Distributional Effects of the Panama Canal Expansion
This paper uses a dynamic macro-micro framework to evaluate the potential distributional effects of the expansion of the Panama Canal. The results show that large macroeconomic effects are only likely during the operations phase (2014 and onward),...
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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_20111020102130 http://hdl.handle.net/10986/3615 |
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okr-10986-3615 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
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English |
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ACCOUNTING AGRICULTURE AVERAGE WAGE AVERAGE WAGES BASE YEAR BORROWING CAPITAL ACCUMULATION CAPITAL MARKETS CAPITAL RETURNS CAPITAL STOCK CD COMMERCE COMMODITIES COMMODITY COMPETITIVE LABOR MARKETS COMPETITIVENESS CONSTANT RETURNS TO SCALE CONSUMER GOODS CONSUMER PRICE CONSUMER PRICE INDEX CONSUMER PRICES CONSUMERS CORPORATE TAX CURRENT ACCOUNT BALANCE DEBT DEMAND CURVE DEVELOPMENT POLICY DISPOSABLE INCOME DISTRIBUTION OF INCOME DISTRIBUTION OF INCOMES DIVIDENDS DOMESTIC MARKET DOMESTIC PRICES DUAL ECONOMY EARNING ECONOMIC BOOM ECONOMIC STRUCTURE ECONOMICS EDUCATIONAL ATTAINMENT EDUCATIONAL SERVICES ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EFFECT EMPLOYMENT EFFECTS EMPLOYMENT MULTIPLIER EMPLOYMENT STATUS ENDOGENOUS VARIABLES EQUILIBRIUM ESTIMATED PARAMETER EXCHANGE RATE EXOGENOUS VARIABLES EXPECTED VALUE EXPECTED WAGE EXPENDITURE EXPORT MARKETS EXPORT SECTORS EXPORTS EXTERNAL COMPETITIVENESS EXTREME POVERTY FACTOR MARKETS FACTOR PRICE FACTOR PRICES FINANCIAL MARKETS FINANCIAL SERVICES FOOD PRICES FORECASTS FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN FIRMS FORMAL SECTOR WAGES FORMAL SECTOR WORKERS FULL EMPLOYMENT FUTURE RESEARCH GDP DEFLATOR GDP PER CAPITA GENERAL EQUILIBRIUM GINI COEFFICIENT GOVERNMENT BUDGET GOVERNMENT EXPENDITURES GROWTH RATE GROWTH RATES HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS INCOME INCOME DISTRIBUTION INCOME EFFECT INCOME INEQUALITY INCOME TAX INFORMAL SECTOR INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE PROJECT INFRASTRUCTURE PROJECTS INTERMEDIATE GOODS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL MIGRATION INTERNATIONAL TRADE JOB CREATION JOBS LABOR ALLOCATION LABOR COSTS LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET SEGMENTATION LABOR MARKETS LABOR MOBILITY LABOR MOVEMENT LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REALLOCATION LABOR SUPPLY LABOUR LIVING STANDARDS MACROECONOMIC EFFECTS MACROECONOMIC POLICIES MARGINAL PROPENSITY TO SAVE MARKET PRICE MARKET PRICES MARKET SEGMENT MARKET SEGMENTS MARKET SUPPLY MINIMUM WAGE MONOPOLY MULTIPLIER EFFECT MULTIPLIER EFFECTS NATURAL RESOURCE NET EMPLOYMENT OCCUPATIONS PENSIONS PER CAPITA INCOME PER CAPITA INCOMES PERFECT COMPETITION POVERTY ALLEVIATION PREVIOUS SECTION PRICE CHANGES PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRICE INFLATION PRIMARY SOURCE PRIVATE INVESTMENT PRODUCER PRICE PRODUCTION OUTPUT PRODUCTIVITY PRODUCTIVITY EFFECTS PRODUCTIVITY GROWTH PUBLIC SERVICE PUBLIC SERVICES RAPID GROWTH RATE OF GROWTH RATE OF RETURN RATE OF RETURN TO CAPITAL REAL GDP REAL INCOME REAL WAGES RENTS RISK AVERSION RISK-AVERSE INDIVIDUALS RURAL INFRASTRUCTURE RURAL LABOR RURAL POVERTY SALES SAVINGS SERVICE SECTORS SKILL PREMIUM SKILLED WAGE PREMIUM SKILLED WORKERS SMALL COUNTRY SPREAD SUBSTITUTE TAX TAX RATE TAX RATES TAX REVENUES TAXATION TECHNOLOGICAL CHANGE TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT UNEMPLOYED UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT RATE UNSKILLED LABOR UNSKILLED WORKERS URBANIZATION UTILITY FUNCTION VALUE ADDED WAGE DIFFERENTIALS WAGE EFFECTS WAGE GAP WAGE GROWTH WAGE LEVELS WAGE RATE WAGE SUBSIDY WAGES WORKER WORLD TRADE WORLD TRADE ORGANIZATION |
