Demonstration Effect Theory: A Theoretical Framework of Regulating PPP Reform
Fu-guo Cao,
De-yun Zhen,
Ke Gao,
Xiao Feng,
Ping Ye
Issue:
Volume 6, Issue 2, April 2017
Pages:
24-29
Received:
6 June 2017
Published:
6 June 2017
Abstract: PPP (public private partnership) is not only a world trend, but also a Chinese story. Without the guidance of demonstration effect theory, it is hard to interpret the success of PPP in China. However, the lack of research on the demonstration effect theory and the basic logic of explaining the demonstration effect to promote government governance in the background of PPP and supply side reform. This study finds the model promotes the governance of the PPP market mainly through four logical paths, such as solving externalities, government increasing credit, contractual control rights and supplying high-quality information lists. And based on these conclusions, the government should be committed to protecting and supporting enterprises, supplying free high-quality project information, establishing a long-term mechanism to guide the social capital to continuously enter the market.
Abstract: PPP (public private partnership) is not only a world trend, but also a Chinese story. Without the guidance of demonstration effect theory, it is hard to interpret the success of PPP in China. However, the lack of research on the demonstration effect theory and the basic logic of explaining the demonstration effect to promote government governance i...
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