Empirical studies regarding the determinants of private investment in developing countries including Brazil have demonstrated the high inflation’s rates negative impact on investment. However the recent Brazilian’s experience clearly shows that stabilization is not capable of recovering investment’s rates. Therefore the objectives of this study are: a) to analyze the long term private investment’s determinants in Bra zil; b) analyze if the Brazilian economy has been impacted by the crowding-in or crowding-out effetcs; and c) analyze the macronomic variables’ behavior during the 2012 to 2017 period. In order to do this we used a cross section econometric analysis and a Monte Carlo Simulation for the data analysis. The paper presents the main investment theories and recent developments of these theories as well as how they can be applied to the Brazilian data. The results show ev...

Empirical studies regarding the determinants of private investment in developing countries, including Brazil, have demonstrated the high inflation’s rates negative impact on investment. However, the recent Brazilian’s experience clearly shows that stabilization is not capable of recovering investment’s rates. Therefore, the objectives of this study are: a) to analyze the long term private investment’s determinants in Bra zil; b) analyze if the Brazilian economy has been impacted by the crowding-in or crowding-out effetcs; and c) analyze the macronomic variables’ behavior during the 2012 to 2017 period. In order to do this, we used a cross section econometric analysis and a Monte Carlo Simulation for the data analysis. The paper presents the main investment theories, and recent developments of these theories, as well as how they can be applied to the Brazilian data. The results ...