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Journal of Governance and Regulation / Volume 14, Issue 1, 2025
29
THE REGULATION OF PUBLIC-PRIVATE
PARTNERSHIPS IN THE ECONOMY:
A CASE STUDY OF THE EMERGING
MARKET
Amjad Salem Younes Qwader *, Bader Mustafa Mahmoud Al Sharif **
* Сorresponding author, Department of Business Economics, College of Business, Tafila Technical University, Tafila, Jordan
Contact details: Department of Business Economics, College of Business, Tafila Technical University, 66110/179 Tafila, Jordan
(a.alqwader@ttu.edu.jo)
** Department of Business Economics, College of Business, Tafila Technical University, Tafila, Jordan (bader_alsharif@ttu.edu.jo)
Abstract
How to cite this paper: Qwader, A. S. Y., &
Al Sharif, B. M. M. (2025). The regulation
of public-private partnerships in
the economy: A case study of the emerging
market. Journal of Governance & Regulation,
14(1), 29–37.
https://doi.org/10.22495/jgrv14i1art 3
Copyright © 2025 The Authors
This work is licensed under a Creativ e
Commons Attribution 4.0 International
License (CC BY 4.0).
https://creativecommons.org/licenses/by/
4.0/
ISSN Print: 2220-9352
ISSN Online: 2306-6784
Received: 28.03.2024
Accepted: 31.12.2024
JEL Classification: H49, H54, O47, O50
DOI: 10.22495/jgrv14i1art3
The study investigated the impact of public-private partnerships
(PPP) sectors and their dimensions (legal legislation, political
challenges, financial challenges, administrative challenges, and
weak public awareness) on economic growth in Jordan. The study
used a descriptive-analytical approach, distributing a questionnaire
to a hundred individuals, including administrative and financial
managers of private companies involved in PPP. Ninety-five
responses were collected and analyzed using a Statistical Package
for the Social Sciences (SPSS) to estimate simple and multiple linear
regression parameters, providing insights into the nature of PPP
sectors. The study found that PPP sectors are essential for
economic growth, leveraging the private sector’s experience and
competencies. It also emphasized the need for more support and
incentives for the private sector and the establishment of true PPP
sectors through joint projects between the public and private
sectors. These findings are crucial for policymakers and
stakeholders involved in economic development. Understanding
the role of PPP sectors can lead to more effective policies
and strategies to promote economic growth and enhance
the collaboration between the public and private sectors.
As a result, the study recommended providing more support and
incentives to the private sector, recognizing its active role in
the economy.
Keywords: Public Sector, Private Sector, Partnerships, Economy, Jordan
Authors’ individual contribution: Conceptualization — B.M.M.A.S.;
Methodology — B.M.M.A.S.; Formal Analysis — A.S.Y.Q. and
B.M.M.A.S.; Investigation — A.S.Y.Q. and B.M.M.A.S.; Writing —
A.S.Y.Q. and B.M.M.A.S.; Visualization — A.S.Y.Q. and B.M.M.A.S.;
Supervision — B.M.M.A.S.; Project Administration — B.M.M.A.S.;
Funding Acquisition — A.S.Y.Q. and B.M.M.A.S.
Declaration of conflicting interests: The Authors declare that there is no
conflict of interest.
1. INTRODUCTION
The private sector is considered a fundamental
element in driving economic growth in various
countries around the world. Due to its effective
financial and managerial capabilities, many
countries seek to enhance the participation of
the private sector in economic projects to achieve
development (Rashed & Shah, 2021). Based on this,
Jordan has recognized the importance of the private
sector in achieving economic development and has
been keen on effectively involving it in various
Journal of Governance and Regulation / Volume 14, Issue 1, 2025
30
sectors. Its efforts have focused on stimulating local
and foreign investment, creating job opportunities,
and enhancing the volume of national exports
(Al Sharif, 2023).
Public-private partnerships (PPP) are defined as
cooperation between a government institution and
a private sector company, with the aim of financing
and operating projects. In this partnership,
the government institution provides a suitable
environment for investment and establishes
productive projects by the private sector, contributing
to improving the economic situation and reducing
unemployment rates (Essa, 2018). The significant
importance of this partnership lies in complementary
projects, as this partnership is considered
the optimal solution to address the problems faced
by countries in implementing infrastructure projects
such as roads, water, electricity, communications,
and public transport networks by the public sector.
