This paper investigates the impact of within-country religious diversity on the performance of private participation infrastructure projects. Our analysis of 8139 projects in 33 countries (1990–2014) shows that higher levels of within-country religious diversity are associated with a higher risk of project failure. This negative effect is exacerbated in greenfield projects and when a project's main sponsor is a foreign firm. In contrast, we find no moderation effect for local government ownership. The study contributes to the ongoing debate regarding the effects of within-country diversity on foreign business ventures.
Bibliographical notePublished online: 6. October 2018
- Within-country religious diversity
- Private participation infrastructure project
- Multinational enterprise