Developing a model for Iran about the relationship between economic freedom indices and public private partnerships

In recent decades, simultaneously with increasing needs for more infrastructures in the developing countries, the public private partnership (PPP) model has attracted attention as a way to attract capital to sectors, while also promoting better budgetary management and transparency in public finances. This article develops a PPP model for infrastructure development in Iran via panel data analysis of 20 developing countries in the world via Eviews software regarding the relationship between economic freedom indices of Heritage Foundation and Public Private Partnerships investment. However, these benefits will only be materialized when a PPP project is properly planned and managed and both the public and private sectors work together successfully. Iranʹs economy might have been hit by the ongoing adjustment to lower oil revenues and moving toward privatization by selling state-owned entities and transferring infrastructures and public services to the private sector. Findings reveal that a positive relationship among "business freedom, fiscal freedom and property rights and PPPs" has been seen. On the other side, "trade freedom, government size, monetary freedom, investment freedom, financial freedom and freedom from corruption" have negative relationship with PPP investments in Iran. Thus economic freedom is a main success factor for the success of PPPs in Iran. The better economic freedom we have in Iran, the better conditions we will have for the implementation of PPPs.