Determinants of fixed assets investments in Brazil in 2007-2017 from a post-Keynesian approach: an empirical analysis

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Abstract

This paper assesses empirically the determinants of private investment in Brazil between 2007 and 2017, from a Post-Keynesian approach, seeking to test whether the private investment of non-financial companies was affected by financialization and financial fragility processes a la Minsky. For this purpose, using the data of publicly traded non-financial companies in the period analyzed, segmented into different sector groups, the investment function is tested by two estimation methods: the Generalized Moments Method (GMM), in which an aggregate analysis and the temporal analysis method through the Autoregressive Model with Distributed Lag (ARDL), in which individual analyzes of each group are carried out. Individual results confirm the hypothesis of a negative relationship between financialization and productive investment; as for financial leverage, the models incorporating all companies with and without Petrobras presented a behavior in which higher levels of financial fragility negatively affect investment.

Author Biographies

Tiago Rinaldi Meyer

Doutor em Economia pelo Programa de Pós-Graduação em Ciências Econômicas da Universidade do Estado do Rio de Janeiro. Rio de Janeiro, RJ, Brasil

Luiz Fernando de Paula

Professor do Instituto de Economia da Universidade Federal do Rio do Janeiro, Coordenador do Grupo de Estudos de Economia e Política do Instituto de Estudos Sociais e Políticos da Universidade do Estado do Rio de Janeiro, Pesquisador do Conselho Nacional de Desenvolvimento Científico e Tecnológico e da Fundação de Amparo à Pesquisa do Estado do Rio de Janeiro. Rio de Janeiro, RJ, Brasil

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Published

2023-11-23

Issue

Rev. Econ. Contemp., v. 27, 2023

Section

Artigos

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Copyright (c) 2023 Tiago Rinaldi Meyer, Luiz Fernando de Paula

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