Optimum investment development strategy

Rolando Jiron-Cajina

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: The problem of the spatial distribution of public investment for development is examined using the country of Guatemala as a case study. Priorities for investment are defined at the county level on the basis of the need for roads, health and education delivery infrastructure, water and electricity distribution systems as well as potential increase in agricultural output. The need for roads, health, education, water and electricity was determined using gap analysis. In the derivation of the gaps, moving standards that varied according to the specific conditions of the county involved were used. The potential increase in agricultural production was estimated through the analysis of presently used indigenous methods which have proven to be yield effective. A computerized mapping system is used to simulate the spatial distribution of investments as different weights are attached to the needs for services and the potential for increased agricultural production;The hierarchy of central places for Guatemala is estimated and used as the reference system for the location of public sector investments. A multiple goal programming model is used to simulate public sector investments in view of the fulfillment of competing goals and the financial and institutional constraints of the government.

Date: 1982-01-01
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