EuroEconomica, Vol 33, No 2 (2014)

Abstract

The paper aims to study the impact of certain determinants on the choice of local authorities to use public - private interdependence for the provision of water supply services, based on the Spanish and Romanian local experiences. Being aware of their impact, the authorities could place a particular focus on the determinants that lead to local development. Several studies reveal that public – private interdependence is a powerful tool for building local development (Melo & do Carmo, 2008; Dessi & Floris, 2009) and states are interested in finding out ways to obtain it. The complex methodology of the paper was designed in accordance with the particularities of each country studied. Gathering the data for Romania implied conducting several interviews, and for Spain survey, exploratory analysis and semi-structured interviews were applied. The determinants’ influence was tested through logit or linear probability model. The analysis validates that population, density of population, indirect taxes, affiliation of the city representative to a certain political party is influencing the option of local public authorities. The paper brings recommendations on promoting public - private interdependence in water supply services. The paper is mainly valuable for the parallel that is made between Spain and Romania in water supply services and it brings progress in comparative country cases.