Research On The Constitutive Factors Of Adverse Selection Of PPP Project In China

With the rapid development of the domestic economy and the deepening of supply-side reform,the advantages of PPP mode have gradually emerged and have been taken seriously at the national level.Since the third plenary session of the 18 th central committee of the 18 th CPC central committee,the country has begun to comprehensively promote the construction of PPP projects,and apply the PPP model to the development of government governance capacity and the modernization of the country.The PPP model as the government-social cooperative financing mode,can effectively promote the public service and public products supply,have a share the government's fiscal pressure,meet the demand of the public basic triple advantages and improve the efficiency of social investment management.In this context,China needs a higher level of PPP project construction capability to support this condition.However,from the current situation of PPP project construction in China,the PPP project has achieved certain achievements but also have some practical problems.From the current PPP construction related to municipal engineering,agricultural water conservancy,social people's livelihood and other fields,where all exists PPP adverse selection problem.The adverse selection problem caused in the PPP project operators income reduce,project funding participation enthusiasm,cause government credit crisis,if the adverse selection problem not in time to the government of the PPP project control,will lead to the failure of the project.As a decision-making process,the government adverse selection in PPP project has its constituent elements.On the basis of the rent-seeking theory,information asymmetry theory,transaction cost theory as the theoretical basis,the PPP projects in China are put forward government adverse selection factors are profit-driven,information contrast factor,volatility risk factors.Respectively from the factors of adverse selection under the condition of government forms,various factors on the causes of the adverse selection in the PPP projects,based on the reasons and put forward the solution for every factors,in order to achieve to the purpose of the PPP project government control the adverse selection problem.This paper provides a practical solution to the problem of adverse selection of specific government in PPP project construction,and promotes the scientificity and practicality of PPP project construction.It can provide some reference meaning for the optimization of the role of government entities in PPP project construction.