IMPROVING PUBLIC–PRIVATE PARTNERSHIP MECHANISMS IN THE REGIONAL SOCIO-ECONOMIC SYSTEM

Abstract

In the context of contemporary structural economic transformations and fiscal constraints, regional socio-economic systems require innovative governance models and effective investment instruments to support longterm competitiveness. Public–private partnerships (PPPs) have emerged as an important institutional mechanism for modernising physical and social infrastructure, improving resource allocation, and supporting sustainable regional development. At the same time, the effectiveness of sub-national PPP frameworks can be influenced by the distribution of risks, the transparency and efficiency of regulatory and administrative procedures, and the degree of alignment between private-sector objectives and broader regional development priorities. This study examines the theoretical and practical foundations for improving PPP mechanisms in regional contexts. Using a methodology based on structural-functional analysis, institutional economics, and comparative policy analysis, the study identifies key structural factors affecting private-sector participation in regional development projects. The findings indicate that improving PPP implementation requires an integrated management framework incorporating digitalised administrative procedures, adaptive riskallocation mechanisms, and socio-economic impact indicators tailored to regional characteristics. The study formulates practical recommendations and institutional measures aimed at reducing transaction costs, improving the conditions for investor participation, and promoting greater alignment between commercial incentives and public policy objectives. The study contributes to the discussion of regional economic development by proposing a balanced conceptual approach designed to strengthen the investment environment while supporting sustainable socio-economic governance at the regional level.