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Tinkazos
On-line version ISSN 1990-7451
Abstract
FERRUFINO G., Rubén; VELASQUEZ C., Iván and GAVINCHA, Marco. Does investment really matter?: Adequacy and effectiveness of investment in Bolivia. Tinkazos [online]. 2011, vol.14, n.30, pp.25-50. ISSN 1990-7451.
Public investment can encourage inward or outward displacements, depending on its degree of influence at the sector level. The presumption of inward displacement corresponds to the positive case where increased public investment produces incentives that also lead to an increase in private investment. This will happen when there are complementarities between public investment and private investment. The research has identified that there has been a "disconnect" between public and private investment in Bolivia.
Keywords : macroeconomics; microeconomics; investment; private investment; public investment; investment policy; Bolivia.