The Relationships between Public-Private Partnership Investments and Economic Growth: Panel Data Analysis

Public private partnership can be defined as the method that countries with limited resources are applying for investments with large budgets. This method is frequently used in sectors such as infrastructure, energy, health and transportation; it enables the public services to be provided with high quality and lower cost, and the limited government budget can be used efficiently. In this method, the knowledge, technological and technical competencies of the private sector are transferred to the public sector. Empirical studies on the effect of public private partnership and economic growth is quite limited in the literature. In this study, the relationships between investment on public private partnership and economic growth has analysed by panel data analysis (panel cointegration) using data from 1990-2013 of 15 OECD countries. The results show that there is a long-term cointegration between public-private partnership investment and economic growth