The Growth Return of Infrastructure in Latin America

Author/Editor:

Sergi Lanau

Publication Date:

February 14, 2017

Electronic Access:

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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.

Series:

Working Paper No. 17/35

Subject:

English

Publication Date:

February 14, 2017

ISBN/ISSN:

9781475578959/1018-5941

Stock No:

WPIEA2017035

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

20

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