Evaluating the effects of public private partnership investment in energy on labor market dynamics and poverty alleviation in BRICS countries

Abstract The availability of efficient and sufficient energy infrastructure has a vital role in driving economic growth and development. In view of this, it is essential to ensure more investment in energy infrastructure. This study investigates the impact of public–private partnership (PPP) investm...

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Main Authors: Mosab I. Tabash, Umar Farooq, Ștefan Cristian Gherghina, Manishkumar Varma, Abdullah A. Aljughaiman
Format: Article
Language:English
Published: Springer 2025-07-01
Series:Discover Sustainability
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Online Access:https://doi.org/10.1007/s43621-025-01494-1
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Summary:Abstract The availability of efficient and sufficient energy infrastructure has a vital role in driving economic growth and development. In view of this, it is essential to ensure more investment in energy infrastructure. This study investigates the impact of public–private partnership (PPP) investments in the energy sector on poverty and unemployment rates in BRICS countries over a 24-year period. Employing the CS-ARDL model and validating the results using FMOLS, the analysis reveals that PPP investments in energy significantly reduce both poverty and unemployment in the long run. Furthermore, control variables such as foreign direct investment, control of corruption, and gross fixed capital formation also contribute to reducing poverty and unemployment. These findings remain robust across model specifications. The study provides important policy insights, suggesting that enhancing PPP investments in energy, alongside improved governance and strategic public spending can yield significant socio-economic benefits by reducing poverty and unemployment. This research contributes to the literature by offering empirical evidence on the socio-economic benefits of energy-focused PPPs.
ISSN:2662-9984