THE RELATION BETWEEN ECONOMIC GROWTH AND PUBLIC-PRIVATE PARTNERSHIP MARKET DEVELOPMENT IN THE COUNTRIES OF THE EUROPEAN UNION
DOI:
https://doi.org/10.5755/j01.em.18.2.4223Keywords:
Public-private partnership (PPP), PPP market, economic growth, European Union, correlation analysisAbstract
Over the last two decades the public-private partnership (PPP) has expanded in both a number and value of projects inside the European Union (EU). Considering to the financial features of PPPs it is able to do the assumption that requirement to initiate PPPs especially arises in the situation of lack of budget to implement the public sector projects in desirable quality and scale. However, in the period of economic recession when this problem was the most relevant PPP market has declined considerably and more reflected the changes of gross domestic product’s (GDP) growth than related with the assumption mentioned above. The encouragement of PPP is going to play a significant role in the policy of the EU during the next financial perspective 2014 – 2020. Therefore, the researches of factors influencing the PPP market development are very relevant. As a result this paper is intended for the relation between GDP growth and PPP market development to analyze.
Research objective: to examine whether it is possible to envisage the positive relation between economic growth and public-private partnership (PPP) market development in the countries of the EU and evaluate how strong this relation is.
Research methods: scientific literature analysis; statistical data analysis; document analysis.
Research results: The development of PPP market had a general tendency to reflect the changes of GDP growth inside the EU, however, the situation was very different in every country. Only several countries such Belgium, Ireland, France and the United Kingdom (UK) have characterized by the medium and strong correlations between GDP growth and PPP market development. The correlations of GDP growth with the number of PPP deals are statistically significantly stronger than with the capital costs of PPPs in group of the top-10 countries. There are no statistically significantly differences between the influences of prognosticated and entire data of GDP growth on the PPP market development as the correlations of GDP growth and PPP market development between the countries net contributor and net recipient (except one case), though the differences were observed. However, due to conditionally low correlations in most of the countries these differences have to be treated with a caution.
