Research On The Impact Of PPP On The Efficiency Of Public Infrastructure Supply

Since 2014,PPP has been vigorously promoted in the field of public infrastructure in China.This is exactly the period when the contradiction between the local financial shortage and the expansion of the demand for local public infrastructure is rising.In terms of the shortage of local fiscal funds,on the one hand,in order to promote the development of enterprises and encourage corporate innovation,the state has adopted an active fiscal policy to reduce fiscal revenue;on the other hand,in order to solve the problem of hidden debts of local governments,the state has divested the financing platform’s function of financing local governments and cut off the channels for increasing local fiscal funds through financing platforms.For increasing demand of public infrastructure,on the one hand,China is in a new urbanization period,and various regions need to increase public infrastructure construction to meet the public service needs of local residents;on the other hand,China is a major player in the “Belt and Road” initiative and advocating countries.In order to strengthen economic and cultural exchanges between countries along the route,it is urgent to establish a complete set of supporting infrastructure.The contradiction formed by the above background has made local governments see PPP as a tool to solve the financing gap of public infrastructure construction for a while,and package,split,and bundle local public infrastructure projects into PPP projects.However,the sharp increase in the number of PPP projects and the continued low PPP project implementation rate have caused the government and the whole society to calmly face PPP.Combined with China’s current supply-side reforms of "stabilizing growth,promoting reform,and benefiting people’s livelihoods," the whole society has gradually recognized that PPP is a long-term public infrastructure supply model,not a "short-lived" financing tool.So far,both the theoretical and practical circles have begun to pay attention to the effect of PPP implementation,trying to explore the degree of PPP impact on the efficiency of public infrastructure supply and its impact mechanism.However,most of the existing literature and related materials are related to research from the methods of data description,case analysis,and qualitative discussion,and there are not much literature that use scientific econometric models for research.In a small amount of related literature,there are some shortcomings when evaluating the efficiency of PPP implementation,such as the wrong selection of the measurement index of public infrastructure supply efficiency,the inability to select suitable PPP proxy variables,and insufficient model verification.In this regard,this paper uses a combination of theory and practice,a combination of theoretical models and econometric models,and a combination of qualitative analysis and quantitative analysis to deeply study the impact of PPP on the efficiency of public infrastructure supply.People’s research results have been improved.First,based on the function of PPP,this paper improves and enriches the existing definition of PPP in China,and attempts to construct a comprehensive index of PPP as the proxy variable in the research of PPP measurement model for the first time in empirical research.Considering that the essence of PPP is the introduction of private capital in the field of public infrastructure,this article considers the average proportion of private capital in PPP projects as one of the factors in the PPP comprehensive index when constructing the PPP comprehensive index,so that the constructed PPP comprehensive index is more Be representative;secondly,the first use of a more robust Censored Least Absolute Deviations method instead of the Tobit model for empirical research makes the results more scientific and reasonable;thirdly,the first time the static supply efficiency and dynamic supply efficiency of public infrastructure are combined to evaluate the efficiency of PPP implementation.Considering that PPP is a long-term supply model,combining static evaluation and inter-temporal evaluation when evaluating the implementation efficiency of PPP can make the evaluation results more objective,authentic,and effective.The basic content of this article includes:First,a theoretical framework for the impact of PPP on the supply efficiency of public infrastructure is constructed.First,PPP,public infrastructure,and public infrastructure supply efficiency are defined and classified separately.Secondly,after analyzing the attributes of public infrastructure,starting from public product theory and government failure,the possibility of cooperation between government and social capital in the field of public infrastructure is discussed,and the improvement of the efficiency of public infrastructure supply lies with government and society The degree of cooperation of capital.Finally,it reveals that the nature of PPPs affecting the efficiency of public infrastructure supply is the principal-agent relationship between the government and the public,between government and social capital,and the transaction costs incurred between the various links in the provision of public infrastructure.Second,we carefully combed the development process of PPP in the field of public infrastructure in China,and objectively analyzed the status of implementation of PPP in the field of public infrastructure in China.Since the modern significance of PPP in China has been vigorously promoted since 2014,when analyzing the development history of PPP,this article takes 2014 as the time node,and sorts it out from before and after the vigorous promotion of PPP.Before vigorously promoting,PPP in China experienced four stages of exploration,trial,promotion,and twists and turns;after vigorous promotion,it was the regulatory phase of PPP.When analyzing the status of PPP implementation,this article first sorts out the important policies of PPP in the field of public infrastructure,interprets the applicable areas and directions of PPP,and then reveals the status of implementation of PPP model in China from the current operation of PPP projects.Finally,according to the status quo of China’s infrastructure PPP,the problems existing in China’s infrastructure PPP are summarized,and their causes are analyzed.Third,measure the static and dynamic supply efficiency of public infrastructure.First,according to the industry to which the PPP project belongs in the World Bank’s PPI database,the indicators to measure the efficiency of the supply of public