The Growth Return of Infrastructure in Latin America
21 Pages Posted: 23 Mar 2017
Date Written: February 2017
This paper examines the effects of improvements in infrastrucutre on sectoral growth andfirm-level investment, focusing on six Latin American countries. Exploiting theheterogeneity in the quality of infrastructure across countries and the intrinsic variation inthe dependence of sectors on infrastructure, I find that better infrastructure raises growthand investment. Improved infrastructure could yield large economic benefits. Forexample, if the quality of infrastructure in Colombia increased to the sample median(Czech Republic), GDP growth would increase by about 0.1 percentage points.
Keywords: Economic growth, Emerging markets, Infrastructure, Investment, Public investment, Latin America, Return on investment, growth, Fiscal and Monetary Policy in Development, General
JEL Classification: O19, O23, O40, O47
Suggested Citation: Suggested Citation