IMF Staff Country Reports

Former Yugoslav Republic of Macedonia: Selected Issues

Publication Date:

November 21, 2016

Electronic Access:

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Summary:

This Selected Issues paper quantifies the short- and medium-term growth effects of major ongoing highway and railway projects in the Former Yugoslav Republic of Macedonia. A standard neoclassical growth model is augmented with public capital to capture both demand and supply-side effects of public infrastructure investments. The calibrated model suggests that the four ongoing highway and railway investments of 2–3 percent of GDP annually for 2014–18 are likely to raise the growth rate of real GDP by 0.5 percentage points on average for each year in 2014–20. Enhancing public investment efficiency can increase growth effects up to 0.8 percentage points.

Series:

Country Report No. 2016/357

Subject:

Balance of payments Expenditure Foreign direct investment Infrastructure National accounts Public investment and public-private partnerships (PPP) Public investment spending Transportation