Research On PPP Model For Providing Public Goods In China

This paper mainly studies the necessity of using PPP mode to provide public goods in China.This paper first combs the relevant literature of PPP at home and abroad,and finds that the current research mainly focuses on the basic theory of PPP,PPP feasibility and PPP practice mechanism.The research on PPP is relatively rich,but the research on PPP and fiscal related impact is less,and focuses on the research on the qualitative analysis and feasibility,and lack of theoretical research on the necessity of PPP mode to provide public goods.Secondly,due to the late start of PPP in China,there is a lack of sufficient time and data for quantitative analysis;thirdly,the current domestic and foreign case studies only analyze domestic and foreign,lack of comparative analysis and adaptability to specific environment.On the basis of combing the current situation of PPP research and practice,this paper determines the research theme,and plans to demonstrate the necessity of using PPP model to provide public goods from three aspects: theoretical research,historical evolution analysis and empirical research.This paper demonstrates the role of PPP in optimizing resource allocation,reducing the pressure of current fiscal expenditure and improving social welfare from the theoretical research;reveals the contradiction between the expansion of public goods demand and the transformation of government functions and the limited local financial resources from the historical evolution of China's public goods and PPP model;from the aspect of empirical research,it is proved that the goal of PPP declaration in China is not to meet the demand of public goods,and the return model of relying on government payment has not changed;on the basis of the successful experience and failure lessons of specific PPP cases at home and abroad,this paper puts forward the corresponding suggestions for China to adopt PPP mode to effectively provide public goods.In the aspect of theoretical research,starting from the traditional theory of public goods,this paper lists some goods in a gradual way with the strength of exclusiveness and competitiveness,and refines the classification of goods;it is proposed that the supply mode of public goods does not necessarily need the government to act as the producer.When providing some kinds of public goods,the government is more suitable to act as the arranger and manager,and the private sector is responsible for it Specific production.This paper analyzes the development of privatization theory,and finds that although there are pros and cons of privatization,many disadvantages are caused by imperfect mechanism.PPP mode takes the first place in privatization in terms of scale and influence,it solves the disadvantages of privatization to some extent due to its cooperation concept and co-management mechanism.This paper analyzes the development of public finance theory,and holds that public finance should be a kind of finance to make up for the defects of the market.The development of co-governance theory is analyzed.Both the government and the market are defective,the cooperation between the government and the private sector will be more conducive to the improvement of social welfare.This paper analyzes the current debate on the advantages and disadvantages of PPP theory,and finds that the debate mainly focuses on what benefits can be brought by the success of the project,and what adverse consequences will be caused by the failure of the project,which are feasibility studies.Based on the analysis of the development of relevant theories,this paper studies the necessity of PPP mode to provide public goods,and finds that the optimal allocation of intergenerational resources needs to be based on the effective supply of public goods.The current utility of public goods is greater than the next utility,which means that more public goods should be provided as soon as possible.PPP mode does not cause the change of total fiscal expenditure,can introduce competition,make the supply mode of public goods and services tend to competitive equilibrium,thus increasing social welfare.On this basis,it also analyzes the changes of public goods caused by technological progress,such as the further enhancement of exclusivity,the change of original competitiveness,the intangible,the globalization and the blurry boundaries.From a new perspective,public goods can be divided into preventive public goods,management public goods and institutional public goods.For the management public goods,the government is more for management,guidance,supervision,coordination.PPP mode is a typical mode of government management,market production and maintenance.This paper analyzes the supply of public goods and services since the founding of the People's Republic of China.Before the reform and opening up,the city implemented the system of units,each unit is responsible for their own units and their families of public goods;In rural areas,people's communes are responsible for the provision of basic public goods,showing a low level of supply of public goods,a single supply by the government,the public and private are not divided,and the supply content is expanded,gradually forming the characteristics of urban-rural dual structure.After the reform and opening up,China's rural economic system,state-owned enterprise management system and financial system gradually stabilized after a certain period of exploration.After the tax distribution reform,the positioning and functions of the government became clearer,and the idea of enterprises as independent subjects in the market economy was clarified.The government gradually withdrew from the economic construction and transformed from economic participants into managers,service providers and supervisors.The government began to pay more attention to the system construction of the market economy,the supply of basic public services and the equalization development,and gradually established the multiple supply model of public goods and services.The supply scope of public goods gradually returned to rationality,and the regional differences of public goods formed the trend of first expanding and then shrinking.After the reform and opening up,China was unable to meet the needs of residents in many areas of public goods.Under the guidance of foreign investment,China gradually carried out the