The Public-Private Partnerships In China And The Relationship Between Urbanization And Government Debt

In resent year, The Chinese government has shown its positive attitude to stimulate Public-Private Partnerships (PPP). As the Chinese government needs to seek alternative financing resources to invest on public service, Public-Private Partnerships has attention in China. In order to achieve the sustainable economic growth, public infrastructure investment is necessary. As the fiscal reform is in progress and government debt burden is increased, the government needs to seek another funding resource. Public-Private Partnerships is meaningful procurement to both the government and the private sector.Due to Public-Private Partnerships, the government enjoys the reduction of fiscal burden and provides better facilities and services to the public, while the private sector is able to share the risk with the government and enjoys the long-term revenue and gets new business opportunities. The rationales of Public-Private Partnerships are similar to both China and Korea. But there are still risks and challenges under Public-Private Partnerships.Most of existing researches are related to characteristics of Public-Private Partnerships and, evaluation of investment value, and risk identification. In this study I explore the general concept of Public-Private Partnerships, Public-Private Partnerships in China and Korea, and compare them. I conduct the test that what the determinants of Public-Private Partnerships investments in China are. The empirical study provides evidence, which is significant determinants of Public-Private Partnerships investment; the size of the market and economic system; private investment; tax burden; and urbanization.