Determinants of Aggregate Investment in Brazil during the period 1995-2013

The aim of the article was to identify the determinants of aggregate investment in Brazil in the period 1995-2013. Initially we conducted a panorama of recent developments in private investment in the country and its importance for economic development. The article also presents the main theories on...

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Main Authors: Rossana Lott Rodrigues, Carlos Roberto Ferreira
Format: Article
Language:Portuguese
Published: Universidade Estadual de Londrina 2015-07-01
Series:Economia & Região
Subjects:
Online Access:http://www.uel.br/revistas/uel/index.php/ecoreg/article/view/21576/16531
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author Rossana Lott Rodrigues
Carlos Roberto Ferreira
author_facet Rossana Lott Rodrigues
Carlos Roberto Ferreira
author_sort Rossana Lott Rodrigues
collection DOAJ
description The aim of the article was to identify the determinants of aggregate investment in Brazil in the period 1995-2013. Initially we conducted a panorama of recent developments in private investment in the country and its importance for economic development. The article also presents the main theories on investment as well as a brief survey of the main empirical studies already undertaken on the subject. From the empirical results and the Keynesian and neoclassical theories of investment, the econometric model with Autoregressive Distributed Lags (ARDL) was formulated. The results showed that the GDP, taxes, interest rates, loans and past investments determined the aggregate investment in Brazil during the studied period, getting signs of the estimated coefficients consistent with economic theory. The results also indicated that lower Brazilian tax burden without obtaining primary deficits and with better allocation of resources, together with the reduction of the interest rate that does not generate inflationary pressure, and commitment to permanent political and economic development programs are ways to foster Brazilian investment.
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spelling doaj.art-bcb449afaf714b9dafae3d4cea512a1c2022-12-21T19:18:09ZporUniversidade Estadual de LondrinaEconomia & Região2317-627X2015-07-0131395610.5433/2317-627X.2015v3n1p39Determinants of Aggregate Investment in Brazil during the period 1995-2013Rossana Lott Rodrigues0Carlos Roberto Ferreira1UEL- BrazilUEL - BrazilThe aim of the article was to identify the determinants of aggregate investment in Brazil in the period 1995-2013. Initially we conducted a panorama of recent developments in private investment in the country and its importance for economic development. The article also presents the main theories on investment as well as a brief survey of the main empirical studies already undertaken on the subject. From the empirical results and the Keynesian and neoclassical theories of investment, the econometric model with Autoregressive Distributed Lags (ARDL) was formulated. The results showed that the GDP, taxes, interest rates, loans and past investments determined the aggregate investment in Brazil during the studied period, getting signs of the estimated coefficients consistent with economic theory. The results also indicated that lower Brazilian tax burden without obtaining primary deficits and with better allocation of resources, together with the reduction of the interest rate that does not generate inflationary pressure, and commitment to permanent political and economic development programs are ways to foster Brazilian investment.http://www.uel.br/revistas/uel/index.php/ecoreg/article/view/21576/16531InvestmentBrazilGPDInterest RatesTax Burden
spellingShingle Rossana Lott Rodrigues
Carlos Roberto Ferreira
Determinants of Aggregate Investment in Brazil during the period 1995-2013
Economia & Região
Investment
Brazil
GPD
Interest Rates
Tax Burden
title Determinants of Aggregate Investment in Brazil during the period 1995-2013
title_full Determinants of Aggregate Investment in Brazil during the period 1995-2013
title_fullStr Determinants of Aggregate Investment in Brazil during the period 1995-2013
title_full_unstemmed Determinants of Aggregate Investment in Brazil during the period 1995-2013
title_short Determinants of Aggregate Investment in Brazil during the period 1995-2013
title_sort determinants of aggregate investment in brazil during the period 1995 2013
topic Investment
Brazil
GPD
Interest Rates
Tax Burden
url http://www.uel.br/revistas/uel/index.php/ecoreg/article/view/21576/16531
work_keys_str_mv AT rossanalottrodrigues determinantsofaggregateinvestmentinbrazilduringtheperiod19952013
AT carlosrobertoferreira determinantsofaggregateinvestmentinbrazilduringtheperiod19952013