Analysing the link between corruption and PPPs in infrastructure projects: an empirical assessment in developing countries

Abstract

This study analyses the relationship between Public-Private Partnerships (PPPs) and corruption. To do this, several econometric analyses were developed using a sample of 92 low- and middle-income countries over the period 1995-2018. There is research in the literature that discusses the theoretical vulnerability of PPPs to corruption, but this study adds empirical evidence, considering that developing countries have more problems with corruption. The results suggest that corruption has a positive impact on the number of PPP arrangements and on the amount of investment commitments. This provides evidence of a positive link between corruption and PPP projects.