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Potential Effects of Scaling-up Infrastructure in Peru: a General Equilibrium Model-based Analysis

Jean-Marc Montaud, Nicolas Pécastaing () and Jorge Davalos

Working Papers from CATT - UPPA - Université de Pau et des Pays de l'Adour

Abstract: This study assesses the potential economic impacts of investments dedicated to filling infrastructure gaps in Peru. By using a national database at the firm level, we start by empirically estimating the positive externalities of Peruvian infrastructure on private activities’ output. In the second step, these estimates are introduced in a dynamic Computable General Equilibrium model used to conduct counterfactual simulations of various investment plans in infrastructure over a 15-year period. These simulations show to what extent scaling-up infrastructure could be a worthwhile strategy to achieve economic growth in Peru; however, they also show that these benefits depend on the choice of funding schemes related to such public spending.

Keywords: Infrastructure; Productivity; CGE model; Peru (search for similar items in EconPapers)
JEL-codes: D58 H54 O47 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2019-07, Revised 2019-07
New Economics Papers: this item is included in nep-cmp
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