## Improving Public Infrastructure in the Philippines

_IMF Working Papers, February 29, 2016_

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**Canonical URL:** [Improving Public Infrastructure in the Philippines](https://www.imf.org/en/publications/wp/issues/2016/12/31/improving-public-infrastructure-in-the-philippines-43751)

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## Bibliographic details
- Authors: Takuji Komatsuzaki
- Published: February 29, 2016
- Series: IMF Working Papers

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### Summary
- This paper explores the macroeconomic effects of improving public infrastructure in the Philippines.
- Methodology: benchmarking the Philippines relative to its neighbors in terms of level of public capital and quality of public infrastructure, and public investment efficiency; then using model simulations to assess the macroeconomic implications of raising public investment and improving public investment efficiency.

### Main results / findings
- Increasing public infrastructure investment results in sustained gains in output.
- The effects of improving public investment efficiency are substantial.
- Deficit-financed increases in public investment lead to higher borrowing costs that constrain output increases over time, underscoring the importance of revenue mobilization.

### Policy implications and emphasis
- Raise public infrastructure investment to achieve sustained output gains.
- Improve public investment efficiency to amplify macroeconomic benefits.
- Prioritize revenue mobilization when scaling up public investment to avoid higher borrowing costs that could constrain output increases over time.

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/improving-public-infrastructure-in-the-philippines-43751_