Former Yugoslav Republic of Macedonia: Selected Issues
IMF Staff Country Reports, November 21, 2016
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- Canonical URL
- Former Yugoslav Republic of Macedonia: Selected Issues
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Bibliographic details
- Published: November 21, 2016
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475554861.002
Overview
- Quantifies the short- and medium-term growth effects of major ongoing highway and railway projects in the Former Yugoslav Republic of Macedonia.
- Focuses on four ongoing highway and railway investments undertaken in 2014–18.
Methodology
- Uses a standard neoclassical growth model augmented with public capital.
- The augmented model is designed to capture both demand and supply-side effects of public infrastructure investments.
Key findings and projections
- 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.
Policy implications and recommendations
- Maintain and prioritize the planned highway and railway investments to secure the projected growth boosts.
- Improve public investment efficiency to amplify growth impacts from 0.5 percentage points up to 0.8 percentage points.
International Monetary Fund. "Former Yugoslav Republic of Macedonia: Selected Issues", IMF Staff Country Reports, November 21, 2016.
Content in this bundle
- Former Yugoslav Republic of Macedonia: Selected Issues; IMF Country Report 16/357; October 24, 2016