The multi-faceted impact of host country risk on the success of private participation in infrastructure projects

Purpose: This paper aims to investigate the multi-faceted impact of host country risks on the success of private participation in infrastructure projects. The authors make a distinction between exogenous and endogenous risks, differentiating those that are completely beyond the control of the firm from those in which firms might exert some degree of influence to reduce the negative repercussions. Design/methodology/approach: Drawing on logistic regression analyses, the authors analyze a sample of 10,350 private participation in infrastructure projects in 126 countries from 1997 to 2014. Findings: The authors find that higher levels of exogenous risk are associated with a lower probability of project success, whereas they find no significant effect for endogenous risk. Originality/value: By pointing to this differential effect, this study makes a contribution to the current debate in the literature on private participation projects.