Filling the Gap: Infrastructure Investment in Brazil

21 Pages Posted: 14 Sep 2015

See all articles by Mercedes Garcia-Escribano

Mercedes Garcia-Escribano

University of Chicago - Department of Economics

Carlos Góes

International Monetary Fund (IMF)

Izabela Karpowicz

International Monetary Fund (IMF)

Date Written: July 2015

Abstract

Infrastructure bottlenecks have been identified as a key obstacle to growth affecting productivity and market efficiency, and hindering domestic integration and export performance. This paper assesses the state of Brazil’s infrastructure, in light of past investment trends and various quality and quantity indicators. Brazil’s infrastructure stock and its quality rank low in relation to that of comparator countries, chosen amongst main export competitors. We provide evidence that infrastructure affects domestic integration by analyzing price convergence of tradable goods across major cities. The government’s concession program will narrow part of the infrastructure gap, however, governance reforms will be crucial to improving investment efficiency.

Keywords: Infrastructure, Public Investment, Domestic Market Integration

JEL Classification: H54, C33, N76

Suggested Citation

Garcia-Escribano, Mercedes and Góes, Carlos and Karpowicz, Izabela, Filling the Gap: Infrastructure Investment in Brazil (July 2015). IMF Working Paper No. 15/180, Available at SSRN: https://ssrn.com/abstract=2659537

Mercedes Garcia-Escribano (Contact Author)

University of Chicago - Department of Economics ( email )

1126 East 59th Street
Chicago, IL 60637
United States

Carlos Góes

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Izabela Karpowicz

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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