| Abstract [eng] |
The main purpose of this master thesis is to identify potential financial liabilities of a public entity due to the termination of public private partnership agreements and to assess the impact of investments in these agreements on the country's economic growth. The work consists of four main parts: the literature review, the research methodology and its results, and conclusions and recommendations. Literature analysis reviews the concept of public private partnership and its forms, risks associated with public private partnership agreements, as well as evaluates other authors’ insights on possible impacts on public finances in terms of agreement termination and impact investments of such agreements have on economic growth. After the literature analysis the research design was set up, research methods and indicators were selected. The research design is constructed of two parts. Firstly, the qualitative case study is performed, which is based on a method for systematising primary data collected from municipalities with active PPP contracts, interpreting groupings and establishing structural links. The following is a quantitative study based on the construction of a regression equation model to determine the impact of PPPs on economic growth. The performed research revealed that the total portfolio of PPPs in Lithuania is low and accounts for ~0,72% Lithuania’s GDP. Assessing the expected liabilities of public private partnerships in the event of termination of contracts, no risks to the sustainability of public finances have been identified, as the maximum possible liabilities to date would be only ~ 0.4% of 2021 country’s GDP. Moreover, the regression analysis showed that no statistically significant relationship between economic growth and public private partnership investment was identified. The main reasons for this are the reliability and availability of PPPs data. The conclusions and recommendations summarize the main concepts of literature analysis as well as the results of the performed research. The author believes that the results of the study could give useful guidelines to the governmental institutions which are engaged in public private partnerships to evaluate, monitor and control this part of contingent liabilities. |