| spellingShingle |
ACCOUNTING AGRICULTURE AVERAGE WAGE AVERAGE WAGES BASE YEAR BORROWING CAPITAL ACCUMULATION CAPITAL MARKETS CAPITAL RETURNS CAPITAL STOCK CD COMMERCE COMMODITIES COMMODITY COMPETITIVE LABOR MARKETS COMPETITIVENESS CONSTANT RETURNS TO SCALE CONSUMER GOODS CONSUMER PRICE CONSUMER PRICE INDEX CONSUMER PRICES CONSUMERS CORPORATE TAX CURRENT ACCOUNT BALANCE DEBT DEMAND CURVE DEVELOPMENT POLICY DISPOSABLE INCOME DISTRIBUTION OF INCOME DISTRIBUTION OF INCOMES DIVIDENDS DOMESTIC MARKET DOMESTIC PRICES DUAL ECONOMY EARNING ECONOMIC BOOM ECONOMIC STRUCTURE ECONOMICS EDUCATIONAL ATTAINMENT EDUCATIONAL SERVICES ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EFFECT EMPLOYMENT EFFECTS EMPLOYMENT MULTIPLIER EMPLOYMENT STATUS ENDOGENOUS VARIABLES EQUILIBRIUM ESTIMATED PARAMETER EXCHANGE RATE EXOGENOUS VARIABLES EXPECTED VALUE EXPECTED WAGE EXPENDITURE EXPORT MARKETS EXPORT SECTORS EXPORTS EXTERNAL COMPETITIVENESS EXTREME POVERTY FACTOR MARKETS FACTOR PRICE FACTOR PRICES FINANCIAL MARKETS FINANCIAL SERVICES FOOD PRICES FORECASTS FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN FIRMS FORMAL SECTOR WAGES FORMAL SECTOR WORKERS FULL EMPLOYMENT FUTURE RESEARCH GDP DEFLATOR GDP PER CAPITA GENERAL EQUILIBRIUM GINI COEFFICIENT GOVERNMENT BUDGET GOVERNMENT EXPENDITURES GROWTH RATE GROWTH RATES HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS INCOME INCOME DISTRIBUTION INCOME EFFECT INCOME INEQUALITY INCOME TAX INFORMAL SECTOR INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE PROJECT INFRASTRUCTURE PROJECTS INTERMEDIATE GOODS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL MIGRATION INTERNATIONAL TRADE JOB CREATION JOBS LABOR ALLOCATION LABOR COSTS LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET SEGMENTATION LABOR MARKETS LABOR MOBILITY LABOR MOVEMENT LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REALLOCATION LABOR SUPPLY LABOUR LIVING STANDARDS MACROECONOMIC EFFECTS MACROECONOMIC POLICIES MARGINAL PROPENSITY TO SAVE MARKET PRICE MARKET PRICES MARKET SEGMENT MARKET SEGMENTS MARKET SUPPLY MINIMUM WAGE MONOPOLY MULTIPLIER EFFECT MULTIPLIER EFFECTS NATURAL RESOURCE NET EMPLOYMENT OCCUPATIONS PENSIONS PER CAPITA INCOME PER CAPITA INCOMES PERFECT COMPETITION POVERTY ALLEVIATION PREVIOUS SECTION PRICE CHANGES PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRICE INFLATION PRIMARY SOURCE PRIVATE INVESTMENT PRODUCER PRICE PRODUCTION OUTPUT PRODUCTIVITY PRODUCTIVITY EFFECTS PRODUCTIVITY GROWTH PUBLIC SERVICE PUBLIC SERVICES RAPID GROWTH RATE OF GROWTH RATE OF RETURN RATE OF RETURN TO CAPITAL REAL GDP REAL INCOME REAL WAGES RENTS RISK AVERSION RISK-AVERSE INDIVIDUALS RURAL INFRASTRUCTURE RURAL LABOR RURAL POVERTY SALES SAVINGS SERVICE SECTORS SKILL PREMIUM SKILLED WAGE PREMIUM SKILLED WORKERS SMALL COUNTRY SPREAD SUBSTITUTE TAX TAX RATE TAX RATES TAX REVENUES TAXATION TECHNOLOGICAL CHANGE TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT UNEMPLOYED UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT RATE UNSKILLED LABOR UNSKILLED WORKERS URBANIZATION UTILITY FUNCTION VALUE ADDED WAGE DIFFERENTIALS WAGE EFFECTS WAGE GAP WAGE GROWTH WAGE LEVELS WAGE RATE WAGE SUBSIDY WAGES WORKER WORLD TRADE WORLD TRADE ORGANIZATION Bussolo, Maurizio De Hoyos, Rafael E. Medvedev, Denis Distributional Effects of the Panama Canal Expansion |
