Work

Measuring public-private partnership efficiency: A sectoral analysis of electricity and ports

Year: 2025

Type: article

Abstract: The paper proposes to measure the role of PPP investments in the ports and electricity sectors in shifting the efficient production frontier as well as their role in the electricity sector as determinants of inefficiency through stochastic frontier analysis and fixed-effects estimation. It also proposes to analyze the role of the governance framework in the efficiency of PPPs. The results showed a positive contribution of sectoral PPPs in the shift of efficient frontier. However, the contribution of PPPs in the ports sector (3%) is greater than that of the electricity sector (1%). For the electricity sector, PPPs as well as the governance framework proxied by credit to the private sector and CPIA criteria measuring the financial sector development (c.5) contribute to bridging the inefficient distance. While the criteria measuring the quality of budgetary and financial management (c.13) increases the inefficient distance. In the port sector, trade openness, exchange rate and debt policy (c.3) reduce the inefficient frontier, while monetary policy (c.1) increases the inefficient frontier.

Source: International Economics

DOI: 10.1016/j.inteco.2025.100630

Author: Ababacar Mbaye Sambe

Institutions: African Development Bank Group, Aix-Marseille Université, Aix-Marseille Sciences Economiques

Language: English

Topic: Public-Private Partnership Projects

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Affordable and clean energy

Open Access status: hybrid

Estimated APC paid: $3,660