Mexico: Selected Issues

November 5, 2019

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Format: Chicago

Mexico: Selected Issues, (USA: International Monetary Fund, 2019) accessed December 22, 2024

Summary

This Selected Issues paper shows that upgrading basic public infrastructure, and road infrastructure, raises productivity among firms, not only for large companies but also for Mexico’s large number of small and micro firms. This finding suggests that greater government spending on road infrastructure will support efforts to raise productivity and growth over the medium term. Mexico’s infrastructure quality has been on a steady decline. World Economic Forum indicators of perceived infrastructure quality show Mexico broadly in line with—or even outperforming—its emerging market and regional peers. Infrastructure quality and access are likely to weaken further at current investment rates. Spending trends compare particularly poorly to investment needs in the case of roads investment. According to the Global Competitiveness Index, the perceived quality of Mexico’s transportation infrastructure is broadly in line with peers. The note provides evidence of the role of infrastructure investment in boosting productivity.

Subject: Capital spending, Education spending, Expenditure, Social protection spending, Total expenditures

Keywords: Capital spending, Cost, Cost cap, CR, Education spending, Firm, Firm productivity, Firm's locality, Global, IMF FAD Expenditure Assessment Tool, ISCR, Mexico, Micro firm, Physical capital, Social protection spending, Spending efficiency, Total expenditures

Publication Details

Pages:

42
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2019/337
Stock No:

1MEXEA2019002
ISBN:

9781513519043
ISSN:

1934-7685

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