In the case of such non-profitable projects,
the private sector is required to study the potential
negative impacts of their implementation before
participating in them (Febbianti et al., 2024).
The PPP is a fruitful approach that entails
several tangible benefits. This partnership contributes
to achieving many important advantages, including
enhancing transparency, reducing corruption risks,
achieving strong economic growth, and reducing
unemployment rates (Al Sharif et al., 2023). Additionally,
the partnership contributes to achieving the highest
levels of efficiency in production processes and
exchanging experiences between the sectors, leading
to improving the performance of production
operations and achieving them better and more
efficiently (Zwati & Kouider, 2018).
The study’s theoretical importance lies in its
review of the literature and previous studies on PPP,
understanding the role of PPP in the Jordanian
economy and proposing recommendations for
enhancing this partnership. It also contributes to
Arab literature by linking these variables and lays
the groundwork for future research.
Practically, the study provides valuable
information about the level of PPP in Jordan. It also
offers insights on improving economic growth and
employment by strengthening this partnership,
contributing to the development of both sectors and
economic growth in Jordan.
This study aims to shed light on
the importance of the public and private sectors and
the role of each in economic development and to
identify the role that each sector plays in achieving
the desired development through its impact on
increasing gross domestic product (GDP). This study
employs a descriptive-analytical method, using
specialized research to explore the concept, types,
and significance of partnerships, as well as
the reasons for their adoption. It examines
partnership dimensions (legislative, political,
financial, administrative challenges, and public
awareness) as tools for economic growth. Data
is collected through questionnaires to describe
variables and test study hypotheses. The Jordanian
economy suffers from structural imbalances
resulting from the inefficiency of the public sector in
providing sufficient income to achieve optimal
utilization of available economic resources. Most of
Jordan’s infrastructure projects rely mainly on
external aid and grants, hence the need for PPP to
address imbalances and improve the economy.
In light of this, the study raises the following
question:
RQ: To what extent does the partnership
between the public and private sectors contribute to
improving growth in the national economy?
The structure of this paper is as follows.
Section 2 reviews the relevant literature. Section 3
outlines the research design, data collection
methods, and analysis techniques used. Sections 4
describe and discuss the results and, finally,
Section 5 presents the conclusion.
2. LITERATURE REVIEW AND HYPOTHESES DESIGN
2.1. Theoretical framework
The concept of PPP involves the collaboration
between public and private sectors, utilizing their
resources to achieve economic and social goals for
the benefit of society, enabling it to keep pace with
contemporary developments (Al-Rashid, 2007).
Hamada (2014) defines PPP as a long-term contract
where the private sector handles most risks and
management for executing projects or providing
services, receiving fees based on performance. This
arrangement places the burden of long-term
financing and implementation on the private sector,
with the government paying only upon project
completion and not incurring additional costs for
overruns (Hamada, 2014).
Partnerships can be based on sectoral or
economic principles and can expand vertically or
horizontally (Brinkerhoff, 2002; Fudenberg & Tirole,
1991). In Jordan, partnerships are often contractual
and economically driven by government priorities
and private sector profitability goals (Bovaird, 2004).
They involve risk-sharing and reducing the public
sector’s financial burden (Flyvbjerg, 2007), enhancing
accountability and transparency (Broadbent &
Laughlin, 2003), and providing necessary technology
and infrastructure (Hodge & Greve, 2007). However,
these projects may neglect social and environmental
impacts due to insufficient government oversight
(Areiqat & Al-Salhi, 2011). The private sector tends
to avoid significant risks by imposing high prices
and shifting responsibilities for price and quality
issues to the public sector (Savas, 2000; Alfen
et al., 2009). Effective partnerships require clear
legislation, defined obligations, adherence to
schedules, and policies that encourage private sector
involvement while reducing risks (Talloua, 2017;
Rondinelli & London, 2003; Huxham & Vangen, 2004;
Klijn & Koppenjan, 2000).
