Risk Misallocation in Public-Private Partnership Projects in China

Yongjian Ke, Shou Qing Wang, Ping Chuen Chan

Research output: Journal article publicationJournal articleAcademic researchpeer-review

28 Citations (Scopus)

Abstract

This article attempts to compare the preferred and actual risk allocation and then to evaluate the impact of risk misallocation (if any) on project performance. The results show a significantly negative relationship between project performance and risk misallocation. The smaller the degree of risk misallocation was, the more successful the project would be. One group of three risks (including "Corruption," "Government's intervention," and "Government's reliability") and the other group of three risks (including "Approval and permit," "Immature juristic system," and "Land acquisition") were found to contribute considerably to the prediction of project performance. This article provides information on the impact of risk misallocation on project performance in China's public-private partnership (PPP) projects. To enter and perform well in China's PPP market, private firms should pay particular attention to the identified risks.
Original languageEnglish
Pages (from-to)438-460
Number of pages23
JournalInternational Public Management Journal
Volume16
Issue number3
DOIs
Publication statusPublished - 1 Jul 2013

ASJC Scopus subject areas

  • Business and International Management
  • Public Administration

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