Evaluation pro-poor growth enhancing investments in infrastructure
and rural development requires comprehensive appraisal tools.
Traditional methods have taken a project or sector perspective that
did not capture economy-wide effects. However, in addition to
inter-sectoral effects, large-scale investments can also have
long-term impacts on national capital formation, the government
budget and the foreign trade balance. This study builds a
computable general equilibrium model and links it to a
micro-accounting module for poverty analysis in Vietnam. The
spatial dimension is captured by incorporating two regions into the
model: the lagging mountainous province of Son La is compared to
the rest of Vietnam. This model is applied to several
infrastructure investments and identifies economic growth rates
that would be needed to achieve the first Millennium Development
Goal.
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