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Regional and global patterns of participation in value chains: Evidence from Brazil

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  • Inácio Fernandes de Araújo
  • Fernando Salgueiro Perobelli
  • Weslem Rodrigues Faria

Abstract

This paper focuses on the role played by the Brazilian economy in global value chains with reference to global and regional contexts. To this end, we calculate downstream and upstream indicators of global and regional integration and fragmentation of global value chains. We use the full Eora Multiregional Input-Output Table for the period from 1990 to 2015. The main results indicate that Brazilian participation in global value chains increased during this period and became more fragmented internationally, mainly in global terms, but its regional insertion has increased more than its global insertion. Although South America has a small share in value-added trade, Brazil operates as a regional hub, as it is a reference for international trade in this region. In the global context, Brazil plays the role of supplier of intermediate inputs, while in the regional context, it serves as the main production center.

Suggested Citation

  • Inácio Fernandes de Araújo & Fernando Salgueiro Perobelli & Weslem Rodrigues Faria, 2021. "Regional and global patterns of participation in value chains: Evidence from Brazil," International Economics, CEPII research center, issue 165, pages 154-171.
    • Handle: RePEc:cii:cepiie:2021-q1-165-10
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    More about this item

    Keywords

    International fragmentation; Global value chains; Global and regional fragmentation; Input-output; Brazil;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis

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