The recent evolution of investment in Argentina

Abstract

It is presented in this work a comparison between the investments that have been carried out in two marked periods in Argentina, the pre crisis and post crisis periods. On one hand, the pre crisis period, in which the investment was financed by the external sector, is characterized by a strong growth of the investment due to the sustained entrance of capitals, which also causes a strong dependence on the international macroeconomic situation. On the other hand, in the post crisis period, the investment was financed exclusively with the reinvestment of utilities and
internal saving. The gold here is to show that growth is not sustainable if it is only based on consumption; the roll of investment is fundamental not only as to maintain a stable rate of growth but in the dynamics of the prices as well. To ignore its importance condemns the society to poverty.