Economics at your fingertips  

Improving Public Infrastructure in the Philippines

Takuji Komatsuzaki ()
Additional contact information
Takuji Komatsuzaki: Senior Economist, International Monetary Fund (IMF), Washington, DC.

Asian Development Review, 2019, vol. 36, issue 2, 159-184

Abstract: This paper explores the macroeconomic effects of improving public infrastructure in the Philippines, modeling the infrastructure scale-up plan being implemented by the current administration. After benchmarking the Philippines’ level of infrastructure investment, quantity and quality of public infrastructure, and public investment efficiency relative to its neighboring countries, the analysis uses a dynamic general equilibrium model to quantitatively assess the macroeconomic implications of raising public investment expenditure with different financing schemes and different rates of public investment efficiency. Critically dependent on a model structure in which accumulation of publicly provided infrastructure raises the overall productivity of the economy, the model simulations show that (i) increasing public infrastructure investment results in sustained gains in output, (ii) the effects of improving public investment efficiency are substantial, and (iii) deficit-financed increases in public investment lead to higher borrowing costs that constrain output increases over time. These results underscore the importance of improving public investment efficiency and revenue mobilization.

Keywords: infrastructure; Philippines; public investment efficiency; revenue mobilization (search for similar items in EconPapers)
JEL-codes: E22 E62 H54 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0116-1105

Access Statistics for this article

Asian Development Review is currently edited by Yasuyuki Sawada and Naoyuki Yoshino

More articles in Asian Development Review from MIT Press
Bibliographic data for series maintained by Ann Olson ().

Page updated 2021-03-27
Handle: RePEc:tpr:adbadr:v:36:y:2019:i:2:p:159-184