Research Article

Impact of Public Private Partnerships Infrastructure Investment in Transport on Foreign Direct Investment Inflows

Volume: 7 Number: 2 December 30, 2025
TR EN

Impact of Public Private Partnerships Infrastructure Investment in Transport on Foreign Direct Investment Inflows

Abstract

The aim of this study is to investigate the role of public-private partnerships (PPPs) investment in transport on foreign direct investment (FDI) inflows in developing countries. The PPP method is a preferred financing method as it shortens the project period and acts as a solution to financial difficulties faced by the public sector due to insufficient funds. Transport infrastructure is a type of infrastructure that serves regional development and allows uninterrupted operation of supply chains. The fixed effects model is used to analyze the data. According to the empirical results, the impact of transport infrastructure financed by PPP on FDI inflows is significant and positive. Based on this result, it can be concluded that the PPP project financing model can be used as an alternative financing model in transportation projects to attract FDI; however, one should evaluate the costs and benefits of such projects carefully.

Keywords

References

  1. 1915 Çanakkale. (n.d.). Investors. Çanakkale Motorway and Bridge Construction Investment and Operation Inc. Retrieved from https://www.1915canakkale.com/en-us/corporate/investors
  2. Abdioğlu, N., Biniş, M. and Arslan, M. (2016). The effect of corporate tax rate on foreign direct investment: A panel study for OECD countries. Ege Academic Review, 16(4): 599-610.
  3. Aschauer, D.A. (1990). Why is infrastructure important? (Federal Reserve Bank of Boston Conference Series No. 34). Retrieved from http://www.bostonfed.org/economic/conf/conf34/conf34b.pdf
  4. Atioğlu, E. and Şahin, O.N. (2022). Examining the effect of transport infrastructure on attracting foreign investment. Hitit Journal of Social Sciences, 15(1): 85-99.
  5. Augenblick, M. and Custer, B.S., Jr. (1990). The build, operate, and transfer (“BOT”) approach to infrastructure projects in developing countries (The World Bank Policy, Research, and External Affairs Working Paper No. 498). Retrieved from https://documents1.worldbank.org/curated/en/919341468766792679/pdf/multi-page.pdf
  6. Badada, B., Delina, G., Baiqing, S. and Krishnaraj, R. (2023). Economic impact of transport infrastructure in Ethiopia: The role of foreign direct investment. Sage Open, 13(1): 1-12.
  7. Bhargava, A., Franzini, L. and Narendranathan, W. (1982). Serial correlation and the fixed effects model. Review of Economic Studies, 49: 533-549.
  8. Chakrabarti, A. (2001). The determinants of foreign direct investments: Sensitivity analyses of cross‐country regressions. Kyklos, 54(1): 89–114.

Details

Primary Language

English

Subjects

Panel Data Analysis, International Finance, Transport Economics, Investment and Portfolio Management

Journal Section

Research Article

Publication Date

December 30, 2025

Submission Date

November 3, 2025

Acceptance Date

December 5, 2025

Published in Issue

Year 2025 Volume: 7 Number: 2

APA
Culfa, B., & Topçu, G. (2025). Impact of Public Private Partnerships Infrastructure Investment in Transport on Foreign Direct Investment Inflows. Ekonomi Ve Finansal Araştırmalar Dergisi, 7(2), 147-166. https://doi.org/10.56668/jefr.1816785
AMA
1.Culfa B, Topçu G. Impact of Public Private Partnerships Infrastructure Investment in Transport on Foreign Direct Investment Inflows. JEFR Journal. 2025;7(2):147-166. doi:10.56668/jefr.1816785
Chicago
Culfa, Bedirhan, and Güneş Topçu. 2025. “Impact of Public Private Partnerships Infrastructure Investment in Transport on Foreign Direct Investment Inflows”. Ekonomi Ve Finansal Araştırmalar Dergisi 7 (2): 147-66. https://doi.org/10.56668/jefr.1816785.
EndNote
Culfa B, Topçu G (December 1, 2025) Impact of Public Private Partnerships Infrastructure Investment in Transport on Foreign Direct Investment Inflows. Ekonomi ve Finansal Araştırmalar Dergisi 7 2 147–166.
IEEE
[1]B. Culfa and G. Topçu, “Impact of Public Private Partnerships Infrastructure Investment in Transport on Foreign Direct Investment Inflows”, JEFR Journal, vol. 7, no. 2, pp. 147–166, Dec. 2025, doi: 10.56668/jefr.1816785.
ISNAD
Culfa, Bedirhan - Topçu, Güneş. “Impact of Public Private Partnerships Infrastructure Investment in Transport on Foreign Direct Investment Inflows”. Ekonomi ve Finansal Araştırmalar Dergisi 7/2 (December 1, 2025): 147-166. https://doi.org/10.56668/jefr.1816785.
JAMA
1.Culfa B, Topçu G. Impact of Public Private Partnerships Infrastructure Investment in Transport on Foreign Direct Investment Inflows. JEFR Journal. 2025;7:147–166.
MLA
Culfa, Bedirhan, and Güneş Topçu. “Impact of Public Private Partnerships Infrastructure Investment in Transport on Foreign Direct Investment Inflows”. Ekonomi Ve Finansal Araştırmalar Dergisi, vol. 7, no. 2, Dec. 2025, pp. 147-66, doi:10.56668/jefr.1816785.
Vancouver
1.Bedirhan Culfa, Güneş Topçu. Impact of Public Private Partnerships Infrastructure Investment in Transport on Foreign Direct Investment Inflows. JEFR Journal. 2025 Dec. 1;7(2):147-66. doi:10.56668/jefr.1816785