Public and private investments in Brazil between 1996 and 2018

Sabrina Monique Schenato Bredow (), André Moreira Cunha () and Marcos Tadeu Caputi Lélis ()

Brazilian Journal of Political Economy, 2022, vol. 42, issue 4, 957-976

Abstract: This work analyzes the dynamic effects generated by public investmentson private investments in machinery and equipment in Brazil, between 1996 and 2018.Theories based on the principle of effective demand support the hypothesis formulatedabout the complementarity between public and private investments. We have developed an analytical scheme that identifi es the induction channels for public investments for privateones, through demand and supply sides of the economy. From an empirical point of view,the work uses the specifi cation of the econometric model of Autoregressive Vectors (VAR)that allows treating public investments as exogenous to the system. The results show thatan increase in public investments boosts private investments during the analyzed period. JEL Classification: O11; E22; O23.

Keywords: Public investment; private investment; Brazil; economic growth (search for similar items in EconPapers)
Date: 2022
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