📄 Abstract
This study establishes a dynamic empirical framework to evaluate the structural, causal, and risk-mitigating impacts of distinct Public-Private Partnership (PPP) financing mechanisms—specifically Viability Gap Funding (VGF), Minimum Revenue Guarantees (MRG), Concessional Subordinated Debt (CSD), and Availability Payment Hybrids (APH)—on private capital mobilization in tourism services infrastructure. Addressing dynamic persistence, unobserved cross-sectional heterogeneity, and endogenous concession assignment, the empirical inquiry applies a two-step System Generalized Method of Moments (System GMM) and Panel Autoregressive Distributed Lag (P-ARDL) estimation framework to a balanced panel dataset spanning 2011–2025 across 42 emerging and tourism-developing economies. The econometric findings demonstrate a statistically robust, non-linear relationship between PPP sovereign co-financing structures and private investment response. Specifically, direct capital-stage Viability Gap Funding exhibits an immediate, potent crowding-in effect (β=0.412,p<0.001), whereas Minimum Revenue Guarantees yield significant long-run private investment elasticity (β=0.584,p<0.001) only after regional contract enforceability and institutional governance surpass critical threshold levels. Indiscriminate, uncapped revenue guarantees in weak regulatory jurisdictions are found to generate moral hazard and severe fiscal contingent liabilities without securing commensurate service quality. These findings bridge a critical gap in project finance and tourism economics by establishing an optimal, risk-calibrated PPP financing architecture that optimizes private capital leverage while containing sovereign fiscal exposure in emerging service markets.
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📚 How to Cite:
Abdurazakov Shavkatjon Shokirdjanovich , EVALUATING PUBLIC PRIVATE PARTNERSHIP FINANCING MECHANISMS FOR STIMULATING INVESTMENT IN TOURISM SERVICES , Volume 14 , Issue 8, August 2026, International Journal of Asian Economic Light (JAEL) , Pages: 38 - 47 , DOI: https://doi.org/10.36713/epra31338