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Public and private investments at the subnational level: the Brazilian experience in a Keynesian perspective

Author

Listed:
  • André Moreira Cunha

    (Universidade Federal do Rio Grande do Sul, Programa de Pós-Graduação em Economia, Porto Alegre/RS, Brazil | Conselho Nacional de Desenvolvimento Científico e Tecnológico, Brasília, DF, Brazil)

  • Julimar da Silva Bichara

    (Universidad Autónoma de Madrid, Departamento de Estructura Económica y Economía del Desarrollo, Madrid, Spain)

  • Marcos Tadeu Caputi Lélis

    (Universidade Federal do Rio Grande do Sul, Programa de Pós-Graduação em Economia, Porto Alegre/RS, Brazil | Conselho Nacional de Desenvolvimento Científico e Tecnológico, Brasília, DF, Brazil | Universidade do Vale do Rio dos Sinos, Programa de Pós-Graduação em Economia, São Leopoldo, RS, Brazil)

  • Diana Chaukat Chaib

    (Universidade Federal de Minas Gerais, Centro de Desenvolvimento e Planejamento Regional, Belo Horizonte, MG, Brazil)

Abstract

This article evaluates the relationship between public and private investments at the subnational level. The previous literature on this topic has little emphasized the analysis of regional dynamics, since the IBGE does not provide detailed historical series of Gross Fixed Capital Formation (GFCF) at the local level. To help fill this gap, such relationships are revisited for Brazil, with the use of panel data from a Generalized Method of Moments (GMM) Model. We built different proxies to capture the private and public dimensions of investments for the 27 Federation Units. The results obtained converge with international and national evidence of the predominance of positive effects of public investments over private ones, which reinforces the perspective suggested in the Keynesian and structuralist literatures. JEL Classification: E22; E32.

Suggested Citation

  • André Moreira Cunha & Julimar da Silva Bichara & Marcos Tadeu Caputi Lélis & Diana Chaukat Chaib, 2026. "Public and private investments at the subnational level: the Brazilian experience in a Keynesian perspective," Brazilian Journal of Political Economy, FGV EAESP, vol. 46(2), pages 263792-2637, May.
    • Handle: RePEc:ekm:repojs:v:46:y:2026:i:2:id:98259
    DOI: 10.1590/3086-44612026-3792
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    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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