Research On Technical Efficiency And Influencing Factors Of PPP Projects

The PPI database of the World Bank shows that the number of PPP projects in the infrastructure sector in China has increased from only one project in 1990 to 65 in 2016.In 1990,the amount of PPP projects investment was 1.73 billion U.S.dollars,and in 2016,this amount reached US$ 11.316 billion,there has seen a significant increase in both the number of projects and the amount of investment.With the increase in the amount of investment in PPP projects,the term "efficiency" has also become a concern.The investment efficiency of a PPP project is a key factor that restricts the output of a PPP project.Under the current situation where the PPP model is used extensively,investigating the investment efficiency and influencing factors of the PPP projects has important theoretical and practical significance.From a theoretical point of view,this paper provides a preliminary introduction to the quantitative analysis of the current status of the PPP model,and proposes some new research ideas in this field.From a realistic point of view,this paper is conducive to policy makers'efforts to supplement the PPP according to different regions.The body of this article is divided into five parts.The first part is the introduction,which gives guidance on the research background,research significance,literature review,research problems,research methods and major innovations.The second part is an overview of the PPP.This part reviews the related concepts,main advantages and history of the PPP,and uses the mathematical formula to obtain a more detailed qualitative description of the benefits and the responsibilities of the government and social capital in the PPP.The third part is the theoretical analysis from three aspects.One is to analyze the economic game theory involved in infrastructure construction;the second is to summarize the mainstream methods of infrastructure investment efficiency measurement and compare its advantages and disadvantages and applicability;The third is the impact on the factors that may affect the efficiency of China's PPP project through the existing factors affecting the investment efficiency of PPP projects in the literature,summarizing the influencing factors affecting the investment efficiency of PPP projects in China.The situation assumes theoretical assumptions.The fourth part is the empirical discussion part of this article.This section uses the stochastic frontier model for water infrastructure PPP project data from 2008 to 2014 in China to conduct an empirical analysis.First,the validity of the output function and the technical inefficiency function in the stochastic frontier model are tested.The second is how each input variable affects the output of the PPP project,and how the impact degree is measured.The proportion of the input of each input variable is maintained so that the maximum output of the project can be measured.The last part is the conclusion and prospect of this article.This section summarizes the main points discussed in the previous section,proposes corresponding policy recommendations that are suitable for the development of China's PPP model,and summarizes the shortcomings of the theoretical and empirical studies of the article as well as the direction of follow-up research.This paper uses the stochastic frontier analysis method to construct an effective and reasonable stochastic frontier analysis model to measure the technical efficiency of China's water infrastructure PPP project from 2008 to 2014,and analyzes the environmental factors that affect the technical efficiency of the PPP projects.The stochastic frontier production function shows that the expansion of government and social capital investment will help improve the output of PPP projects,but it is worth noting that the proportion of the government's and social capital's investment in each country has not reached the optimal state.The relative investment in government capital is insufficient while social capital investment is relatively high.In addition,three empirical conclusions can be drawn from the empirical results of the technical inefficiency model.First,the level of regional economic development has promoted the technical efficiency of China's infrastructure PPP projects,and fiscal decentralization has also improved the technical efficiency of PPP projects.This shows that the construction of infrastructure PPP projects requires good financial guarantees.Second,with respect to the institutional environment,the smaller the degree of local government intervention in the market is,the better the level of development of intermediary organizations and the improvement of the legal system.And the higher the degree of completeness of factor markets is,the more conducive they will be to raising the level of technical efficiency in the region.However,the non-state-owned economy has not played its due role in improving the technical efficiency of China's infrastructure PPP projects,which shows that this part is still dominated by the state-owned economy.From the perspective of the specific parameters of the PPP project,in the current PPP project in China,the project duration and social capital ratio have a negative impact on the improvement of technical efficiency,which further shows that the proportion of social capital in China's current PPP project has been too high and the duration of the project is too long.