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Potential effect of Scaling-up Iinfrastructure in Peru: a general equilibrium model-bases analysis

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  • Jorge Davalos

    (Universidad del Pacífico, Centro de investigacion de la Universidad del Pacifico (CIUP))

  • Jean-Marc Montaud

    (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour)

  • Nicolas Pecastaing

    (Universidad del Pacífico, Centro de investigacion de la Universidad del Pacifico (CIUP))

Abstract

This study assesses the potential economic impacts of investments dedicated to filling infrastructure gaps in Peru. By using a national database at the firm level, we start by empirically estimating the positive externalities of Peruvian infrastructure on private activities' output. In the second step, these estimates are introduced in a dynamic Computable General Equilibrium model used to conduct counterfactual simulations of various investment plans in infrastructure over a 15-year period. These simulations show to what extent scaling-up infrastructure could be a worthwhile strategy to achieve economic growth in Peru; however, they also show that these benefits depend on the choice of funding schemes related to such public spending.

Suggested Citation

  • Jorge Davalos & Jean-Marc Montaud & Nicolas Pecastaing, 2019. "Potential effect of Scaling-up Iinfrastructure in Peru: a general equilibrium model-bases analysis," Working Papers hal-02937833, HAL.
    • Handle: RePEc:hal:wpaper:hal-02937833
    Note: View the original document on HAL open archive server: https://univ-pau.hal.science/hal-02937833
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    References listed on IDEAS

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    1. Botero García, Jesús Alonso & Franco Gonzalez, Humberto & Hurtado Rendon, Alvaro & Arellano Morales, Matheo & MontañEz Herrera, Diego Fernando, 2020. "Fiscal sustainability, public expense and economic growth," Conference papers 333218, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

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