Governments encourage growth through various policies: infrastructure, education, training, health, agricultural extension, trade, etc. Each strategy has wide-ranging impacts on the entire economy - sectoral production, wages and other factor returns, consumer prices, public finances, etc. - with very different distributive consequences and welfare impacts for the concerned populations.
In 2010, PEP was commissioned by the Australian Agency for International Development (AusAID) to lead small teams of local researchers in a special research initiative that aimed to analyze such interactions and consequences in different countries – China, Pakistan and the Philippines. By building these "motors of growth" into country-specific economy-wide models linked to household survey-based microsimulation models, the researchers simulate the distributive impacts of infrastructure investments and alternative financing mechanisms, and provide insights on accompanying policies to allow greater participation by the poor.
The project was carried out in collaboration with an international coordinating team of experienced researchers in macro and micro-modeling techniques, whose contributions in terms of methodological developments are also expected to serve internationally as a new resource for both researchers and decision-makers to assist in related policymaking.
In 2013, the outcomes of the different components of this initiative were compiled and published as a book, which you may find and download here, free of charge:
Editors: John Cockburn, Yazid Dissou, Jean-Yves Duclos, Luca Tiberti
All PEP books are made available for download, free of charge - find them here: http://www.pep-net.org/communications/pep-books/
Find out more about this particular PEP-AusAID research initiative, here: http://www.pep-net.org/programs/mpia/special-initiatives/special-initiative-growth/
Find more PEP special research and capacity building program initiatives, here: http://www.pep-net.org/special-research-initiatives/