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Potential effects of scaling-up infrastructure in Peru: a general equilibrium model-based analysis

Author

Listed:
  • Jean-Marc Montaud

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

  • Jorge Dávalos

    (Universidad del Pacífico)

  • Nicolas Pecastaing

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

Abstract

This study assesses and compares the potential economic impacts of different investment plans dedicated to filling infrastructure gaps in Peru. Using a national database at the firm level, we start by estimating empirically the positive externalities of Peruvian infrastructure, such as energy, telecommunications, and transportation facilities, on the output of private activities. In the second step, these estimates are introduced in a dynamic computable general equilibrium model used to conduct counterfactual simulations of various investment plans in infrastructure over a 15-year period. These simulations show first to what extent scaling-up infrastructure could be a worthwhile strategy to achieve economic growth in Peru; however, they also show that these benefits depend on the choice of funding schemes related to such public spending.

Suggested Citation

  • Jean-Marc Montaud & Jorge Dávalos & Nicolas Pecastaing, 2020. "Potential effects of scaling-up infrastructure in Peru: a general equilibrium model-based analysis," Post-Print hal-02399953, HAL.
    • Handle: RePEc:hal:journl:hal-02399953
    DOI: 10.1080/00036846.2019.1696940
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    Cited by:

    1. Botero García, Jesús Alonso & Hurtado, Alvaro & Montañez Herrera, Diego Fernando, 2021. "The productivity of the agricultural sector and its effects on economic growth: a CGE analysis," Conference papers 333318, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    Keywords

    productivity; CGE model; Peru; Infrastructure;
    All these keywords.

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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