Road Infrastructure, Foreign Direct Investment and Economic Growth: The Philippine Case

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Mar 7, 2010 — Neil Boyle

Economic Impact Study Philippines March 2010
This paper is authored by Dr. Ramon L. Clarete and Arlan I. Brucal.  Dr. Clarete is a Professor at the University of the Philippines School of Economics  and is profiled in the “About INFRAGOV LLC and SERVICES” posting on this website.  Mr. Brucal is an economic researcher from the USAID supported LINC-EG project.  The paper assesses the economic contribution of road infrastructure development in the Philippines.  While a good road system directly increases the profitability of exising industries as well as attract new direct investments including foreign direct investments (FDI), the approach taken by the paper is to first assess the ability of  a good road system to attract foreign businesses.  The Philippines has lagged behind its neighbors in getting multinational companies to set up their businesses in country.  The paper then estimates how the incremental FDIs push overall performance of the Philippine economy.  To read the paper, click on the link above.

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