Research on the Influencing Factors of the Effective Vitality of the Whole Life Cycle of PPP Projects in China based on Tobit model

The PPP model is a new public governance model for financial investment and financing of infrastructure in the new era, but cases abound in which PPP projects are unable to maintain the continuity of returns throughout their life cycle and ultimately have to be terminated prematurely due to the reality of constraints, such as high transaction costs and insufficient financial transparency, which contribute to the landing of the projects. Based on the panel data of 31 provinces and municipalities directly under the central government from 2015-2022, the paper empirically analyzes the influencing factors affecting the investment and transaction of PPP projects using the panel Tobit model. Three core explanatory variables, namely, government debt ratio, degree of financial sophistication and government financial transparency index, are selected from government financial burden, financial environment and government credibility, respectively, based on which the squared term of government debt ratio is added to explore the nonlinear relationship, and the interaction term of government debt ratio and degree of financial sophistication is added to explore the moderating effect between the two. The results show that there is a significant positive correlation between the transaction of the PPP project and the fiscal transparency. The transaction of PPP projects has a significant positive correlation with the degree of financial development. The results of the western region are relatively significant, and the results of the east and center are not significant, which proves that there is obvious regional heterogeneity.