Regional Importance of the Agribusiness in the Brazilian Economy

Following Furtuoso and Guilhoto (2003) the GDP of the Brazilian Agribusiness is estimated to be around 27% of the Brazilian GDP in 2000, and the latest numbers show that it could be reaching 30% of the Brazilian GDP in 2003. Despite its importance for the Brazilian economy as a whole, the size of the Brazilian territory and the regional differences draws attention for the fact that the importance of the agribusiness is not uniform over the Brazilian regions, and if the agribusiness is also divided into its four components, i.e., a) inputs to agriculture; b) agriculture; c) agriculture based industry; and d) final distribution, the differences are even bigger. In this paper it is made a study of the importance of the agribusiness for the 27 states of the Brazilian economy, taking into consideration its four components. The analysis is conduct for the year of 1999 using an interregional input-output system constructed for the Brazilian economy by Guilhoto et al. (2004).

THE REGIONAL (STATE LEVEL) IMPORTANCE OF THE AGRIBUSINESS GDP IN THE BRAZILIAN ECONOMY

Following Furtuoso and Guilhoto (2003) the GDP of the Brazilian Agribusiness is estimated to be around 27% of the Brazilian GDP in 2000, and the latest numbers show that it could be reaching 30% of the Brazilian GDP in 2003. Despite its importance for the Brazilian economy as a whole, the size of the Brazilian territory and the regional differences draws attention for the fact that the importance of the agribusiness is not uniform over the Brazilian regions, and if the agribusiness is also divided into its four components, i.e., a) inputs to agriculture; b) agriculture; c) agriculture based industry; and d) final distribution, the differences are even bigger. In this paper it is made a study of the importance of the agribusiness for the 27 states of the Brazilian economy, taking into consideration its four components. The analysis is conduct for the year of 1999 using an interregional input-output system constructed for the Brazilian economy by Guilhoto et al. (2004).

Impacts of Reallocation of Resource Constraints on the Northeast Economy of Brazil

The present paper explores the role of water and energy resource constraints and allocation on the Northeast Brazil economy. The analysis centered on the creation of an intergrated model in which an econometric-input-output model was linked with a linear programming optimization model for resource allocation. Over the period 1999-2012, the impact on the six agricultural sectors was to reduce their output and employment by 15% annually. The reduction in employment in the rest of the economy was a little over 1% annually. However, since the agricultural sectors continue to employ a significant percentage of the labor force, the aggregate loss of employment amounted to 6% of the total regional employment on average, translating into 1 million jobs annually. When water allocation and energy resource allocations are considered simultaneously, the re-allocations are more limited, resulting in a loss of 0.78 million jobs annually. These results suggest the need for an active link between policy making and economic development when resource constraints are present. Some balance has to be provided between allocation and reallocation on the one hand perhaps driven by concerns with economic efficiency against anticipated losses of employment for part of the labor force with few other alternatives.

Brazilian productive structure and CO2 emissions

This paper analyzes the relation between economic performance and CO2 emissions in Brazil, in the year 2004. The contribution of the productive sectors to total emission is established, taking into account the technological structure of the economy, the interrelations among sectors, the sectoral capacity of generating value-added and the participation of final demand in the national sectors. For this purpose, an input-output model is used to analyze the impact of income generation and final demand on the emissions. This approach allows one to study the impacts caused by sectoral mitigation policies. The main results show that, both from a production and a demand perspective, the same key productive sectors stand out, especially the Transport sector.Environmental Economics; CO2; Brazil; Productive Structure; Input-Output

An Overview of the Productive Structure of the Amazon Region: Using the Eyes of an Interregional Input-Output System

There is a scarcity of economic studies about the economy of the Amazon region, and specially about its productive structure. The goal of the present study is to shed some light on the way that the productive relations take place among the states of the Amazon region and between them and the rest of Brazil. This study takes as the main source of data an interregional input-output system consisted of 10 regions (nine Amazon states and the Rest of Brazil region) constructed for the year of 1999 by Guilhoto et al. (2002) for the Amazon Bank (BASA). The analysis is conducted by first studying, through the interregional input-output system, how the economic relations take place in the Amazon region. Then, through a series of methodologies, like multipliers, and backward and forward linkages, and using the concept of Electroeconogram it is made a comparative study of the differences in productive structures among the Amazon Region states.

