The Worrying Drop in Public Investment in Brazil and Its Relationship with Spending on Active Public Employees and Inactive Employees

This paper aims to analyze the levels of Brazilian public investment and the influences of public spending on active public employees and inactive employees. Using the ARDL econometric model with bound tests by Pesaran et. al (2001) and data from 2003 to 2020, are exposed as trajectories of public expenditures and investments in the Union, 27 states and 5,568 Brazilian municipalities. The results show that, although long-term Brazilian public expenditures have increased revenue and recent public expenditures, they have increased over the years. These results are useful for contributing to the literature that investigates public investments by bringing empirical evidence, for investors who use emerging market assets in their strategies and for public policymakers.