Production and Productive Sectors Simulations in a CGE model for Haiti
- Increased total factor productivity in agriculture leads to higher output but reduces labor and capital use in that sector.
- Government investment in infrastructure boosts GDP growth, especially when financed by foreign borrowing.
- Expansion of tourism demand increases household income but can deteriorate the trade balance due to real exchange rate appreciation.
- Textiles, wearing apparel, and leather sectors benefit most from TFP and infrastructure improvements due to their high export-to-output ratio.
- Poverty rates decrease with improvements in agriculture infrastructure and increased employment.
This document presents simulations related to production and productive sectors in Haiti, analyzing results for both a Computable General Equilibrium (CGE) model and a microsimulation model. The study examines the effects of increased exogenous total factor productivity growth in various sectors, including agriculture, manufacturing, and services. It also considers increases in government investment in agriculture and transport infrastructure, financed through different sources: direct taxes, domestic borrowing, and foreign borrowing. Furthermore, the document assesses the effects of an exogenous increase in foreign tourism arrivals on the Haitian economy.
How to cite
Inter-American Development Bank (IDB), 2019, Production and Productive Sectors Simulations in a CGE model for Haiti, https://publications.iadb.org/en/production-and-productive-sectors-simulations-cge-model-haiti