In this paper, we investigate whether Public Private Partnerships (PPPs), with readily pledgable Government assets, reduce the underinvestment problems faced by private sector firms in emerging markets. We analyse investment-cash flow sensitivity and its determinants for the partnering private...

In this paper, we investigate whether Public Private Partnerships (PPPs), with readily pledgable Government assets, reduce the underinvestment problems faced by private sector firms in emerging markets. We analyse investment-cash flow sensitivity and its determinants for the partnering private...

Using 169 and 215 Public Private Partnerships (PPP) projects from China (1986-2012) and India (1991-2013), respectively, we find that politically connected PPP firms, on average have higher access to bank loans compared to competing and matched non-PPP firms. Our further analysis reveals that...