Improving Public Infrastructure in the Philippines

Author/Editor:

Takuji Komatsuzaki

Publication Date:

February 29, 2016

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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

Please address any questions about this title to publications@imf.org