and is influenced by both internal and external factors. On the internal side, the debt pressure of local governments is an important determinant with an inverted U-shaped influence on PPP policy. On the external side, imitation and competition among neighboring local governments are the main external determinants. This spatial strategic interaction occurs not only in same-province regions with close proximity and similar economic development but also in different-province regions with close proximity. The above studies of er certain insights into optimizing the spatial distribution pattern of PPP and guarding against fiscal risks.