For many lower and lower-middle-income countries, provisions of infrastructure often present significant advanced costs that they simply cannot afford. In turn, many governments procure private sector investment in the form of public-private partnerships to address the ever-growing need for public goods provisions. Previous works of literature exist on the determinants of public-private partnership projects and their investment, but largely absent has been the factor of social climate, especially how cultural divisions among the general population can affect these endeavors. This study instruments governance with fractionalization to estimate its effect on public-private partnerships.
