Browsing by Author "Nashalian, Araz Sarkis"

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    The Direct and Indirect Impact of Public Private Partnerships in Infrastructure on the GDP of Developing Countries
    (2019) Nashalian, Araz Sarkis
    The Millennium Development Goals, which were approved by the leaders of 189 countries at the United Nations Millennium Summit in 2000 and Sustainable Development Goals agreed on 2015, promote Public-Private Partnerships (PPP) in infrastructure as a vehicle for growth and as a means to eradicate poverty in developing countries. This thesis examines the direct and indirect impact of public-private partnerships’ (PPP) investments on GDP in developing countries. The model builds on Solow's neoclassical production function taking into account the traditional factors of production, capital and labor, to which are added other contributors to growth, such as human capital and the institutional quality, two other dimensions developed by Robert Lucas, Douglas North and Paul Romer. Panel regressions with fixed effects on a sample of 81 developing countries for the period of 2000-2016 provide evidence that PPP infrastructure investments have a positive impact on GDP per capita. The results also confirm that the marginal effect of the labor force participation rate, other investments and the human development index on GDP per capita are further enhanced by such investments. Furthermore, the results show that the marginal effect of investments in PPP on GDP per capita depends itself on the host country’s regulatory quality.