Tracing Brazilian regions? CO2 emissions in domestic and global trade

The current Brazilian position on climate change has been formalized with the law of National Climate Change Policy (PNMC, in Portuguese), established in December 2009, which provides a legal framework for national actions aimed at mitigation and adaptation. Within PNMC, the country has defined its national voluntary reduction targets for greenhouse gases emissions, with reductions between 36.1% and 38.9% of projected emissions by 2020. The distribution of the corresponding mitigation efforts by regions is of great concern in a large country like Brazil, with substantial regional variation in economic development, physical geography, production system, and energy consumption. In fact, most of Brazilian states have established public policies on climate change. Out of the 27 states, three have mandatory targets for reducing greenhouse gas emissions: São Paulo and Rio de Janeiro, in the most developed Southeast region; Mato Grosso do Sul, in the Central-West region; as well as Paraíba, in the Northeast region. In this context, questions raised in the literature on global climate change, such as the environmental responsibility for emissions embodied in trade, also apply at the regional level, and perhaps even to a larger extent. In order to analyze at regional level the current relationship between Brazil?s CO2 emissions and domestic and global value chains, in this study we adopt a new framework that combines a world input-output table (WIOT) with an inter-regional input-output table (IRIOT). In our approach, we have chosen not to take one of the datasets (say the WIOT) as a starting point and adapt the other dataset (i.e. the IRIOT) accordingly, instead we construct input coefficients for which both datasets are used. For the empirical application, we use the WIOT for 2008 that was constructed in the World Input-Output Database (WIOD) project. It is a full inter-country input-output table covering 40 countries and the rest of the world as a 41st country. Our IRIOT for 2008 covers the 27 Brazilian states. Both the WIOT and the IRIOT were aggregated to 28 compatible industries. Also, a new database is compiled on Brazilian states? energy use (by fuel) and related CO2 emissions at sectoral level, based on states? official energy balances and estimates of national greenhouses gases emissions for 2008 from Brazil?s Ministry of Science and Technology. We are able to evaluate the CO2 emissions in each of the 27 Brazilian states, considering their respective intra-regional productive structure, energy use, as well as their trade with other states or foreign countries. In this way, our results reveal how CO2 emissions are produced in Brazilian regions by means of domestic and global value chains

Tertiary activities and informality: quantitative importance and interconnections within the economy in Brazil

This paper studies the importance of the Tertiary sector and the informal sector for the Brazilian economy, making an interconnection between them and with them and the rest of the economy and the formal sector. To do so, this work makes use of the data presented in the System of National Accounts and the National Survey of Households (PNAD), both from IBGE, and the Leontief model. The results show: a) the importance of the Tertiary sector for the Brazilian economy in terms of employment (around 61% of the occupied persons), and income generation (around 67% of the economy Value Added); b) the high share of the informal sector in the Brazilian economy (around 58% of the occupied persons and 34% of the income); c) the combination of these factors results in an economy with low wages and salaries and with an high concentration of income; and d) that the present productive structure of the Brazilian economy contributes to the concentration of income in the country.Tertiary Activities; Informality; Input-Output; Employment

Structural Analysis of the Formal and Informal Jobs in the Brazilian Economy

The reorganization of the Brazilian economy, in the globalization process, has brought out changes in its productive structure, and, consequently, changes in the job market. These changes had impact on the employment at the sectoral level, with great concerns related to the labor relations and to the growing unemployment rates. In the 1990s, the change in the focus of the development strategy, from a closed protected economy to an open economy with monetary control, has originated deep changes in the labor market. The number of employed persons in the primary and secondary sector was reduced, while in the tertiary sector there was an increase in the number of jobs, but not enough to absorb all the employees released from the previous two sectors. Besides the reduction in the capability of the economy to create new jobs, the last decade of the previous century has also showed an increase in the number of informal jobs. The share of informal jobs in the Brazilian economy was around 52% in 2003. In this way, the question of employment generated by the economic sectors, in number and quality, has become a crucial issue. The goal of this work is to study the characteristics and the evolution of the occupied persons, and to relate it with the formal and informal job market, as well as the economy productive structure, using for that input-output matrices constructed for the Brazilian economy. The main results show that there was a reduction in the capacity of the economy to generate employment for every million of Reais produced in a given sector. The data also shows that despite the ratio of informal workers in the economy being superior to the workers in the formality, the formal sector was responsible for about 60% of the jobs generated in the period of analysis.