infrastructure are selected;then the improved entropy weight method is used to add weights to the specific sub-projects of each indicator to calculate the comprehensive output value of the public infrastructure.Then,use the scientific DEA-Malmquist model to measure the static supply efficiency,dynamic supply efficiency,and its decomposition terms of public infrastructure,and pave the way for subsequent research.Fourth,empirical research.First,the total amount of PPP projects in each province in China from 2008 to 2017 in the World Bank’s PPI database was manually sorted out,and the average proportion of social capital in the projects was calculated by using the improved entropy weight method.As a proxy variable for PPP in subsequent studies.Secondly,Stata 15.0 software was used to construct Censored Least Absolute Deviations method(CLAD model)to analyze the impact of PPP on the static supply efficiency,dynamic supply efficiency and its decomposition terms of public infrastructure.The research results show that: PPP can significantly improve the static supply efficiency of public facilities,but there are regional differences in the impact on the eastern,central,and western regions,and the increase in the efficiency of public infrastructure supply in the western region is most obvious.Second,the impact of PPP on the dynamic supply efficiency of public infrastructure is not obvious enough.This is because there are regional differences in the implementation efficiency of PPP in public infrastructure.The overall level of the impact of various regions has neutralized,resulting in empirical results.Significantly.Third,under the national average,PPP has failed to promote the technological progress of public infrastructure supply;under the regional verification,PPP has a significant impact on the technological progress of public infrastructure supply in the western region.Fourth,at the overall level,the impact of PPP on the change rate of technological efficiency is not significant;the empirical results are very significant under the regional inspection,and PPP has significantly promoted the efficiency of public infrastructure supply in the eastern and western regions,but failed to improve the central region.Regional efficiency changes.After further analysis,it was found that the greater the degree of market openness and the higher the development level of private enterprises,the more PPP can promote the improvement of the efficiency of public infrastructure supply.Fifth,case studies.Two national-level demonstration PPP projects were selected for field investigation and case analysis.These two cases are the PPP project of Huang Jinshan Mountain Kitchen Waste Treatment Plant and the PPP project of Huangshi Olympic Sports Center.First of all,the basic situation of the project is introduced,and the comprehensive strength of the selected social capital,the management team structure,technical support and business experience are emphasized.Then,the role and shortcomings of PPP in project supply efficiency in each project are analyzed from three dimensions,namely preparation period,construction period and operation and maintenance period.Finally,a general summary of the two cases is made at a macro level,including: first,PPP matches projects with social capital according to industry characteristics,ensuring efficient project supply;second,PPP introduces market competition mechanisms to effectively reduce The project cost has been increased,and the project revenue has been increased.Third,PPP has innovated the cooperation mode between the government and social capital,which has provided a guarantee for improving the supply efficiency of the project.However,there are still some problems with the current PPP,including: first,the project’s advanced planning conflicts with the nature of the PPP;second,lack of legal guidance,and there are still violations in the operation of the PPP.Sixth,the two most classic methods of PPP are the British PFI / PF2 model and the French franchise model.In addition,both the United Kingdom and France have the longest history of PPP development and the most mature implementation effects.Therefore,this article selects the United Kingdom and France,studies the development history and current situation of PPP in these two countries,summarizes the successful experience of PPP operation,and provides international experience for the efficient operation of PPP in China.Research shows that a sound PPP legal system,a complete PPP management structure,a professional PPP third-party organization,and correct project positioning are the key factors that enable PPP to operate successfully and improve project supply efficiency.Seventh,put forward policy recommendations to promote PPP to improve the efficiency of public infrastructure supply in China.Based on the previous research results,policy recommendations are made from three aspects: building the external ecological environment of PPP,stimulating the enthusiasm of private capital to participate in PPP projects efficiently,and establishing supporting mechanisms for the efficient operation of PPP.The first aspect is to strengthen the ecological environment construction for the efficient operation of PPP in the field of public infrastructure.The specific manifestations are as follows: accurately identify the attributes of public projects and choose the appropriate public-private cooperation model;build a comprehensive PPP legal system to provide policy guidance for the efficient operation of projects;Build a complete PPP management system to improve PPP management efficiency.The second aspect is to guide private capital to actively and efficiently participate in public infrastructure PPP projects,which are specifically manifested in: increasing tax incentives and reducing the cost of private capital participation in PPP projects;optimizing the PPP market environment and improving the efficiency of private enterprise implementation in PPP projects;Accelerate the transformation of government functions,and provide guarantees for the efficient implementation of PPP projects by private enterprises.The third aspect is to establish a supporting mechanism for the efficient operation of PPP projects,which are specifically manifested in: establishing a public participation mechanism,strengthening social supervision of PPP public infrastructure projects;expanding PPP financing channels,and using various financial instruments to invest in public infrastructure projects;Strengthen the construction of professional institutions and professionals to ensure the professional operation of PPP.