The private sector in Jordan is a key driver of
economic growth and job creation, actively involved
in providing goods and services. Since the state’s
establishment, the government has prioritized
the private sector across economic sectors to foster
development and sustainability. Jordan’s security
and stability have encouraged investment, leading to
policies and laws that enhance private sector
participation. The government began privatizing
in 1985, spurred by economic reforms and a move
towards self-sufficiency. After the 1990s economic
crisis, Jordan integrated many institutions with
the private sector, including telecommunications
and key industries. Private sector investments
exceeded $1 billion in both 2006 and 2007, with
Journal of Governance and Regulation / Volume 14, Issue 1, 2025
31
significant contracts like the Al-Kharrar Al-Samra
wastewater treatment and Queen Alia International
Airport upgrade, creating numerous job opportunities
(Hammouri, 2014).
The private sector in Jordan, in all its forms, is
the backbone of the Jordanian economy in terms of
its contribution to the GDP, employment levels, job
creation, and taxes paid to the state treasury.
The importance of the private sector in the national
economy is highlighted by employing more than 70%
of employees and sharing burdens with the state.
Stability in legislation and the necessary laws to
encourage investment, preserve national capital, and
prevent competition from the public sector are
among the most important services provided by
the government to the private sector (Middle East
Studies Center, 2019).
Hence, it must be said that the Jordanian
government has taken measures to assist the private
sector. According to a report issued by the United
States Agency for International Development (USAID),
Jordan is one of the most improved countries in
terms of business climate globally. The Jordanian
government’s recognition of the importance of this
sector in various economic fields has led to
the private sector’s contribution to the GDP
exceeding 75.2% in 2021, as shown in Table 1 below.
Table 1. Contribution of public and private sectors to the GDP for the period (2010–2021)
Year
Public sector
contribution
to GDP
Private sector
contribution to
GDP
GDP at
current
prices
Public sector
contribution
to GDP
Private sector
contribution to
GDP (%)
Growth in public
sector contribution
to GDP (%)
Growth in private
sector contribution
to GDP (%)
2010 4108.2 12532.4 16640.6 24.7 75.3 0 0
2011 4603.6 13572.9 18176.5 25.3 74.7 2.4 -0.8
2012 4838.8 14636.4 19475.2 24.9 75.1 -1.6 0.5
2013 5124.5 16125.9 21250.4 24.1 75.9 -3.2 1.1
2014 5565.7 17158.8 22724.5 24.5 75.5 1.7 -0.5
2015 5957.1 17901.2 23858.3 25 75 2.1 -0.7
2016 5793.1 18885.6 24678.7 23.5 76.5 -6 2
2017 5882.5 19688.4 25570.9 23 77 -2.1 0.7
2018 6176.5 20372.3 26548.8 23.3 76.7 1.3 -0.4
2019 6521.1 21067.5 27588.6 23.6 76.4 1.3 -0.4
2020 6676.7 20496.1 27172.8 24.6 75.4 4.2 -1.3
2021 6959.3 21152.6 28111.9 24. 8 75.2 0.8 -0.3
Source: Department of Statistics (2021).
Private sector exports in Jordan exceeded
5 billion dinars in 2021. Additionally, 17% of the total
taxes come from the private sector, with sales tax
accounting for more than 71% of the total taxes paid
in 2021. The issuance of the new tax law in 2019
contributed to the increase in government tax
revenues, reaching more than 20% of the total public
revenues in Jordan.
Literature review results indicate a lack of
direct studies on the challenges hindering
the implementation of PPP in the Jordanian
economy. Therefore, this study attempted to utilize
findings from previous studies to achieve its objectives.
2.2. Previous studies
An article by Mofokeng et al. (2023) discusses
the impact of PPP on economic growth in developing
countries. It highlights the limited empirical studies
in this area and aims to fill this gap by examining
the effect of PPP sectoral investments on economic
growth among 35 developing countries from 1997
to 2018. The study uses the neoclassical growth
framework and the system generalized method of
moments (GMM) estimation technique to analyze
the data. The findings suggest that aggregate PPP
investment and energy investment have a positive
impact on economic growth in developing countries.
This indicates the multiplier effect of energy in
stimulating economic growth in these economies.
The article also discusses the policy implications of
these findings, suggesting that PPP investments,
particularly in the energy sector, can be an effective
tool for promoting economic growth in developing
countries.
