@article{Ahmed:164414,
      recid = {164414},
      author = {Ahmed, Vaqar and Abbas, Ahsan and Ahmed, Sofia},
      title = {Public Infrastructure and economic growth in Pakistan: a  dynamic CGE-microsimulation analysis},
      address = {2013-02},
      number = {1221-2016-98595},
      series = {MPIA},
      pages = {35},
      year = {2013},
      abstract = {The role of infrastructure in economic growth and welfare  has been studied extensively across
the literature over the  past three decades. We use a dynamic CGE model linked to  a
microsimulation model to estimate the macro-micro impact  of public infrastructure investment.
Two approaches to  public investment are considered in our simulations. In the  first, production
taxes finance the additional public  infrastructure investment and in the second,  foreign
borrowing provides resources. Our results reveal  that public infrastructure investments have the
same  direction of impact whether funded by taxation or  international borrowing, particularly
when looking at  macroeconomic gains and poverty reduction in the long run.  However, in the
very short run, tax financing puts a strain  on output in the industrial sector and thus  reduces
economic growth in the short run. The financing  from international borrowing has a Dutch
disease-like  impact in the short run, as indicated by a decline in  exports.},
      url = {http://ageconsearch.umn.edu/record/164414},
      doi = {https://doi.org/10.22004/ag.econ.164414},
}