Os Efeitos do Gasto do Governo sobre o Investimento do Setor Privado no Brasil entre 1970 a 2009

Abstract

This article analyzes whether public administration investments complement or replace (crowding-in or crowding-out effect) private sector investments in Brazil between 1970 and 2009. Using an error correction mechanism model, the results show that investments public administrations have a substitute effect for private investments. The results also show that the growth in demand contributes to private sector investments, confirming the investment accelerator theory for the Brazilian economy in the period under analysis.