The Impact of Infrastructure Spending in Sub-Saharan Africa : A CGE Modeling Approach
The authors constructed a standard computable general equilibrium (CGE) model to explore the economic impact of increased spending on infrastructure in six African countries: Benin, Cameroon, Mali, Senegal, Tanzania, and Uganda. The basic elements...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100728140341 http://hdl.handle.net/10986/3870 |
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okr-10986-3870 |
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oai_dc |
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Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCOUNTING ADVERSE EFFECT AFFILIATED ORGANIZATIONS AGRICULTURE BANK POLICY BASELINE SCENARIO BUDGET CONSTRAINT BUDGET CONSTRAINTS BUDGETARY ASSISTANCE BUDGETARY IMPACTS CAPITAL ACCOUNT CAPITAL MARKET COMMODITY COMPARATIVE ADVANTAGE COMPARATIVE ANALYSES COMPARATIVE ANALYSIS COMPETITIVENESS COMPUTABLE GENERAL EQUILIBRIUM CONSUMERS CURRENCY CURRENCY APPRECIATION CURRENT ACCOUNT BALANCE DEFICITS DISTRIBUTIONAL IMPACT DIVIDENDS ECONOMIC GROWTH ECONOMIC SECTORS ECONOMIC STRUCTURE ECONOMIC STRUCTURES ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EQUATIONS EQUILIBRIUM EXCHANGE RATE EXCHANGE RATE ADJUSTMENTS EXPENDITURE EXPENDITURES EXPORT PERFORMANCE EXPORT SECTOR EXPORTS EXTERNALITIES EXTERNALITY FACTOR MARKETS FISCAL POLICIES FISCAL POLICY FISCAL SUSTAINABILITY FIXED SHARE FIXED SHARES FUND INVESTMENT GDP GDP DEFLATOR GOVERNMENT BUDGET GOVERNMENT BUDGET CONSTRAINT GOVERNMENT CONSUMPTION GOVERNMENT EXPENDITURE GOVERNMENT INVESTMENTS GOVERNMENT REVENUE GOVERNMENT REVENUES GOVERNMENT SAVINGS GOVERNMENT SPENDING GOVERNMENT SUBSIDIES HOUSEHOLD INCOME IMPORT DUTIES INCOME INCOME EFFECT INCOME TAX INCOME TAXES INFRASTRUCTURE EXPENDITURE INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INTERNATIONAL BANK INTERNATIONAL ECONOMICS INVESTING INVESTMENT EXPENDITURE INVESTMENT GROWTH INVESTMENT NEEDS INVESTMENT OPTION INVESTMENT STRATEGIES LABOR MARKET LOCAL MARKET LOW-INCOME COUNTRIES MACROECONOMIC VARIABLES MACROECONOMICS MARKET PRICE MARKET PRICES MONETARY FUND NATIONAL ACCOUNTS NEGATIVE VALUE OPERATIONAL COSTS OPERATIONAL EXPENDITURES POSITIVE EFFECTS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY PRICE INDEX PRIVATE FIRMS PRIVATE INVESTMENT PRIVATE SAVINGS PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION STRUCTURE PRODUCTIVE INVESTMENT PRODUCTIVE INVESTMENTS PRODUCTIVITY PUBLIC CAPITAL PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SERVICES REAL EXCHANGE RATE REAL EXCHANGE RATES ROAD CONSTRUCTION SANITATION SUBSTITUTION EFFECT SUSTAINABLE DEVELOPMENT TAX TAX RATE TAX RATES TAXATION TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT UNEMPLOYMENT UTILITY FUNCTION VALUE ADDED WAGES WORLD MARKET |
| spellingShingle |
ACCOUNTING ADVERSE EFFECT AFFILIATED ORGANIZATIONS AGRICULTURE BANK POLICY BASELINE SCENARIO BUDGET CONSTRAINT BUDGET CONSTRAINTS BUDGETARY ASSISTANCE BUDGETARY IMPACTS CAPITAL ACCOUNT CAPITAL MARKET COMMODITY COMPARATIVE ADVANTAGE COMPARATIVE ANALYSES COMPARATIVE ANALYSIS COMPETITIVENESS COMPUTABLE GENERAL EQUILIBRIUM CONSUMERS CURRENCY CURRENCY APPRECIATION CURRENT ACCOUNT BALANCE DEFICITS DISTRIBUTIONAL IMPACT DIVIDENDS ECONOMIC GROWTH ECONOMIC SECTORS ECONOMIC STRUCTURE ECONOMIC STRUCTURES ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EQUATIONS EQUILIBRIUM EXCHANGE RATE EXCHANGE RATE ADJUSTMENTS EXPENDITURE EXPENDITURES EXPORT PERFORMANCE EXPORT SECTOR EXPORTS EXTERNALITIES EXTERNALITY FACTOR MARKETS FISCAL POLICIES FISCAL POLICY FISCAL SUSTAINABILITY FIXED SHARE FIXED SHARES FUND INVESTMENT GDP GDP DEFLATOR GOVERNMENT BUDGET GOVERNMENT BUDGET CONSTRAINT GOVERNMENT CONSUMPTION GOVERNMENT EXPENDITURE GOVERNMENT INVESTMENTS GOVERNMENT REVENUE GOVERNMENT REVENUES GOVERNMENT SAVINGS GOVERNMENT SPENDING GOVERNMENT SUBSIDIES HOUSEHOLD INCOME IMPORT DUTIES INCOME INCOME EFFECT INCOME TAX INCOME TAXES INFRASTRUCTURE EXPENDITURE INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INTERNATIONAL BANK INTERNATIONAL ECONOMICS INVESTING INVESTMENT EXPENDITURE INVESTMENT