The Effect of Institutional Factors on Public-Private Partnership Success in Ports

Port public-private partnerships (PPPs) are considered to be an important emerging mechanism for port development and improvement in port performance especially for developing countries. This paper investigates for the first time the effect of institutional factors in the success of port’s PPPs, declined as attractiveness of the PPP project for private bidders and market competitiveness of the facility. Using a large sample of ports and institutional indicators, i.e. world governance and doing business indicators as key independent variables, the empirical investigation finds that ‘voice and accountability’, ‘regulatory quality’ and ‘ease of doing business’ are important determinants of port PPP success and may ultimately contribute to port development and economic growth. The results are consistent with and add to the theoretical literature whereas practical implications for port authorities, managers and investors are discussed.