Economic reforms and pro-poor growth: A macro-micro application to the Philippines

An important pro-poor growth literature has emerged in the context of the millennium development goals and poverty reduction strategy papers. Most of this literature relies on partial equilibrium analysis for their applications. Moreover, few researches attempted to analyse policy coherence in this context. In this paper we deal with these issues in a macro/micro computable general equilibrium model. We applied our model to the Philippines and allow for growth through endogenous labour supply and externalities of public expenditures. Our results of standard fiscal reform proposed in developing countries illustrate the importance of including general equilibrium effect in the analysis and to take into account country specificities when formulating policy recommendations.