GROWTH INVESTMENT NEEDS INVESTMENT OPTION INVESTMENT STRATEGIES LABOR MARKET LOCAL MARKET LOW-INCOME COUNTRIES MACROECONOMIC VARIABLES MACROECONOMICS MARKET PRICE MARKET PRICES MONETARY FUND NATIONAL ACCOUNTS NEGATIVE VALUE OPERATIONAL COSTS OPERATIONAL EXPENDITURES POSITIVE EFFECTS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY PRICE INDEX PRIVATE FIRMS PRIVATE INVESTMENT PRIVATE SAVINGS PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION STRUCTURE PRODUCTIVE INVESTMENT PRODUCTIVE INVESTMENTS PRODUCTIVITY PUBLIC CAPITAL PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SERVICES REAL EXCHANGE RATE REAL EXCHANGE RATES ROAD CONSTRUCTION SANITATION SUBSTITUTION EFFECT SUSTAINABLE DEVELOPMENT TAX TAX RATE TAX RATES TAXATION TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT UNEMPLOYMENT UTILITY FUNCTION VALUE ADDED WAGES WORLD MARKET Perrault, Jean-François Savard, Luc Estache, Antonio The Impact of Infrastructure Spending in Sub-Saharan Africa : A CGE Modeling Approach |
| geographic_facet |
Africa Africa Africa |
| relation |
Policy Research working paper ; no. WPS 5386 |
| description |
The authors constructed a standard
computable general equilibrium (CGE) model to explore the
economic impact of increased spending on infrastructure in
six African countries: Benin, Cameroon, Mali, Senegal,
Tanzania, and Uganda. The basic elements of the model are
drawn from EXTER, adjusted to accommodate infrastructure
externalities. Seven sectors were considered: food crop
agriculture, export agriculture, mining and oil,
manufacturing, construction, private services, and public
services. Four sets of simulations were conducted: baseline
nonproductive investments, roads, electricity, and telecoms.
For each set of simulations, five funding schemes were
considered: reduced public expenditure; increased
value-added taxes; increased import duties; funding from
foreign aid; and increased income taxes. In general, the
funding schemes had similar qualitative and quantitative
effects on macro variables. For road and electricity
investment, there were relatively large quantitative
differences and some qualitative differences among funding
schemes at the macro level. Sectoral analysis revealed
further disparities among countries and investment types.
The same type of investment with the same funding sources
had varying effects depending on the economic structure of
the sector in question. The authors find that few sectors
are purely tradable or non-tradable, having instead variable
degrees of openness to trade. If the current account needs
to be balanced, funding investment through foreign aid
produces the strongest sectoral effects because strong price
and nominal exchange rate adjustments are needed to clear
the current account balance. In addition, the capital/labor
ratio of each sector plays an important role in determining
its winners and losers. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Perrault, Jean-François Savard, Luc Estache, Antonio |
| author_facet |
Perrault, Jean-François Savard, Luc Estache, Antonio |
| author_sort |
Perrault, Jean-François |
| title |
The Impact of Infrastructure Spending in Sub-Saharan Africa : A CGE Modeling Approach |
| title_short |
The Impact of Infrastructure Spending in Sub-Saharan Africa : A CGE Modeling Approach |
| title_full |
The Impact of Infrastructure Spending in Sub-Saharan Africa : A CGE Modeling Approach |
| title_fullStr |
The Impact of Infrastructure Spending in Sub-Saharan Africa : A CGE Modeling Approach |
| title_full_unstemmed |
The Impact of Infrastructure Spending in Sub-Saharan Africa : A CGE Modeling Approach |
| title_sort |
impact of infrastructure spending in sub-saharan africa : a cge modeling approach |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100728140341 http://hdl.handle.net/10986/3870 |
| _version_ |
1764388762795638784 |
| spelling |
