Research On The Investment Return Rate Of PPP Projects Of Urban Comprehensive Development

In the process of China’s reform and opening up and the pursuit of new urbanization,urban comprehensive development has always played an important role.In 2022,China’s urbanization rate(the proportion of urban population to total population)reached 65.22%.Referring to the level of developed countries,another200 million people need to enter urban stable life.With the steady improvement of China’s urbanization level,the demand for urban comprehensive development is increasing,leading to an increase in government investment and huge financial pressure on the government.In order to alleviate the pressure of investment and construction,the government has introduced the PPP model,which guides social capital to participate in investment and improves management efficiency,thereby improving the quality of public products and services.Comprehensive development is vital to the sustained development of regional economy,and it is also the foundation for the government to effectively provide public services.It focuses on the construction,renovation,and operation of the secondary and tertiary industries,and most projects have obvious user fees and are profitable.Therefore,urban comprehensive development PPP projects have the ability to obtain stable cash flow in a short period of time,establish a stable profit mechanism,and effectively stimulate social capital to actively participate in providing public products and services.The government expects to produce high-quality public products and services at a lower cost to enhance social benefits,while the social capital expects to participate in the project and obtain satisfactory returns.Therefore,both the government and social capital have an inherent motivation to actively participate in the project.Based on the characteristics of large investment scale and long construction and operation period of such projects,combined with macro factors in the project location,this paper focuses on the investment return rate of the project,which is the result of the game between the two parties.Previous scholars have studied the PPP model from different perspectives,and most of them have determined the factors affecting the investment return rate through case analysis,questionnaires,and other methods.By studying the game between the two parties,they determined the profit mechanism and project investment return rate.However,most articles did not classify the investment return rate of PPP projects.Therefore,this paper plans to supplement the study of such PPP projects and use empirical research methods to establish a model and provide empirical evidence for determining the investment return rate of such PPP projects.This paper aims to conduct an empirical study on the factors affecting the investment return rate of urban comprehensive development PPP projects by Hierarchical Linear Model.Firstly,this paper reviewed relevant literature to understand the current research status of the factors affecting the investment return rate of such PPP projects.Secondly,based on the theory and the current investment return rate of such PPP projects,this paper proposed reasonable hypotheses and determined the influencing factors.Then,a multilevel linear model was established to analyze the factors affecting the investment return rate of such PPP projects.The results showed that five factors at the project level,including total project investment,project cooperation period,operation mode,procurement mode,and three factors at the regional level,including government financial capacity,capital market development level,and economic development level,mainly affect the investment return rate of urban comprehensive development PPP projects.Additionally,the economic development level would modify the intercept term of the final model,and the government financial capacity and capital market development level have opposite effects on the project cooperation period,indicating the cross-level regulation of the investment return rate of PPP projects in the multilevel linear model.Finally,this paper summarized the research results and provided relevant suggestions.