Research On The Relationship Between Financial Indicators And Investment Scale Of PPP Projects In Fujian Province Counties

The PPP model was born in the UK in the 1980 s,and China began to implement the PPP model in 2014 to attract private capital to participate in the construction of infrastructure.In recent years,the central and local governments have actively promoted the application of PPP model in engineering practice to achieve the purpose of driving local economic development and expanding the supply capacity of public services and infrastructure.As of the 4th quarter of 2022,the website of the Center for Government and Social Capital Cooperation of the Ministry of Finance shows 282 total county PPP projects in Fujian Province,with a total investment amount of 210.5 billion yuan,the number of county PPP projects and the total investment amount in the province are huge,and how to further promote the steady implementation of the PPP model in counties has become a serious and urgent task at present.This paper studies the relationship between financial indicators and investment scale of PPP projects in counties of Fujian Province with the aim of providing theories and inspirations for the promotion of PPP model in counties,so as to promote the theoretical and practical development of PPP model in counties.Based on relevant theories,this paper investigates the relationship between county fiscal indicators and the investment scale of PPP projects in counties in Fujian Province,using the fiscal indicators and the characteristics of PPP projects as data samples.Firstly,the relevant domestic and foreign literature is sorted out and studied to understand the theoretical basis of PPP model and the related influence mechanism,and the data is compiled and analyzed through the county financial indicators and the characteristics of PPP projects in Fujian Province,so as to understand the current situation of county finance and the implementation of PPP projects in Fujian Province.Then,the empirical analysis of the influence of county financial indicators on the investment scale of PPP projects in Fujian Province is carried out by multiple linear regression method,and the empirical analysis of the influence of the implementation of PPP projects on economic development in Fujian Province is carried out by double difference method.The quantitative analysis results show that the effect of county financial capacity on the investment scale of PPP projects is significant,and the implementation of PPP projects in counties will promote the development of local economy,while the influence mechanism is analyzed in depth.Finally,through the research results and combined with the PPP mode support policies introduced in Fujian Province,we propose recommendations for standardizing the management and development of county PPP mode based on different perspectives: first,determine the investment scale of PPP projects according to financial affordability;second,improve the project return mechanism in areas with weak financial capacity;third,increase the financial and taxation policy support for social capital;fourth,promote the PPP mode according to local conditions;fifth,strengthen the training of professional talents in PPP mode;sixth,reasonably use professional third-party consulting agencies to promote the implementation of PPP projects;seventh,optimize the government organization and guarantee mechanism.