Scaling up Infrastructure spending in the Philippines: A CGE top-down/bottom up microsimulation approach
AbstractIn this paper we use a top-down bottom up microsimulation CGE model with endogenous labour supply to explore the impact of scaling up infrastructure in the Philippines. As the debate on the importance of scaling up infrastructure to stimulate growth and provide a push to growth, some analyst raise concern on financing these infrastructures after construction and that external funding can create major distortion and have a negative impact on the trade balance of these countries and adverse effect on poverty. This study aims to provide so insight into this debate. It draws from the infrastructure productivity literature to postulate positive productive externalities of new infrastructure and Fay and Yepes (2003) for operating cost associated with new infrastructure. We investigate on types fiscal tools to fund the new infrastructure and operation and maintenance costs. We compare our simulations to non productive investments.
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Bibliographic InfoPaper provided by Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke in its series Cahiers de recherche with number 10-06.
Length: 35 pages
Date of creation: 15 Feb 2010
Date of revision:
Investment externalities; foreign aid; fiscal reforms; poverty; CGE; microsimulation;
Other versions of this item:
- Luc Savard, 2010. "Scaling up infrastructure spending in the Philippines: A CGE top-down bottom-up microsimulation approach," International Journal of Microsimulation, Interational Microsimulation Association, vol. 3(1), pages 43-59.
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- F35 - International Economics - - International Finance - - - Foreign Aid
- H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
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