Influencing Factors and Spatial Spillover Effect of Infrastructure PPP Financing Model

At the city level, factors that affect the financing amount of infrastructure PPP projects are diverse. Based on the panel data of prefecture level cities from 2015 to 2017, this paper makes an empirical analysis on the influencing factors of Infrastructure PPP financing in China by using the spatial regression model and verifies the spatial spillover effect of the financing amount of PPP projects. The results show that the Spatial Error Model has a better fitting effect on analyzing the influencing factors of the financing amount of PPP projects compared with the mixed OLS regression model. The financing amount of PPP project in China has a significant positive spatial spillover effect at the city level. The amount of PPP project investment in a city will be affected by the amount of PPP project investment in neighboring cities. Factors including local government financial situation, GDP, fixed asset investment and population density have significant correlation with the financing amount of PPP project, and the impact varies in different regions. In terms of local government's financial situation, there is a significant positive correlation between the financing amount of PPP project in the Middle East of China. The larger the fiscal gap of local governments, the more inclined they are to use PPP mode for infrastructure financing. While, there is no significant correlation between these factors and the financing amount of PPP project in the West.