| geographic_facet |
Latin America & Caribbean Latin America & Caribbean Central America America Panama |
| relation |
Policy Research working paper ; no. WPS 5848 |
| description |
This paper uses a dynamic macro-micro
framework to evaluate the potential distributional effects
of the expansion of the Panama Canal. The results show that
large macroeconomic effects are only likely during the
operations phase (2014 and onward), and income gains are
likely to be concentrated at the top of the income
distribution. The additional foreign exchange inflows during
the construction and operations phases result in the loss of
competitiveness of non-Canal sectors (Dutch disease) and in
higher domestic prices, which hurt the poorest consumers. In
addition, the construction and operation activities increase
demand for more educated non-farm formal workers. Although
these changes encourage additional labor movement out of
agriculture and from the informal to the formal sector, much
of the impact is manifested in growing wage disparities and
widening income inequality. Using the additional revenues of
the Canal expansion in a targeted cash transfer program such
as "Red de Oportunidades", the Government of
Panama could offset the adverse distributional effects and
eradicate extreme poverty. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Bussolo, Maurizio De Hoyos, Rafael E. Medvedev, Denis |
| author_facet |
Bussolo, Maurizio De Hoyos, Rafael E. Medvedev, Denis |
| author_sort |
Bussolo, Maurizio |
| title |
Distributional Effects of the Panama Canal Expansion |
| title_short |
Distributional Effects of the Panama Canal Expansion |
| title_full |
Distributional Effects of the Panama Canal Expansion |
| title_fullStr |
Distributional Effects of the Panama Canal Expansion |
| title_full_unstemmed |
Distributional Effects of the Panama Canal Expansion |
| title_sort |
distributional effects of the panama canal expansion |
| 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_20111020102130 http://hdl.handle.net/10986/3615 |
| _version_ |
1764387452425863168 |
| spelling |
okr-10986-36152021-04-23T14:02:11Z Distributional Effects of the Panama Canal Expansion Bussolo, Maurizio De Hoyos, Rafael E. Medvedev, Denis ACCOUNTING AGRICULTURE AVERAGE WAGE AVERAGE WAGES BASE YEAR BORROWING CAPITAL ACCUMULATION CAPITAL MARKETS CAPITAL RETURNS CAPITAL STOCK CD COMMERCE COMMODITIES COMMODITY COMPETITIVE LABOR MARKETS COMPETITIVENESS CONSTANT RETURNS TO SCALE CONSUMER GOODS CONSUMER PRICE CONSUMER PRICE INDEX CONSUMER PRICES CONSUMERS CORPORATE TAX CURRENT ACCOUNT BALANCE DEBT DEMAND CURVE DEVELOPMENT POLICY DISPOSABLE INCOME DISTRIBUTION OF INCOME DISTRIBUTION OF INCOMES DIVIDENDS DOMESTIC MARKET DOMESTIC PRICES DUAL ECONOMY EARNING ECONOMIC BOOM ECONOMIC STRUCTURE ECONOMICS EDUCATIONAL ATTAINMENT EDUCATIONAL SERVICES ELASTICITY ELASTICITY OF SUBSTITUTION EMPLOYMENT EFFECT EMPLOYMENT EFFECTS EMPLOYMENT MULTIPLIER EMPLOYMENT STATUS ENDOGENOUS VARIABLES EQUILIBRIUM ESTIMATED PARAMETER EXCHANGE RATE EXOGENOUS VARIABLES EXPECTED VALUE EXPECTED WAGE EXPENDITURE EXPORT MARKETS EXPORT SECTORS EXPORTS EXTERNAL COMPETITIVENESS EXTREME POVERTY FACTOR MARKETS FACTOR PRICE FACTOR PRICES FINANCIAL MARKETS FINANCIAL SERVICES FOOD PRICES FORECASTS FOREIGN CURRENCY FOREIGN EXCHANGE FOREIGN FIRMS FORMAL SECTOR WAGES FORMAL SECTOR WORKERS