A paper by de Albornoz et al. (2023) discusses
the use of PPP as part of countercyclical policies to
combat economic recessions. The study conducts
an empirical analysis covering 160 countries over
30 years, focusing on the comparison between PPP
projects reaching financial close during recessions
and those outside a recession. The findings indicate
that only a few European countries have been successful
in deploying PPP as part of countercyclical policies.
The research suggests that increasing the number of
PPP projects while maintaining project size could be
a sensible approach, but this strategy only works in
some developed nations.
According to Malik and Kaur (2022), the purpose
of their study is to investigate the determinants of
PPP projects in Asia. The methodology relies on
the fixed effects panel, random effects, two-step
GMM, and bounded quantile regression during
the period 2010–2019. The results confirm the role
of PPP in physical infrastructure, financial sector
development, market conditions, and institutional
quality, and identifying the determinants of PPP
will help private sector investors make informed
decisions regarding the choice of countries for PPP
investments, increasing the likelihood of project
success.
Fares (2022) aims to address the topic of PPP in
agriculture in Palestine, and this goal was achieved
by following the descriptive analytical approach.
The study tool was a questionnaire targeting
agricultural companies in Palestine. The results
indicated that one-third of agricultural partnerships
were with the government, mostly in the areas of
agricultural product marketing and providing new
seed varieties. Israeli occupation and internal
division negatively affect partnerships with
the public sector. Additionally, agricultural sector
development in Palestine is linked to the strength of
economic policies and applied legal regulations.
Journal of Governance and Regulation / Volume 14, Issue 1, 2025
32
Nasrat et al. (2020) aim to shed light on
the determinants of PPP and the extent of economic
development in Algeria for the period 1993–2018
through the descriptive analytical approach.
The study developed methods and techniques to
address corruption issues due to favoritism for
companies and individuals with links to public
stakeholders. One of the most important results is
that the lack of supervision, transparency, and
integrity undermines investor confidence instead of
attracting them. Therefore, safeguards against
supply monopolies in tenders should be put in place
to ensure transparency, fairness, evaluation, and
approval of the working environment to enhance PPP
for promising economic development.
Obayelu (2018) explores the current status of
PPP in the agricultural business sector in African
countries over the past decade, despite the prominent
challenges. Strong political will, sound governance,
and the provision of a favorable economic and
regulatory environment by the public sector to
the private sector in work are the main drivers of
the successful implementation of PPP in agribusiness.
Developing agribusiness and agricultural industries in
African countries requires large amounts of fixed
capital from the private sector, which the public
sector alone finds difficult to provide.
Talloua (2017) aims to identify the importance
of the integration between the public and private
sectors in achieving development in the governorates
of Gaza. The descriptive analytical approach was
followed, and the study concluded that the public
and private sectors do not effectively play their roles
in development in the absence of an integrative
relationship between the two sectors. The study
recommended giving a real active role to the private
sector by facilitating administrative procedures.
A study by Bo Dhiab (2017) aims to identify
the importance of PPP in terms of its nature,
objectives, and rationale for establishing such
partnerships. The results of the study highlighted
the pivotal role of the PPP in Lebanon and its
positive impact on the Lebanese national economy
and revenue improvement. The study recommended
the development and enhancement of the legislative
and institutional frameworks necessary for
the success of PPP, as well as the provision of
a written oversight system by some government
agencies to ensure compliance with the agreements
and the provision of the required services to citizens
at reasonable prices.
The paper by Kasri and Wibowo (2015) explores
the determinants of private sector participation in
providing public infrastructure in Islamic developing
countries by researching the PPP. This study used
advanced panel data capabilities to develop a cross-
country analysis of private finance determinants
in 48 developing Islamic countries for the period
2002–2011. The results indicate that market
conditions, institutional characteristics, and state
risks are the most important factors determining
private sector participation in financing infrastructure
in Islamic countries. Policymakers in these countries
will be encouraged to prioritize their efforts to
attract private investment in public infrastructure,
which in turn will contribute to increased economic
growth and improved development in the Islamic
region.
The study by Awaida (2014) aimed to identify
the importance of integration between the public
and private sectors in achieving development in
the governorates of Gaza. The descriptive analytical
approach was followed, and the study concluded
that the public and private sectors do not effectively
play their roles in development in the absence of
an integrative relationship between the two sectors.
