Abstract
This article develops, based on the post-Keynesian perspective, the hypothesis that the deterioration of a country’s infrastructure inhibits private investment and reduces its sensibilities regarding its determinants, such as real interest rate, credit, real exchange rate, public investment, and infrastructure. The hypothesis is tested for the period of 1985-2013 for six economies of Latin America, by using the estimators dynamic fixed effects, pooled mean group and cross sectionally augmented pooled mean group in a dynamic heterogeneous panel. The results indicate the positive impact of infrastructure on the formation of private capital. They also suggest that the deterioration of the infrastructure stock causes drops in the private investment sensibility regarding its determinants, which reduces the potence of the economic policy in stimulating the private investment by changing its determinants.
Keywords
Infrastructure; Private investment; Sensibilities
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Nota: setores incluídos no IE: água e saneamento, geração de energia, telecomunicações e transportes. Fonte: Elaboração dos autores a partir dos dados de Calderon e Servén (2010) e Infralatam (2016).