Prospects for Developing Public–Private Partnerships in Regions with Limited Potential for Self-development

Paper aims to identify promising areas for developing public–private partnership mechanisms, mainly concession agreements. To achieve this goal, paper considers Central Russia regions development and the conditions under which public–private partnerships can increase the potential of their self-development. Based on practical experience in implementing concession agreements, the authors identified objective and institutional factors of projects. Paper concludes that public–private partnerships development in economic activities that integrate the internal resource capabilities is hindered by objective (e.g., the insufficient mass of entrepreneurs, limited investment opportunities at the expense of own capital, low level of return on assets and business capital, and low market capacity) and institutional factors (e.g., difficulties of making adjustments because of changes in environmental factors, institutional changes, insufficient development of tools to stimulate PPP at the regional level, overestimated criteria for obtaining resources of development institutions, etc.).