Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/51510
Authors: 
Lora, Eduardo
Year of Publication: 
2007
Series/Report no.: 
Working paper // Inter-American Development Bank, Research Department 595
Abstract: 
Panel data for seven Latin American countries are used to assess the influence of public indebtedness on public investment in infrastructure in the period 1987-2001. Debt increases are associated with higher public infrastructure investment, an effect that is robust to the inclusion of many other fiscal and macroeconomic variables. This paper also finds some evidence of complementarity between public and private investment and of the negative effect of IMF adjustment loans on infrastructure expenditures. No evidence is found that debt defaults affect public investment in infrastructure.
Subjects: 
Public investment
Public infrastructure
Public debt
Fiscal policies
Default
Latin America
Document Type: 
Working Paper

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