The study recommended giving a real active role to
the private sector by facilitating administrative
procedures.
What distinguishes this study from previous
studies is that it shares the theoretical and
conceptual framework with them, but differs in that
it focuses on analyzing the overall aspect of
the economy at the level of each sector rather than
studying the contribution of the public or private
sector at the level of individual projects. One of
the difficulties faced by this study is the lack of
previous studies that have addressed the overall
contribution of the public and private sectors to
each sector of the economy. This study is one of
the few Arab studies that attempts to link these
variables together, making it a distinguished
scientific contribution. Furthermore, this study
paves the way for more research and studies in this
field according to the researchers’ knowledge.
2.3. Research hypotheses
Based on the detailed literature review, the research
hypothesis can be formulated as follows:
H0: There is no statistically significant effect at
the level (
α
≤ 0.05) of the partnership between
the public and private sectors, with its dimensions
(legal legislations, political challenges, financial
challenges, administrative challenges, lack of public
awareness) on the Jordanian economy (GDP growth).
Subsidiary (alternative) hypotheses derived
from the main hypothesis:
H1: There is no statistically significant effect at
the level (
α
≤ 0.05) of the partnership between
the public and private sectors (legal legislations)
on the Jordanian economy (GDP growth).
H2: There is no statistically significant effect
at the level (
α
≤ 0.05) of the partnership between
the public and private sectors (political challenges) on
the Jordanian economy (GDP growth).
H3: There is no statistically significant effect
at the level (
α
≤ 0.05) of the partnership between
the public and private sectors (financial challenges)
on the Jordanian economy (GDP growth).
H4: There is no statistically significant effect
at the level (
α
≤ 0.05) of the partnership between
the public and private sectors (administrative
challenges) on the Jordanian economy (GDP growth).
H5: There is no statistically significant effect
at the level (
α
≤ 0.05) of the partnership between
the public and private sectors (lack of public
awareness) on the Jordanian economy (GDP growth).
3. RESEARCH METHODOLOGY
This study adopts the descriptive analytical method
through sources and specialized research on this
topic, to understand the concept of partnership, its
types, importance, and the main reasons for
resorting to it. It will also address the subject of
partnership and its dimensions (legislative
regulations, political challenges, financial challenges,
administrative challenges, lack of public awareness)
as a tool for achieving economic growth, relying on
the use of a questionnaire to collect data from
Journal of Governance and Regulation / Volume 14, Issue 1, 2025
33
the study population. These data will be used to
describe the variables and test the hypotheses of
the study, leading to the results.
3.1. Study population and sample
Participants in the current study included employees
from 63 companies operating in Jordan and listed
on the Amman Stock Exchange. Data was
collected using a self-administrated web-based
survey questionnaire.
The study population consists of financial
managers and administrative managers in private
companies that have partnerships with the public
sector, and their experience is more than 25 years.
The researcher faced difficulty in accessing all
members of the population, so 100 questionnaires
were distributed to financial and administrative
managers. Ninety-five questionnaires were retrieved,
resulting in a response rate of 95%. The majority of
respondents who answered the survey questions
were those aged from 50 years old to 70 years old,
regarding gender, males constituted approximately
96% of the sample.
3.2. Study tool
The study tool consisted of three parts, designed
as follows:
1. Part 1: This part aimed to collect data on
the demographic characteristics of the study sample.
It included questions about:
Gender: Male or female;
Age: Age was distributed into five categories;
Educational qualification: General secondary,
intermediate diploma, bachelor’s degree, master’s
degree, doctorate.
2. Part 2: This part addressed the independent
variable of the study, which is the PPP. This variable
was measured using a Likert scale. It included
the following statements:
Legal legislation measured through five
statements;
Political challenges measured through five
statements;
Financial challenges measured through five
statements;
Administrative challenges measured through
five statements;
Lack of public awareness measured through
five statements.
3. Part 3: This part included phrases related to
measuring economic growth. A Likert scale was used
to collect data for this part. It included the following
statement:
GDP growth measured through five
statements.
