The existence of strong complementarities between investment in infrastructure and private investment, and consequently between investment in infrastructure and economic growth, stimulate a wider study concerning these relationships and the process of privatization in light of different perspectives. The objective of this paper is to analyze the effect of privatization on public investment, exploring Hirschman's approach to the development of the nations. Through this theoretical reference, the existent relationship between investment, growth and development will be examined with the aim of highlighting the importance of, and the role carried out by, investments in infrastructure in the period from 1995 to 2003 (powder-privatizations) and how they impacted the economy.
Privatization; Investment; Infrastructure; Growth; Development
