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Scaling up Infrastructure spending in the Philippines: A CGE top-down/bottom up microsimulation approach

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  • Luc Savard

    ()
    (Professeur, GREDI, Département d’économique, Faculté d’administration, Université de Sherbrooke, Sherbrooke, Québec, Canada)

Abstract

In 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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File URL: http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-1006.pdf
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Bibliographic Info

Paper 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.

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Length: 35 pages
Date of creation: 15 Feb 2010
Date of revision:
Handle: RePEc:shr:wpaper:10-06

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Postal: Sherbrooke, Québec, J1K 2R1
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Web page: http://www.gredi.org/home/documents-de-travail
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Related research

Keywords: Investment externalities; foreign aid; fiscal reforms; poverty; CGE; microsimulation;

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References

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  1. Sherman, Robinson & Robilliard, Anne-Sophie & Bourguignon, François, 2005. "Representative versus real households in the macro-economic modelling of inequality," Economics Papers from University Paris Dauphine 123456789/4535, Paris Dauphine University.
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  6. Stephen R. Yeaple & Stephen S. Golub, 2007. "International Productivity Differences, Infrastructure, and Comparative Advantage," Review of International Economics, Wiley Blackwell, vol. 15(2), pages 223-242, 05.
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  12. Antonio Estache & Jean-François Perrault & Luc Savard, 2008. "Impact Of Infrastructure Spending In Sub-Saharan Africa: A Cge Modeling Approach," Cahiers de recherche 08-03, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
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  19. Stifel, David C. & Thorbecke, Erik, 2003. "A dual-dual CGE model of an archetype African economy: trade reform, migration and poverty," Journal of Policy Modeling, Elsevier, vol. 25(3), pages 207-235, April.
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Citations

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Cited by:
  1. George Verikios & Xiao-guang Zhang, 2013. "Reform of Australian Urban Transport: A CGE-Microsimulation Analysis of the Effects on Income Distribution," Centre of Policy Studies/IMPACT Centre Working Papers g-239, Victoria University, Centre of Policy Studies/IMPACT Centre.
  2. Hélène Maisonnave & Ramos Mabugu & Margaret Chitiga & Véronique Robichaud, 2013. "Analysing Job Creation Effects of Scaling Up Infrastructure Spending in South Africa," Cahiers de recherche 1310, CIRPEE.
  3. Andrew Feltenstein & Luciana Lopes & Janet Porras Mendoza & Sally Wallace, 2013. "“The Impact of Micro-simulation and CGE modeling on Tax Reform and Tax Advice in Developing Countries”: A Survey of Alternative Approaches and an Application to Pakistan," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1309, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
  4. George Verikios & Xiao-guang Zhang, 2014. "Structural change and income distribution: the case of Australian telecommunications," Centre of Policy Studies/IMPACT Centre Working Papers g-240, Victoria University, Centre of Policy Studies/IMPACT Centre.

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