Evaluation of economic inequality in manufacturing public-private partnerships

Abstract

The emerging trend for innovating the manufacturing sector in the developed economies of the world makes urgent the use of the public-private partnerships to launch capital-intensive investment projects, that is supposed to star up endeavors on behalf of the state and different agents from the private sector and sets up novel principals of interaction between main stakeholders. Reaching not only the financial efficiency, but also the balance of economic interests becomes the foundation for sustainable partners’ relations, when they are numerous. The success of such a partnership depends, at a big extent, on the income distribution between the participants of cooperation. The proposed project analysis and the Gini index allow evaluating the extent of unequal accumulation of benefits, along with related costs, between stakeholders of PPP. he large scale project for manufacturing Nano ceramics in Novosibirsk can be looked upon as the case study, where the proposed method was applied. This case demonstrates how performs the well-balanced mechanism of PPP, where the Gini index, ranged from 0.141 to 0.223, depends on the exact grouping of participants. Accumulation of empirical findings and successful practices of well-balanced public-private partnerships in manufacturing sector can broaden the discussion on the issue of the parity and fairness of distribution taking into consideration the limited resources of society.