The IMF Working Papers series is designed to make IMF staff research available to a wide audience. With nearly 300 released each year, working papers cover a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Mercedes Garcia-Escribano, Carlos Góes, and Izabela Karpowicz
INTERNATIONAL MONETARY FUND
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