Economic impacts of infrastructure investment with different funding mechanisms: evidence from Guinea-Bissau
This study aims to analyze the economic impacts of infrastructure investment in Africa, focusing on the Guinea-Bissau economy. Through a dynamic CGE model, we find that the natural resource revenues (or aid)-funded infrastructure investments generate externalities that increase factor returns. The p...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2022.2101226 |
| _version_ | 1811218279160610816 |
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| author | Júlio Vicente Cateia Luc Savard Clailton Ataídes de Freitas |
| author_facet | Júlio Vicente Cateia Luc Savard Clailton Ataídes de Freitas |
| author_sort | Júlio Vicente Cateia |
| collection | DOAJ |
| description | This study aims to analyze the economic impacts of infrastructure investment in Africa, focusing on the Guinea-Bissau economy. Through a dynamic CGE model, we find that the natural resource revenues (or aid)-funded infrastructure investments generate externalities that increase factor returns. The private investment improvements propagate externalities effects on GDP and job opportunities outcomes. Household income and consumption were positively impacted, though the poorer benefited the most. The income inequality has reduced. However, funding by the mix of debt and direct taxes produces opposite effects. We suggest a potential pro-poor growth agenda in Africa. |
| first_indexed | 2024-04-12T07:07:09Z |
| format | Article |
| id | doaj.art-5383b1593b5747dead73d052da65cd06 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-04-12T07:07:09Z |
| publishDate | 2022-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-5383b1593b5747dead73d052da65cd062022-12-22T03:42:45ZengTaylor & Francis GroupCogent Economics & Finance2332-20392022-12-0110110.1080/23322039.2022.2101226Economic impacts of infrastructure investment with different funding mechanisms: evidence from Guinea-BissauJúlio Vicente Cateia0Luc Savard1Clailton Ataídes de Freitas2Department of Economics (Postdoc fellow), Laval University, 1245 Rue de la Colline, L’Ancienne-Lorette, QC, CanadaAfrica Institute for Research in Economics & Social Sciences (AIRESS), Mohammed VI Polytechnic University, Technopolis, MoroccoMaria Department of Economics and International Relations, Graduate Program in Economics and Development, Federal University of Santa Maria, Santa Maria, RS, BrazilThis study aims to analyze the economic impacts of infrastructure investment in Africa, focusing on the Guinea-Bissau economy. Through a dynamic CGE model, we find that the natural resource revenues (or aid)-funded infrastructure investments generate externalities that increase factor returns. The private investment improvements propagate externalities effects on GDP and job opportunities outcomes. Household income and consumption were positively impacted, though the poorer benefited the most. The income inequality has reduced. However, funding by the mix of debt and direct taxes produces opposite effects. We suggest a potential pro-poor growth agenda in Africa.https://www.tandfonline.com/doi/10.1080/23322039.2022.2101226infrastructure investmentpoverty alleviationCGE modelingAfrican economiesapplied economicsC68 |
| spellingShingle | Júlio Vicente Cateia Luc Savard Clailton Ataídes de Freitas Economic impacts of infrastructure investment with different funding mechanisms: evidence from Guinea-Bissau Cogent Economics & Finance infrastructure investment poverty alleviation CGE modeling African economies applied economics C68 |
| title | Economic impacts of infrastructure investment with different funding mechanisms: evidence from Guinea-Bissau |
| title_full | Economic impacts of infrastructure investment with different funding mechanisms: evidence from Guinea-Bissau |
| title_fullStr | Economic impacts of infrastructure investment with different funding mechanisms: evidence from Guinea-Bissau |
| title_full_unstemmed | Economic impacts of infrastructure investment with different funding mechanisms: evidence from Guinea-Bissau |
| title_short | Economic impacts of infrastructure investment with different funding mechanisms: evidence from Guinea-Bissau |
| title_sort | economic impacts of infrastructure investment with different funding mechanisms evidence from guinea bissau |
| topic | infrastructure investment poverty alleviation CGE modeling African economies applied economics C68 |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2022.2101226 |
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