IDEAS home Printed from https://ideas.repec.org/p/lvl/mpiacr/2012-15.html

The Growth and Distributive Impacts of Public Infrastructure Investments in the Philippines

Author

Listed:
  • Erwin Corong
  • Lawrence Dacuycuy
  • Rachel Reyes
  • Angelo Taningco

Abstract

This study investigates the role of public infrastructure investment on economic growth and poverty reduction in the Philippines. Using a dynamic general equilibrium-microsimulation model that explicitly models public capital as a production input, we find that the positive supply side effects of higher public investment expenditure manifest over time, through higher capital accumulation and improved productivity. Our findings reveal that higher public infrastructure investment not only positively impacts real GDP, but also reduces poverty and inequality in the short and long run. In this context, the Philippine government needs to become more proactive in finding ways to finance higher public investment expenditures. This is especially relevant with respect to international financing, given the narrow tax base in the country. Our simulation results confirm that international financing is a better alternative than tax financing when considered in terms of its ability to improve the economy’s physical infrastructure in order to create job opportunities, improve productivity and complement its social protection measures.

Suggested Citation

  • Erwin Corong & Lawrence Dacuycuy & Rachel Reyes & Angelo Taningco, 2012. "The Growth and Distributive Impacts of Public Infrastructure Investments in the Philippines," Working Papers MPIA 2012-15, PEP-MPIA.
    • Handle: RePEc:lvl:mpiacr:2012-15
    as

    Download full text from publisher

    File URL: https://portal.pep-net.org/documents/download/id/19928
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Chen, Zhenhua & Daito, Nobuhiko & Gifford, Jonathan L., 2017. "Socioeconomic impacts of transportation public-private partnerships: A dynamic CGE assessment," Transport Policy, Elsevier, vol. 58(C), pages 80-87.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • E27 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Forecasting and Simulation: Models and Applications
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:lvl:mpiacr:2012-15. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manuel Paradis (email available below). General contact details of provider: https://edirc.repec.org/data/cdvlvca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.