The restructuring of a state is crucial for promoting human development. For this reason, public-private partnerships (PPPs), the so-called "fourth revolution" in reinventing the state, have become a global strategy of choice. Yet, existing studies on PPPs mainly analyze their effect on growth or inequality, not human development. This article uses data from the human development index (HDI) database to investigate the impact of PPP projects on human development. With the increasing scale of public infrastructure investments and the need to improve public services, it is necessary to examine whether PPPs are justified in improving social welfare. We conducted the analysis for all low- and middle-income countries using propensity score matching (PSM) and multivariate analysis. Additionally, we present the HDI predictions. We believe that assessing the impact of public-private cooperation on increasing social welfare, reducing social exclusion, and implementing investments with a robust social impact is essential. Overall, we found a statistically significant effect of PPPs on human development, demonstrating that the growing scale of PPP investments in low- and middle-income countries enhances their HDI.

Peer reviewed