3.3. Study model
The hypothetical model of the study was structured
in light of the study’s problem and objectives,
illustrating the independent and dependent
variables, along with their directional relationships
as shown in Figure 1. Accordingly, a hypothetical
model was designed for the current study,
consisting of two main variables; the first concerns
the partnership between the public and
private sectors as an independent variable with
its five dimensions (legal legislation, political
challenges, financial challenges, administrative
challenges, lack of public awareness), while
the second variable concerns the GDP growth as
a dependent variable.
Figure 1. Study model
Source: Developed by the researcher based on the study by Abednego and Ogunlana (2006), Shen et al. (2006), Talloua ( 2017), and Cui
et al. (2018) to suit the nature of the study variables.
4. RESULTS AND DISCUSSION
The measurement instrument (questionnaire) was
subjected to reliability and validity tests to ensure
the achievement of its intended objectives. This was
done after presenting it to specialized referees
in the field and modifying it according to their
opinions and comments.
4.1. Reliability test of the study instrument
Cronbach’s alpha test was used to verify
the reliability of the study instrument. The results,
as shown in Table 2, indicate a high level of
reliability in the respondents’ responses, as
the standard Cronbach’s alpha value exceeds 60%,
which is an acceptable ratio in management research
(Sekaran & Bougie, 2016).
Table 2. Results of the reliability test of the study
instrument (Cronbach’s alpha)
Domain
Cronbach’s alpha
Partnership dimensions 0.631
Legal legislation 0.633
Political challenges 0.681
Financial challenges 0.686
Administrative challenges 0.642
Lack of public awareness 0.652
GDP growth 0.621
Overall performance 0.668
It can be observed from the table that
the lowest Cronbach’s alpha value is 0.621, and
the Cronbach’s alpha value for the overall
performance is 0.668. This indicates that
the reliability is high and statistically significant.
Independent variables:
Dimensions of PPP
Legal legislation
Political challenges
Financial challenges
Administrative challenges
Lack of public awareness
Jordanian gross domestic product
(GDP growth)
Dependent variables
Journal of Governance and Regulation / Volume 14, Issue 1, 2025
34
4.2. Statistical methods used
To obtain the results of the study, the following
statistical methods were used:
Descriptive statistics: Frequencies and
percentages were used to identify the personal
characteristics of the sample. Means and standard
deviations were used to identify the sample’s
trends in the study variables.
Inferential statistics: The researcher used
simple and multiple regression to measure the impact
of the partnership dimensions between the public
and private sectors on the growth of the Jordanian
economy, and thus test the hypotheses.
Table 3. Means and standard deviations for
the sample’s evaluation of the PPP
No.
Variable
Mean
Std. dev.
1 Legal legislation 4.2296 0.17151
2 Political challenges 4.2115 0.16949
3 Financial challenges 4.1904 0.16481
4 Administrative challenges 4.2387 0.14558
5 Lack of public awareness 4.1983 0.14885
Sample attitudes toward PPP. The results in
Table 3 indicate that the sample’s attitudes toward
the PPP are positive. The sample’s average ratings
for this partnership ranged from 4.1904 to 4.2387,
showing a generally agreeable response to statements
related to this partnership.
Table 4. Means and standard deviations for
the sample’s evaluation of growth in
the Jordanian economy
No.
Variable
Mean
Std. dev.
1 GDP growth 4.3096 0.44506
4.3. Hypothesis testing
The results of the multiple linear regression model
in Table 5 indicate that 43.1% of the variations in
the Jordanian economy are due to changes in the PPP,
represented by its dimensions (legal legislations,
political challenges, financial challenges, administrative
challenges, and lack of public awareness). According
to the Durbin-Watson test, there is no autocorrelation
problem between the study variables, with a value
of 1.259. The calculated value of 13.346 (F) is greater
than the tabular value (F). Based on these results, H0
was rejected, and the alternative hypothesis H1 was
accepted, indicating a statistically significant relationship
at the level (α < 0.05) between the PPP, with its
dimensions, and the Jordanian economy (GDP growth).
