Macroeconomics Indicator, Institutional Quality, and Public Private Partnership: A Case of Indonesia
Dublin Core
Title
Macroeconomics Indicator, Institutional Quality, and Public Private Partnership: A Case of Indonesia
Subject
Infrastructure, Institutional, Public Private Partnership, Private Participation
Description
Objective: This study aims to investigate the effect of macroeconomic conditions (inflation and GDP growth) and institutional quality (control of corruption, stability politics, and voice and accountability) on private participation in PPP infrastructure projects in Indonesia as proxied by a total investment of PPP project.
Design/Methods/Approach: This study utilizes annual data of Indonesia’s country-level variables from 2003 to 2019. The data sources are obtained from the World Bank Database (WGI, WDI, and PPI). In addition, this study employs regression analysis to test the hypothesis.
Findings: The results show that inflation, GDP growth, and stability politic have no significant effect on the total investment of the PPP in Indonesia. Meanwhile, control of corruption has a significant positive effect on the total investment of PPP, and voice and accountability have a significant negative effect on the total investment of PPP projects in Indonesia. Originality: This study differs from previous research since variables such as inflation, GDP growth, political stability, corruption control, voice, and accountability have never been used in the Indonesian context.
Practical/Policy implication (optional): These findings are likely to imply government to improve corruption control so that private participation in PPP projects increases and increasingly involves citizens' participation in PPP projects.
Design/Methods/Approach: This study utilizes annual data of Indonesia’s country-level variables from 2003 to 2019. The data sources are obtained from the World Bank Database (WGI, WDI, and PPI). In addition, this study employs regression analysis to test the hypothesis.
Findings: The results show that inflation, GDP growth, and stability politic have no significant effect on the total investment of the PPP in Indonesia. Meanwhile, control of corruption has a significant positive effect on the total investment of PPP, and voice and accountability have a significant negative effect on the total investment of PPP projects in Indonesia. Originality: This study differs from previous research since variables such as inflation, GDP growth, political stability, corruption control, voice, and accountability have never been used in the Indonesian context.
Practical/Policy implication (optional): These findings are likely to imply government to improve corruption control so that private participation in PPP projects increases and increasingly involves citizens' participation in PPP projects.
Creator
Iklima Devi Grafitanti1, *Roby Syaiful Ubed2
Source
https://e-journal.unair.ac.id/jmtt
Date
July 18, 2022
Contributor
PERI IRAWAN
Format
PDF
Language
ENGLISH
Type
TEXT
Files
Collection
Citation
Iklima Devi Grafitanti1, *Roby Syaiful Ubed2, “Macroeconomics Indicator, Institutional Quality, and Public Private Partnership: A Case of Indonesia,” Repository Horizon University Indonesia, accessed March 14, 2025, https://repository.horizon.ac.id/items/show/5383.