Transferal of Responsibilities of PPP European Equity Markets: Dependency Analysis

Abstract

When ensuring the growth and sustainability of infrastructure projects, a significant amount of capital must be available. For this reason, the public sector needs to seek new financing methods, and the private sector is willing to contribute to this financial muscle through local and foreign Equity Provider participation. Nevertheless, it is necessary to outline the risk accurately to guarantee private participation. Furthermore, many scholars have shown that foreign Equity Providers’ (EP) participation can bring new ideas and expertise to develop local markets. The EPs seek to mitigate financial risks by collaborative ventures. The influence, holding, and participation of foreign and local EPs in local industries can be understood through Cross-Holding Matrixes (CHM) and visualized using network diagrams. This research uses CHM to understand the interdependence between infrastructure investments in some European countries (Germany, France, Netherlands, Italy, the UK, Spain, Austria, Portugal, and Belgium). The results show that Spain, France, and the UK position themselves within the road infrastructure projects, while the latter appears as the leader for the social infrastructure sector.