Table 5. Results of the study on the impact of the PPP, with its dimensions, on the Jordanian economy
(GDP growth)
Variables
Parameter
t
R2
Significance level
F
Durbin-Watson test
Constant 1.381 0.756 0.431 0.452 13.346 1.259
Legal legislation 2.364 0.020
Political challenges -3.082 0.003
Financial challenges -3.733 0.000
Administrative challenges -2.503 0.014
Lack of public awareness -2.121 0.037
Table 6. Impact of the legal legislation
on the Jordanian economy (GDP growth)
R
R2
t
Significance level
0.459 0.210 4.949 0.000
The study’s results in the table above indicate
that legal legislations contribute by 21% to
the variation in the Jordanian economy (GDP
growth). The results also show a statistically significant
effect of the PPP (legal legislation) on the Jordanian
economy (GDP growth), with a t-value of 4.949 and
a significance level of 0.000, which is less than
the significance level (
α
≤ 0.05). This result is
consistent with the studies by Kasri and Wibowo
(2015), Awaida (2014), and Fares (2022).
Table 7. Impact of the political challenges on
the Jordanian economy (GDP growth)
R R2 t Significance level
0.364 0.132 3.746 0.000
The results of the study indicate that political
challenges contribute by 13.2% to the variation
in the Jordanian economy (GDP growth). The results
also show a statistically significant effect of the PPP
(political challenges) on the Jordanian economy (GDP
growth), with a t-value of 3.746 and a significance
level of 0.000, which is less than the significance
level (
α
≤ 0.05). This result is consistent with
the studies by Talloua (2017) and Obayelu (2018).
Table 8. Impact of the financial challenges on
the Jordanian economy (GDP growth)
R R2 t Significance level
0.479 0.230 5.239 0.000
The results of the study indicate that financial
challenges contribute 23% to the variation in
the Jordanian economy (GDP growth). The results
also show a statistically significant effect of the PPP
(financial challenges) on the Jordanian economy
(GDP growth), with a t-value of 5.239 and
a significance level of 0.000, which is less than
the significance level (
α
≤ 0.05). This result is
consistent with the study by Bo Dhiab (2017).
Table 9. Impact of the administrative challenges on
the Jordanian economy (GDP growth)
R
R2
t
Significance level
0.173 0.030 -1.685 0.095
The results indicate that administrative
challenges contribute by 3% to the variation in
the Jordanian economy (GDP growth). The results
also show a statistically significant effect of the PPP
(administrative challenges) on the Jordanian
economy (GDP growth), with a t-value of -1.685 and
a significance level of 0.095, which is less than 10%
(
α
≤ 0.10). This result is consistent with the study by
Malik and Kaur (2022).
Journal of Governance and Regulation / Volume 14, Issue 1, 2025
35
Table 10. Impact of the lack of public awareness on
the Jordanian economy (GDP growth)
R
R2
t
Significance level
0.210 0.044 2.063 0.042
The results indicate that lack of public
awareness contributes 4.4% to the variation in
the Jordanian economy (GDP growth). The results
also show a statistically significant effect of lack of
public awareness on the Jordanian economy (GDP
growth), with a t-value of 2.063 and a significance
level of 0.042, which is less than the significance
level (
α
≤ 0.05). This result is consistent with
the study by Nasrat et al. (2020).
5. CONCLUSION
By examining the results of the simple and multiple
regression models, it was found that their results
are similar in terms of the type of relationship.
The null hypothesis was rejected, and the alternative
hypotheses were accepted, which states that there is
a relationship between purchasing power parity
variables and economic growth in Jordan. The results
were statistically significant at the level
α
≥ 0.05
for the dimensions of PPP (legal systems, political
challenges, financial challenges, administrative
challenges, and lack of public awareness) on economic
growth in Jordan. Legal systems positively affect
GDP growth, while political and financial challenges
negatively affect it. Administrative challenges also
hinder economic growth, and a lack of public
awareness reduces the success of projects, which
negatively affects economic growth. The results
confirm the importance of PPP for economic
stakeholders in Jordan. Therefore, it is necessary to
support the private sector, improve the partnership
environment, enhance cooperation between sectors,
overcome financial and administrative challenges,
and expand the scope of future research.
In conclusion, the results of this paper are
of great importance to various stakeholders in
the Jordanian economy, ranging from policymakers,
economists, and financiers, to local and international
investors, and to all those interested in the field
of PPP.
