The Growth Return of Infrastructure in Latin America

February 14, 2017

Preview Citation

Format: Chicago

Sergi Lanau. The Growth Return of Infrastructure in Latin America, (USA: International Monetary Fund, 2017) accessed December 22, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

This paper examines the effects of improvements in infrastrucutre on sectoral growth and firm-level investment, focusing on six Latin American countries. Exploiting the heterogeneity in the quality of infrastructure across countries and the intrinsic variation in the dependence of sectors on infrastructure, I find that better infrastructure raises growth and investment. Improved infrastructure could yield large economic benefits. For example, if the quality of infrastructure in Colombia increased to the sample median (Czech Republic), GDP growth would increase by about 0.1 percentage points.

Subject: Corporate investment, Emerging and frontier financial markets, Financial institutions, Financial markets, Infrastructure, National accounts, Stocks, Transportation

Keywords: Corporate investment, Emerging and frontier financial markets, Global, Growth, Infrastructure, Infrastructure investment, Investment, Investment analysis, Investment plan, Investment rate, Investment regression, Rate of firm, Stocks, Transportation, WP

Publication Details

Pages:

20
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2017/035
Stock No:

WPIEA2017035
ISBN:

9781475578959
ISSN:

1018-5941

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