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

Luc Savard

Cahiers de recherche from Departement d'économique de l'École de gestion à l'Université de Sherbrooke

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.

Keywords: Investment externalities; foreign aid; fiscal reforms; poverty; CGE; microsimulation (search for similar items in EconPapers)
JEL-codes: C68 E62 F35 H54 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2010-02-15
New Economics Papers: this item is included in nep-cmp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (24)

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http://gredi.recherche.usherbrooke.ca/wpapers/GREDI-1006.pdf First version, 2010 (application/pdf)

Related works:
Journal Article: Scaling up infrastructure spending in the Philippines: A CGE top-down bottom-up microsimulation approach (2010)
Working Paper: Scaling Up Infrastructure Spending in the Philippines: A CGE Top-Down Bottom-Up Microsimulation Approach (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:shr:wpaper:10-06

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