okr-10986-38702021-04-23T14:02:13Z The Impact of Infrastructure Spending in Sub-Saharan Africa : A CGE Modeling Approach Perrault, Jean-François Savard, Luc Estache, Antonio ACCOUNTING ADVERSE EFFECT AFFILIATED ORGANIZATIONS AGRICULTURE BANK POLICY BASELINE SCENARIO BUDGET CONSTRAINT BUDGET CONSTRAINTS BUDGETARY ASSISTANCE BUDGETARY IMPACTS CAPITAL ACCOUNT CAPITAL MARKET COMMODITY COMPARATIVE ADVANTAGE COMPARATIVE ANALYSES COMPARATIVE ANALYSIS COMPETITIVENESS COMPUTABLE GENERAL EQUILIBRIUM CONSUMERS CURRENCY CURRENCY APPRECIATION CURRENT ACCOUNT BALANCE DEFICITS DISTRIBUTIONAL IMPACT DIVIDENDS ECONOMIC GROWTH ECONOMIC SECTORS ECONOMIC STRUCTURE ECONOMIC STRUCTURES ELASTICITIES ELASTICITY ELASTICITY OF SUBSTITUTION EQUATIONS EQUILIBRIUM EXCHANGE RATE EXCHANGE RATE ADJUSTMENTS EXPENDITURE EXPENDITURES EXPORT PERFORMANCE EXPORT SECTOR EXPORTS EXTERNALITIES EXTERNALITY FACTOR MARKETS FISCAL POLICIES FISCAL POLICY FISCAL SUSTAINABILITY FIXED SHARE FIXED SHARES FUND INVESTMENT GDP GDP DEFLATOR GOVERNMENT BUDGET GOVERNMENT BUDGET CONSTRAINT GOVERNMENT CONSUMPTION GOVERNMENT EXPENDITURE GOVERNMENT INVESTMENTS GOVERNMENT REVENUE GOVERNMENT REVENUES GOVERNMENT SAVINGS GOVERNMENT SPENDING GOVERNMENT SUBSIDIES HOUSEHOLD INCOME IMPORT DUTIES INCOME INCOME EFFECT INCOME TAX INCOME TAXES INFRASTRUCTURE EXPENDITURE INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INTERNATIONAL BANK INTERNATIONAL ECONOMICS INVESTING INVESTMENT EXPENDITURE INVESTMENT GROWTH INVESTMENT NEEDS INVESTMENT OPTION INVESTMENT STRATEGIES LABOR MARKET LOCAL MARKET LOW-INCOME COUNTRIES MACROECONOMIC VARIABLES MACROECONOMICS MARKET PRICE MARKET PRICES MONETARY FUND NATIONAL ACCOUNTS NEGATIVE VALUE OPERATIONAL COSTS OPERATIONAL EXPENDITURES POSITIVE EFFECTS POSITIVE EXTERNALITIES POSITIVE EXTERNALITY PRICE INDEX PRIVATE FIRMS PRIVATE INVESTMENT PRIVATE SAVINGS PRIVATE SECTOR PRODUCTION FUNCTION PRODUCTION STRUCTURE PRODUCTIVE INVESTMENT PRODUCTIVE INVESTMENTS PRODUCTIVITY PUBLIC CAPITAL PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC INVESTMENTS PUBLIC SERVICES REAL EXCHANGE RATE REAL EXCHANGE RATES ROAD CONSTRUCTION SANITATION SUBSTITUTION EFFECT SUSTAINABLE DEVELOPMENT TAX TAX RATE TAX RATES TAXATION TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT UNEMPLOYMENT UTILITY FUNCTION VALUE ADDED WAGES WORLD MARKET The authors constructed a standard computable general equilibrium (CGE) model to explore the economic impact of increased spending on infrastructure in six African countries: Benin, Cameroon, Mali, Senegal, Tanzania, and Uganda. The basic elements of the model are drawn from EXTER, adjusted to accommodate infrastructure externalities. Seven sectors were considered: food crop agriculture, export agriculture, mining and oil, manufacturing, construction, private services, and public services. Four sets of simulations were conducted: baseline nonproductive investments, roads, electricity, and telecoms. For each set of simulations, five funding schemes were considered: reduced public expenditure; increased value-added taxes; increased import duties; funding from foreign aid; and increased income taxes. In general, the funding schemes had similar qualitative and quantitative effects on macro variables. For road and electricity investment, there were relatively large quantitative differences and some qualitative differences among funding schemes at the macro level. Sectoral analysis revealed further disparities among countries and investment types. The same type of investment with the same funding sources had varying effects depending on the economic structure of the sector in question. The authors find that few sectors are purely tradable or non-tradable, having instead variable degrees of openness to trade. If the current account needs to be balanced, funding investment through foreign aid produces the strongest sectoral effects because strong price and nominal exchange rate adjustments are needed to clear the current account balance. In addition, the capital/labor ratio of each sector plays an important role in determining its winners and losers. 2012-03-19T18:41:16Z 2012-03-19T18:41:16Z 2010-07-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100728140341 http://hdl.handle.net/10986/3870 English Policy Research working paper ; no. WPS 5386 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Africa Africa Africa |