The impact of public investment on private investment in Brazil, 1947-1990 / Bruno de Oliveira Cruz and Joanílio R. Teixeira.

Format:

Book

Government document

Author/Creator:

Cruz, Bruno de Oliveira, author.

Contributor:

Teixeira, Joanílio R..

Language:

English

Subjects (All):

Economic and Social Development.

Brazil.

Local Subjects:

Economic and Social Development.

Brazil.

Physical Description:

1 online resource (10 pages)

Contained In:

CEPAL Review Vol. 1999, no. 67, p. 75-84 1999:67<75 16840348

Place of Publication:

New York : United Nations, 1999.

System Details:

data file

Summary:

This article analyses the impact of public investment on private investment. Apart from purely ideological aspects, two opposing interpretations may be distinguished with regard to the relationship between these variables. The first is that there is competition between public and private investment, so that the former "crowds out" the latter. The second is that public investment is complementary to private investment in so far that, by generating positive externalities, it creates favourable conditions for the latter. In view of the relative scarcity of empirical studies on this matter, this study deals with the case of the Brazilian economy in the period from 1947 to 1990. Its main conclusions are that private investment is indeed crowded out by public investment in the short term, but in the long term the cointegration vector coefficients indicate that these two variables complement each other.

Notes:

Title from title screen (viewed May 1, 2017).

Access Restriction:

Restricted for use by site license.