Research On The Landing Rate Of PPP Projects In China

After the eighteenth CPC National Congress,facing the domestic situation that the demand for infrastructure construction is expanding and the debt crisis of local governments is emerging,China clearly proposes to promote the cooperation model between government and social capital for infrastructure construction,thus setting off a boom in the development of PPP(public-private partnership)model in China.Since 2014,the number and amount of PPP projects in China have been blowoutlike growth,but at the same time,the landing rate of PPP projects is not considerable,and the landing rate of all regions is generally low.That is to say,although the number and amount of PPP projects are very high,there are few projects that can achieve landing,that is,to enter the stage of procurement.Therefore,it is of great theoretical and practical significance to study the landing problem of PPP projects to improve the landing rate of PPP projects in China,and to better promote the financing mode of PPP in order to give full play to its advantages and characteristics.To achieve the research purpose,this paper firstly summarizes and analyses the relevant theories and existing research literature of PPP and draws the framework of this paper.Secondly,this paper combs the development process and development status of PPP model in China.According to the information in the comprehensive information platform and project database of Government-Social capital cooperation,the overall situation of China's PPP project is divided into regions and industries.Thirdly,based on the governance level of local government and the economic strength of local government,this paper puts forward the corresponding research hypothesis,and establishes a multiple regression analysis model for empirical research.Finally,based on the provincial panel data from 2015 to 2017,the empirical analysis results show that the local government's reputation level and policy stability have a positive impact on the landing rate of PPP.That is,the higher the local government's reputation level or the more stable the local government's policy,the higher the landing rate is,and the higher the local government's economic strength is.On the one hand,the level of fiscal expenditure and debt of local governments has a positive effect on the landing rate of PPP,that is,the higher the level of fiscal expenditure or debt,the better the landing rate of PPP projects.Next,this paper makes an empirical analysis of the regional,industry and return mechanism.The results show that the eastern region pays more attention to the local government's economic strength,while the central and western regions pay more attention to the local government's governance ability in addition to the economic strength.This is mainly due to the more relevant policies in the eastern region.The results of empirical analysis show that the private sector pays more attention to the governance ability and economic strength of local governments in industries with high participation of government departments;the empirical analysis of the returnsharing mechanism shows that projects requiring government to bear relevant costs are more important to the private sector.Credit level and financial strength.Based on the above research conclusions,this paper puts forward corresponding policy recommendations,namely,local governments should improve relevant laws and regulations to protect the legitimate rights and interests of participants;local governments should actively transform government functions,stimulate local development vitality and innovate financial products related to PPP financing mode,so as to enhance market participation enthusiasm.