FULL EMPLOYMENT FUTURE RESEARCH GDP DEFLATOR GDP PER CAPITA GENERAL EQUILIBRIUM GINI COEFFICIENT GOVERNMENT BUDGET GOVERNMENT EXPENDITURES GROWTH RATE GROWTH RATES HOUSEHOLD CHARACTERISTICS HOUSEHOLD CONSUMPTION HOUSEHOLD INCOME HOUSEHOLD SURVEY HOUSEHOLD SURVEYS INCOME INCOME DISTRIBUTION INCOME EFFECT INCOME INEQUALITY INCOME TAX INFORMAL SECTOR INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE PROJECT INFRASTRUCTURE PROJECTS INTERMEDIATE GOODS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL MIGRATION INTERNATIONAL TRADE JOB CREATION JOBS LABOR ALLOCATION LABOR COSTS LABOR DEMAND LABOR FORCE LABOR MARKET LABOR MARKET SEGMENTATION LABOR MARKETS LABOR MOBILITY LABOR MOVEMENT LABOR PRODUCTIVITY LABOR PRODUCTIVITY GROWTH LABOR REALLOCATION LABOR SUPPLY LABOUR LIVING STANDARDS MACROECONOMIC EFFECTS MACROECONOMIC POLICIES MARGINAL PROPENSITY TO SAVE MARKET PRICE MARKET PRICES MARKET SEGMENT MARKET SEGMENTS MARKET SUPPLY MINIMUM WAGE MONOPOLY MULTIPLIER EFFECT MULTIPLIER EFFECTS NATURAL RESOURCE NET EMPLOYMENT OCCUPATIONS PENSIONS PER CAPITA INCOME PER CAPITA INCOMES PERFECT COMPETITION POVERTY ALLEVIATION PREVIOUS SECTION PRICE CHANGES PRICE ELASTICITY PRICE ELASTICITY OF DEMAND PRICE INFLATION PRIMARY SOURCE PRIVATE INVESTMENT PRODUCER PRICE PRODUCTION OUTPUT PRODUCTIVITY PRODUCTIVITY EFFECTS PRODUCTIVITY GROWTH PUBLIC SERVICE PUBLIC SERVICES RAPID GROWTH RATE OF GROWTH RATE OF RETURN RATE OF RETURN TO CAPITAL REAL GDP REAL INCOME REAL WAGES RENTS RISK AVERSION RISK-AVERSE INDIVIDUALS RURAL INFRASTRUCTURE RURAL LABOR RURAL POVERTY SALES SAVINGS SERVICE SECTORS SKILL PREMIUM SKILLED WAGE PREMIUM SKILLED WORKERS SMALL COUNTRY SPREAD SUBSTITUTE TAX TAX RATE TAX RATES TAX REVENUES TAXATION TECHNOLOGICAL CHANGE TOTAL EMPLOYMENT TOTAL FACTOR PRODUCTIVITY TOTAL OUTPUT UNEMPLOYED UNEMPLOYED WORKERS UNEMPLOYMENT UNEMPLOYMENT RATE UNSKILLED LABOR UNSKILLED WORKERS URBANIZATION UTILITY FUNCTION VALUE ADDED WAGE DIFFERENTIALS WAGE EFFECTS WAGE GAP WAGE GROWTH WAGE LEVELS WAGE RATE WAGE SUBSIDY WAGES WORKER WORLD TRADE WORLD TRADE ORGANIZATION This paper uses a dynamic macro-micro framework to evaluate the potential distributional effects of the expansion of the Panama Canal. The results show that large macroeconomic effects are only likely during the operations phase (2014 and onward), and income gains are likely to be concentrated at the top of the income distribution. The additional foreign exchange inflows during the construction and operations phases result in the loss of competitiveness of non-Canal sectors (Dutch disease) and in higher domestic prices, which hurt the poorest consumers. In addition, the construction and operation activities increase demand for more educated non-farm formal workers. Although these changes encourage additional labor movement out of agriculture and from the informal to the formal sector, much of the impact is manifested in growing wage disparities and widening income inequality. Using the additional revenues of the Canal expansion in a targeted cash transfer program such as "Red de Oportunidades", the Government of Panama could offset the adverse distributional effects and eradicate extreme poverty. 2012-03-19T18:05:36Z 2012-03-19T18:05:36Z 2011-10-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111020102130 http://hdl.handle.net/10986/3615 English Policy Research working paper ; no. WPS 5848 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Latin America & Caribbean Latin America & Caribbean Central America America Panama |