The impact of the public-private investments in infrastructure on agricultural exports in Latin American countries

Abstract

Agricultural activity promotes poverty reduction. There is still an important infrastructure investment gap to enhance agricultural productivity. The public-private partnerships arise as a channel to cover it. This article analyzes the relation between public-private investment in infrastructure and agricultural exports in Latin American countries. We use a panel data sample composed by 14 countries observed over the period of 17 years, from 1995 to 2011 to which we apply panel data techniques. Results show that public-private investment in infrastructure has a positive impact on agricultural exports. The impact of private investments more than doubles the impact of public investments. The role of the public sector is crucial to guarantee the positive impacts of public-private investment on the recipient country by providing solid institutions framework and the appropriate investment climate.