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International Monetary Fund. Western Hemisphere Dept.
This Selected Issues paper shows that upgrading basic public infrastructure, and road infrastructure, raises productivity among firms, not only for large companies but also for Mexico’s large number of small and micro firms. This finding suggests that greater government spending on road infrastructure will support efforts to raise productivity and growth over the medium term. Mexico’s infrastructure quality has been on a steady decline. World Economic Forum indicators of perceived infrastructure quality show Mexico broadly in line with—or even outperforming—its emerging market and regional peers. Infrastructure quality and access are likely to weaken further at current investment rates. Spending trends compare particularly poorly to investment needs in the case of roads investment. According to the Global Competitiveness Index, the perceived quality of Mexico’s transportation infrastructure is broadly in line with peers. The note provides evidence of the role of infrastructure investment in boosting productivity.
International Monetary Fund. Western Hemisphere Dept.

Times Based on Geo-Coding (with Time Variation Solely due to Road Construction and Improvement) We use geo-coding to create time varying estimates of travel times between firmslocalities and major Mexican metropolitan areas in each 5-year interval during our sample period 1993–2013. The first step involves producing cross-sectional variation on travel times between localities at the end of our sample period . To do so, the calculation makes use of the 2014 digital GIS road network provided by INEGI. We combine the road network with data on average truck speeds