The role of institutions in private participation in infrastructure revisited

This paper aims to examine institutional effects on the private participation in infrastructure (PPI) projects during the recent period for 2002-2017 with 117 sample economies, by using the PPI and the Worldwide Governance Indicators database of the World Bank. The study contributes to enriching the evidence by updating the sample time-horizon and by widening the coverage of sample economies. The main findings of this study are summarized as follow: the institutional role in promoting the PPI projects are clearly identified in terms of government governance indicators such as government effectiveness, regulatory quality, rule of law and control of corruption; in particular, the control of corruption, which is the controversial issue in the previous studies, is confirmed to be one of the important factors to boost the PPI projects; and the macroeconomic stability is also a significant contributor for the PPI projects