INVESTIMENTO PRIVADO NO BRASIL: EQUAÇÕES DE CURTO E LONGO PRAZOS

Abstract

This paper discusses brazilian private investment between 1970 and 1995. First, we review the most important theoretical approaches to investment and special attention is given to idiosyncratic facts about developing countries. That forms a basis for a later econometric treatment. Second, a brief empirical survey is done with the objective of placing this work between others that deals with this issue. As one verifies that the series of private investment, public investment, GDP, interest rate and inflation rate are cointegrated, it is possible to establish a formal model of the behavior and dynamics of investment. Some conclusions are pointed out: macroeconomic instability has an adverse impact on private investments and so do the public investment (crowding-out effect).