TY  - RPRT
AB  - 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.
AU  - Ahmed, Vaqar
AU  - Abbas, Ahsan
AU  - Ahmed, Sofia
DA  - 2013-02
DA  - 2013-02
DO  - 10.22004/ag.econ.164414
DO  - doi
ID  - 164414
KW  - Public Economics
KW  - Infrastructure
KW  - Economic Growth
KW  - Poverty
KW  - Pakistan
KW  - Computable General Equilibrium
L1  - https://ageconsearch.umn.edu/record/164414/files/1360634389-WP_2013-01_MPIA-12304.public.2.pdf
L2  - https://ageconsearch.umn.edu/record/164414/files/1360634389-WP_2013-01_MPIA-12304.public.2.pdf
L4  - https://ageconsearch.umn.edu/record/164414/files/1360634389-WP_2013-01_MPIA-12304.public.2.pdf
LA  - eng
LK  - https://ageconsearch.umn.edu/record/164414/files/1360634389-WP_2013-01_MPIA-12304.public.2.pdf
N2  - 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.
PY  - 2013-02
PY  - 2013-02
T1  - Public Infrastructure and economic growth in Pakistan: a dynamic CGE-microsimulation analysis
TI  - Public Infrastructure and economic growth in Pakistan: a dynamic CGE-microsimulation analysis
UR  - https://ageconsearch.umn.edu/record/164414/files/1360634389-WP_2013-01_MPIA-12304.public.2.pdf
Y1  - 2013-02
T2  - MPIA
T2  - 1360634389
ER  -