exploration of PPP mode to provide public goods.With the marketization of public goods supply,the PPP model in our country has entered the phase of the pilot,the government began to try to act as sponsors of the project,the central government began to gradually guide the private capital into the field of public goods,and developed the related system specification and guidance.Although due to the change of financial resources in the process,project support high low,but overall for the comprehensive promotion of later laid the foundation system.Since 2014,PPP has entered the stage of vigorous promotion.Both the central and local governments have started to encourage PPP models,further relax the access of social capital to the supply of public goods,and focus on introducing supporting systems related to PPP.It can be found from the historical evolution of China's public goods supply and PPP model development that with the public goods supply becoming more and more market-oriented,the application of PPP model is gradually expanding.However,the contradiction between the increasing demand for public goods and the transformation of government functions and the limited local financial resources reflects that it is necessary to adopt PPP mode under the constraints of the actual national conditions.Through the descriptive statistical analysis of 11,715 samples,this paper found the following laws in different dimensions: from the perspective of the declaration area,the less developed areas have higher enthusiasm in the declaration of PPP projects and lower project identification rate;PPP projects in economically developed areas have low enthusiasm for declaration and high project identification rate.From the perspective of declaration level,it is found that the higher the level of project declaration,the lower the quantity of declaration and the higher the recognition rate.From the perspective of return mechanism,the higher the expenditure responsibility and risk the government takes,the higher the project landing rate will be.From the analysis of operation mode,the application intention and execution quantity of traditional BOT project are the most;According to the industry analysis of the project,municipal engineering and transportation projects have the largest number of declaration intention and execution.From the demonstration level analysis,the higher the demonstration level,the higher the project landing rate;In terms of the implementation rate of various projects in the eastern,central and western regions,the eastern region is superior to the central region and the western region.These laws show that there is a certain relationship between the declaration willingness and project execution rate of PPP projects and the economic situation,regional differences,industry and operation mechanism.Then,using cross-sectional data of multiple indicators,through the simulation calculation of stepwise regression method,it is found that the declaration willingness of PPP is mainly affected by the financial revenue and the debt balance of local governments,which will cause the reduction of the declared investment of PPP projects;the increase of the debt balance of local governments will cause the increase of the declared investment of PPP projects,which has no significant relationship with the state of public goods It is clear that the main driving force of PPP project declaration in China is financial pressure,not public goods demand.It is found that the project implementation rate of PPP has a significant relationship with the increase of financial revenue,return mechanism,highway mileage and per capita park green area.The larger the increase of financial revenue,the higher the project implementation rate;the greater the government's expenditure responsibility,the more risks it takes,the higher the project implementation rate;the existing level of public goods has a negative impact on the project implementation rate.it is proved that the goal of PPP declaration in China is not to meet the demand of public goods,and the return model of relying on government payment has not changed.This paper analyzes several successful and unsuccessful cases from four aspects: demand measurement of public goods,change of supply concept,effectiveness of supply management and cooperation mechanism.It is found that the measurement of public goods demand is a key link that both the government and social capital attach great importance to.When it is difficult to accurately measure the demand of public goods,the variable contract term provides a better idea of balance,promotes the participants to reach a consensus,and reduces the game between the two parties.The government and the public's attitude towards the adoption of market-oriented supply of public goods will also determine the success of the project.It is necessary to establish a good communication mechanism with the public,change the idea that public goods must be free,and put ourselves in the public's shoes,which will promote the success of the project and achieve a win-win situation among the three parties.The adoption of PPP mode does not mean that the government will completely let go,otherwise it will turn the marketization of public goods into the monopolization of public goods,which requires the government to actively step in and improve the effectiveness of supply management.Only theoretical support and good intentions can not guarantee the success of PPP projects.Cooperation mechanism is a key part of practice,and project participants clearly understand each party's role positioning,responsibilities and obligations,potential risks,expected returns,project flexibility and communication mechanism,which are key factors for the success of PPP projects.And on the basis of absorbing the experience of cases,it summarizes the Enlightenment of cases which are consistent with China's national conditions.Finally,on the basis of PPP theoretical analysis,historical review,empirical analysis and case analysis,the paper puts forward the research conclusion that it is necessary for China to adopt PPP mode to provide public goods;it puts forward policy suggestions from three aspects: changing the traditional concept of public goods supply,accurately grasping the demand for public goods,and optimizing PPP project management.Based on the analysis of the shortcomings of this paper,the research prospect is put forward.