This study was limited to private companies
that have partnerships with the public sector in
Jordan. The researcher suggests that the study be
applied on a broader scale, for instance, in Middle
Eastern countries that share similar social structures
and are distinguished by having diverse economies.
In the current study, the impact of the dimensions
of PPP (legal regulations, political challenges,
financial challenges, administrative challenges,
and lack of public awareness) was examined as
an independent factor in the partnership between
the public and private sectors. Accordingly,
the researcher suggests conducting further future
studies to examine the impact of other independent
factors in PPP, such as technical and technological
challenges, regulatory challenges, and digital
economy challenges on economic growth, as this
may lead to better results.
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APPENDIX
Table A.1. Arithmetic means and standard deviations for evaluating the sample for PPP
Phrase Arithmetic mean Standard deviation
Legal legislation
1.
Legal legislation encourages partnership between the public and private sectors. 3.8 0.61
2.
Legal legislation solves problems that may arise in public-private partnerships fairly. 3.7 0.51
3. There is no contradiction in legal legislation in promoting partnership between
the public and private sectors. 3.6 0.81
4. Legal legislation is updated periodically to align with economic changes to
promote partnership between the public and private sectors. 3.7 0.80
5. Legal legislation is periodically updated to align with economic changes to
reduce unemployment. 3.6 0.79
Average 3.7 0.7
Political challenges
6.
Political challenges inhibit partnership between the public and private sectors. 3.8 0.61
7. Political legislation updates are periodic and in line with economic developments
and increasing employment rates. 3.7 0.51
8. There is no contradiction in political legislation that encourages partnership
between the public and private sectors. 3.6 0.81
9. Political legislation is periodically updated to encourage partnerships between
the public and private sectors. 3.7 0.55
10.
Political legislation studies aim to increase economic development. 3.6 0.57
Average 3.7 0.61
Financial challenges
11. Improving the financial situation in the country encourages partnership
between the public and private sectors and reduces unemployment. 3.5 0.32
12. Private sector contribution to providing the necessary funds for projects
encourages partnership between the public and private sectors and increases
economic development.
3.4 0.51
13. Financial challenges contribute to inhibiting partnerships between the public
and private sectors. 3.3 0.33
14. International financial grants encourage partnerships between the public and
private sectors. 3.3 0.34
15. Financial corruption in partnership projects negatively affects the development
of partnerships between the public and private sectors. 3.5 0.37
Average 3.4 0.37
Administrative challenges
16. Training project managers to encourage partnership between the public and
private sectors and thus increase employment levels. 3.3 0.32
17. Improving the administrative level of partners encourages partnership between
the public and private sectors and helps in increasing economic development. 3.4 0.34
18. Administrative agreement on all terms of the partnership contract helps in
the success of a partnership between the public and private sectors. 3.2 0.33
19. Administrative challenges facing partnerships contribute to inhibiting
partnerships between the public and private sectors. 3.4 0.34
20. Administrative corruption in partnership projects negatively affects
the development of partnerships be tween the public and private sectors. 3.5 0.35
Average 3.4 0.34
Lack of public awareness
21. Lack of public awareness appears in the concept of partnership between
the public and private sectors. 3.3 0.23
22. Lack of public awareness appears in matters related to the importance of
partnership between the public and private sectors. 3.3 0.36
23. There is a lack of public awareness in matters related to the advantages of
partnership between the public and private sectors. 3.4 0.35
24. Lack of public awareness appears in the effects of partnerships between
the public and private sectors on economic development. 3.5 0.34
25. Lack of public awareness appears in the results of partnerships between
the public and private sectors on unemployment levels. 3.3 0.35
Average 3.4 0.33
Table A.2. Arithmetic means and standard deviations for evaluating economic growth in the Jordanian economy
Phrase Arithmetic mean Standard deviation
Economic GDP growth
26. One of the most important criteria for economic growth is GDP growth, which
is directly proportional to it. 3.5 0.31
27.
Increased financial challenges reduce GDP growth. 3.4 0.33
28.
High levels of administrative corruption reduce GDP growth. 3.3 0.33
29. Legal legislation is periodically updated to encourage increased production,
which increases GDP growth. 3.4 0.34
30. Political legislation takes into account the issue of partnership between
the public and private sectors, whic h increases GDP growth. 3.5 0.35
Average 3.4 0.33
