Infrastructure investments and well-being in Brazil

associative evidence and the role of Public-Private Partnerships (PPPs)

Authors

DOI:

https://doi.org/10.21874/r0zwq507

Keywords:

infrastructure, well-being, public-private partnerships (PPPs), tax incentives, public policy

Abstract

In economies characterised by social and regional inequalities, such as Brazil, infrastructure investment plays a fundamental role in both economic growth and the promotion of well-being. This study examines the relationship between infrastructure investment and the well-being of the Brazilian population, measured by the Sen Welfare Index (SWI), which combines average income and income inequality. Econometric results based on national data indicate that public investment has greater explanatory power for the SWI than private investment, although it exhibits a negative association in level models, possibly owing to inefficiencies in resource allocation or time lags between investment and its social effects. When the temporal dynamics of well-being are taken into account, the findings reveal strong persistence in the SWI and a positive association between total infrastructure investment and its level. First-difference estimates do not identify statistically significant effects in the short term, suggesting that the social benefits of infrastructure are realised primarily over the medium and long term. The state-level analysis also reveals a positive association between the SWI and the share of federal units receiving infrastructure tax incentives through REIDI, indicating potential redistributive effects of this fiscal policy. Overall, the findings suggest that social well-being depends not only on the volume of investment, but also on the quality, governance, and equity of its allocation.

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Author Biography

  • Elianara Gomes dos Santos, Universidade Federal do Rio de Janeiro (UFRJ), Rio de Janeiro - RJ, Brasil

    PhD in Industrial and Technology Economics, Federal University of Rio de Janeiro (UFRJ). Master’s degree in Regional Economics, State University of Londrina (UEL). Research fellow at the Directorate of Sectoral Studies and Policies, Innovation, Regulation and Infrastructure (Diset), Institute for Applied Economic Research (Ipea).

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Published

2026-06-17

How to Cite

Infrastructure investments and well-being in Brazil: associative evidence and the role of Public-Private Partnerships (PPPs). (2026). Revista Do Serviço Público, 77(2), 330-352. https://doi.org/10.21874/r0zwq507