Appendix. Infrastructure Indicators
Calderón, C., and L. Servén (2010). “Infrastructure in Latin America,” World Bank Policy Research Working Paper No. 5317 (Washington: World Bank).
Calderón, C., E. Moral-Benito, and L. Servén (2014). “Is Infrastructure Capital Productive? A Dynamic Heterogeneous Approach,” Journal of Applied Econometrics (online).
Frischtak, C. (2013). “Infraestrutura e desenvolvimento no Brasil,” in Desenvolvimento Econômico: Uma Perspectiva Brasileira, Fernando Veloso (Eds), Elsevier, Rio de Janeiro, pp. 322–347.
Fan, C. S., and W. Xiangdong (2006). “The Law of One Price: Evidence from the Transitional Economy of China,” The Review of Economics and Statistics, Vol. 88, No. 4, pp. 682–97.
Góes, C. and T. Matheson (2015, forthcoming). “Domestic Market Integration and the Law of One Price in Brazil,” IMF Working Paper.
Im, K., Pesaran, M. H., and Y. Shin (2003). “Testing for Unit Roots in Heterogeneous Panels,” Journal of Econometrics, Vol. 115, Issue 1 (July), pp. 53–7.
Li, N., and J. Huang (2006). “Price Convergence and Market Integration: Strong Evidence Using Canada Data,” The Empirical Economics Letters, 5(1), (January) ISSN 1681 8997.
Roche, S., and A. Ter-Martirosyan (2013). “Financing Investment-Led Growth in Brazil,” Selected Issues Paper, IMF Country Report No. 13/313 (Washington).
Schwab, K. and X. Sala-i-Martin (2014). “The Global Competitiveness Report 2014-2015: Full Data Edition.” Geneva: World Economic Forum.
The World Bank, 2007, “How to Revitalize Infrastructure Investments in Brazil: Public Policies for Better Private Participation,” The World Bank Report No. 36624-BR (Washington: World Bank).
We are grateful for the helpful comments from Alfredo Cuevas, Troy Matheson, and Javier Kapsoli and to Mauricio Vargas and Luca Ricci for sharing their structural database with infrastructure quality indicators with us. The paper has benefited from discussions with the Central Bank, the Ministry of Finance, and the Ministry of Transportation of Brazil.
According to Credit Suisse (2013), most of the R$1 trillion investment gap is infrastructure related. Underinvestment is especially notable in greenfield projects as brownfield projects were granted to the private sector through concessions. Airports, ports, and rail are the most constrained sectors.
The original works studies convergence to the national mean.
Using the aforementioned half-lives (h), we derive the autoregressive term as |ρ| = exp(ln(0.5)/h) and plot their respective response functions.
The analysis of the ICMS is beyond the scope of this paper.
The WEF Survey captures the opinions of 14,000 business leaders around the World on a broad range of topics, including the quality of infrastructure. As such, qualitative infrastructure indicators are based on the aggregation of subjective perceptions. (For the methodology see:
It is estimated that some 20 million of new vehicles were sold in Brazil since 2008.
Doing Business ranks Brazil in the top 20 based on affordability and the number of procedures and days it takes to obtain electricity.
The PAC—excluding allocations to defense, education and the Minha Casa Minha Vida programs—amounted 0.5 percent of GDP in 2013, up from 0.3 percent of GDP in 2007.
In contrast, in Chile, the private sector more than compensated for the fall in public expenditures since 1989, with a net positive impact on total investments (World Bank, 2007).
Even though concessions could bring efficiency gains, there could be fiscal risks involved that should be closely monitored.
The figure includes projects announced in June 2015.