Official Tenure, Fiscal Capacity, and PPP Withdrawal of Local Governments: Evidence from China’s PPP Project Platform

PPP withdrawal policy is helpful to reduce over-investment in PPPs leading sustainable development. However, little known about the role of local governments on PPPs. Using Project Platform Data, a unique dataset, this article able quantify by coding for first time. This research tests influencing factors at municipal level, according centralized late 2017 as an exogenous treatment. Based theory rapid economic growth, study develops two-pillar framework under combination political man and assumptions explain governments. The results show that both official tenure fiscal capacity are significant factors. In addition, debt partially mediates mayor withdrawal, land revenue growth can hinder negative relationship between withdrawal. It implies strongly influenced leaders’ personal promotion incentive group members’ collective benefit. Thus, our findings indicate effective instrument prevent Moreover, match should be formed development planning investment plans promote investment.