The Effective Factors on Private Sector Cooperation as an Approach to Finance Sustainable Recourses of Municipality Projects

Absorbing finances from the private and foreign sectors for implementation of municipalities’ projects are counted as valid methods of providing financial resources in urban management field. Currently, one of the main approaches in urban and rural management fields in the country is reducing dependencies on governmental aids and dues and moving toward identifying T stable earnings and new instruments of providing financial resources such as: attracting domestic and foreign investors.The main goal of this research is studying the effective factors on the participation of private sector providing stable financial recourses for municipality projects. According to the collected data, part of the potential investors do not participate in urban projects, therefore, using usual econometric methods have incompatible results. In order to estimate the parameters of this function, Logit and Probit method based on the maximum likelihood function is used. It is necessary to mention that for estimating function, Stata software is used. The statistical population is Tabriz city and its municipality. Required data were collected via survey method and the instruments of data collection were questionnaire and field findings. In this study, random sampling method was used and for determining the required sample size Cochran formula and Morgan table were used. The findings of this research show that factors such as improving business environment and efficient laws which guarantee the profit of private functionary make private sector increase the implementation of urban projects, and the presence of bureaucracy and lack of suitable capacity building delay the process mutually.