The Role of Public Private Partnership Projects for Reducing Inequality Reality or Fiction?

Rapid economic growth of developing countries, due to urbanisation and industrialisation, have led them to resort to Public Private Partnerships (PPPs) to provide infrastructure. Although previous literature has analysed the effect of infrastructure projects from PPPs with respect to productivity, growth, and efficiency (among others), evidence is lacking in this respect. To fill this void, this study analyses the effect of PPPs on income inequality in developing countries. For that, we use a sample of 38 low- and middle- income countries over the period 2000-2018, our findings suggest that inequality has not been resolved with PPP projects; by contract, income inequality has increased in countries that have developed PPP projects to a greater extent