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The Growth Return of Infrastructure in Latin America

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  • Mr. Sergi Lanau

Abstract

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.

Suggested Citation

  • Mr. Sergi Lanau, 2017. "The Growth Return of Infrastructure in Latin America," IMF Working Papers 2017/035, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2017/035
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    Cited by:

    1. Muhammad Javid, 2019. "Public and Private Infrastructure Investment and Economic Growth in Pakistan: An Aggregate and Disaggregate Analysis," Sustainability, MDPI, vol. 11(12), pages 1-22, June.

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