Political Risk, Legal Protection and Public-Private Partnerships

Speaker: Prof. Xin CHEN

Prof. Xin CHEN, Assistant Professor, Sun Yat-sen University, China

Xin Chen is Assistant Professor in the School of Government at Sun Yat-sen University, China. His research interests include public budgeting and finance, local governance and organizational performance. His research has been published in Journal of Public Administration Research and Theory, Public Management Review, and American Review of Public Administration, National Tax Journal, among others.

Abstract:

The importance of an impartial legal system in ensuring contract enforcement and protecting private property has been widely recognized as a crucial factor for creating robust local economic environments. This study posits that such a system enhances the private sector’s willingness to collaborate with local governments in public service provision by insulating local judges from the interference of local officials. We evaluate this assertion using China’s local judicial reform in 2014 as a case study. This reform centralized control of local courts and curbed meddling by city officials. We find a significant increase in Public-Private Partnerships (PPP) investment and reduction in delays in project construction works, particularly when the government pledges substantial funding responsibility. Notably, these changes predominantly originate from non-state-owned enterprises and firms outside the pilot prefecture city. Additionally, the reform appears to favor private partners in PPP dispute lawsuits. These findings suggest that centralizing local courts boosts private investors’ confidence in partnering with local governments by limiting local government interference in the judicial system.

Date: 25/04/2025 (Friday)

Time: 17:00-18:30

Venue: E21B-G002

Language: English