The formation of public-private partnerships in China: an institutional perspective

Abstract

This study offers a sociopolitical perspective on the worldwide diffusion of liberalisation reforms in infrastructure industries. It unpacks the heterogeneity in the extent to which the private sector is allowed to participate in these industries through an analysis of the formation of public-private partnerships in Chinese cities. This study considers the effects of horizontal and vertical diffusion mechanisms on the adoption of different types of public-private partnerships in different infrastructure sectors. An analysis of projects with private participation in 333 Chinese cities between 1992 and 2008 reveals that the spatial effects appear to be significantly modulated when the influence from structurally equivalent peer cities are considered; moreover, the effects of the vertical diffusion mechanisms are moderated by the liberalisation index of the contract forms, and the horizontal diffusion mechanisms are moderated by the marketability of the infrastructure segments.