The Growth Return of Infrastructure in Latin America

21 Pages Posted: 23 Mar 2017

See all articles by Sergi Lanau

Sergi Lanau

International Monetary Fund (IMF)

Date Written: February 2017

Abstract

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

Lanau, Sergi, The Growth Return of Infrastructure in Latin America (February 2017). IMF Working Paper No. 17/35, Available at SSRN: https://ssrn.com/abstract=2938333

Sergi Lanau (Contact Author)

International Monetary Fund (IMF) ( email )

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

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