Filling the Gap

Filling the Gap

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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 Brazila€™s infrastructure, in light of past investment trends and various quality and quantity indicators. Brazila€™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 governmenta€™s concession program will narrow part of the infrastructure gap, however, governance reforms will be crucial to improving investment efficiency.Infrastructure bottlenecks have been identified as a key obstacle to growth affecting productivity and market efficiency, and hindering domestic integration and export performance.


Title:Filling the Gap
Author: Ms. Mercedes Garcia-Escribano, Carlos Góes, Ms. Izabela Karpowicz
Publisher:International Monetary Fund - 2015-07-29
ISBN-13:

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