Role of collaborative governance in unlocking private investment in sustainable projects

This research paper investigates the role of collaborative governance in attracting private investment in sustainable projects in 11 low and lower-middle-income Asian countries from 2000 to 2020. Using the cross-sectional autoregressive distributed lag (CS-ARDL) methodology, the study finds a positive correlation between a good governance index and private investment in green projects, with a 1% increase in the index leading to a 0.34% short-term and 0.64% long-term increase in private investment. Economic stability is also crucial; increased uncertainty significantly reduces private participation. GDP growth and the number of SMEs also positively influence investment. The study suggests policy recommendations such as e-government services, ICT-driven digital transformation, sustainable corporate governance, and green bonds to further encourage private sector engagement. Future research should explore the pandemic's impact and the effectiveness of public-private partnerships.

Yiran Bai, Chunxian Lu, Ximiao Dong, Yinan Li