Improving Public Infrastructure in the Philippines
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Summary:
This paper explores the macroeconomic effects of improving public infrastructure in the Philippines. After benchmarking the Philippines relative to its neighbors in terms of level of public capital and quality of public infrastructure, and public investment efficiency, it uses model simulations to assess the macroeconomic implications of raising public investment and improving public investment efficiency. The main results are as follows: (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, underscoring the importance of revenue mobilization.
Series:
Working Paper No. 2016/039
Subject:
Expenditure Infrastructure National accounts Private investment Public debt Public investment and public-private partnerships (PPP) Public investment spending
English
Publication Date:
February 29, 2016
ISBN/ISSN:
9781513515113/1018-5941
Stock No:
WPIEA2016039
Pages:
24
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