Policy uncertainty and firm-level investment: evidence from public-private partnership market in China

This paper focuses on the subfield of Public-Private Partnership (PPP), and explores the relationship between policy uncertainty and firm-level investment. Based on the analysis of 905 central-level documents, one novel contribution of this paper is to construct an index of PPP policy uncertainty. W...

Full description

Saved in:
Bibliographic Details
Published in:Applied economics letters 2022-05, Vol.29 (8), p.669-675
Main Authors: Qin, Shikun, Luo, Weijie, Wang, Yaling
Format: Article
Language:English
Subjects:
Central government
Economic analysis
Economic theory
Economics
firm investment
Gambling
Government agencies
Investments
policy documents
policy uncertainty
Public private partnerships
Public-Private Partnership
Risk management
Uncertainty
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper focuses on the subfield of Public-Private Partnership (PPP), and explores the relationship between policy uncertainty and firm-level investment. Based on the analysis of 905 central-level documents, one novel contribution of this paper is to construct an index of PPP policy uncertainty. We find evidence supporting that the gambling between central government departments is the main cause of policy uncertainty, which further leads to less investment by firms. Compared with other traditional indexes, the construction based upon policy text sheds light on risk management.
ISSN:1350-4851
1466-4291
DOI:10.1080/13504851.2021.1883524