An analysis of productive investment decision marking in Brazil during the COVID-19 pandemic

Abstract

The goal of this paper is to analyse, from the perspective of the supply, how Brazilian productive companies act in moments of uncertainty and identifies the main factors that are associated to the execution of productive investment between the beginning of 2020 and the end of 2021, which was marked by COVID-19. Beside that, it´s important to determinate the most important macroeconomic variables that impact the decision of the companies, as economic agents, to make productive investments in the country in times of economic instability. This is a qualitative work that has in its theoretical framework Keynesian theory as the main pillar and it’s also based on the scientific study of the most remarkable Brazilian economists who are concerned with examining the topic. The descriptive analysis showed that the decision making by the capital productive holders in moments of crisis goes with the Keynesian ideas. In summary, economic recovery must come not only through interest rate control, but also combined conjuctural and structural stimulus.

Keywords

• Pandemia da Covid-19, Investimentos produtivos, Incerteza, Keynes, Taxa de Juros