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Internal and International Vertical Specialization of Brazilian states – An Input-Output analysis

Author

Listed:
  • Ayçıl Yücer
  • Joaquim Guilhoto
  • Jean-Marc Siroën

Abstract

WTO, OECD with many others, suggest the trade in value-added would be a ?better? measure than gross value to understand the impact of trade on employment, growth, production etc. We use in this work an Input-Output table for 2008, to calculate the value-added exported by Brazilian states. We distinguish the value-added exported directly by the state itself or indirectly via other states. Then, we define the extent of vertical specialization among Brazilian states by using value-added indirectly exported. We calculate equally the import content in states? exports. If the share of import content in Brazilian exports is low, we show evidence that inter-state trade is quite high across some Brazilian states. Inter-state vertical specialization then operates at upstream stages of the value chain before the good be exported to foreign countries. However the value-added of a state; indirectly exported by another state is quite balanced by the value-added of its own exports which is imported from other states, then the export shares of each state in total Brazilian exports in value-added terms or in gross terms are close.

Suggested Citation

  • Ayçıl Yücer & Joaquim Guilhoto & Jean-Marc Siroën, 2014. "Internal and International Vertical Specialization of Brazilian states – An Input-Output analysis," Revue d'économie politique, Dalloz, vol. 124(4), pages 599-612.
    • Handle: RePEc:cai:repdal:redp_244_0599
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    Cited by:

    1. Magdalena Olczyk & Aleksandra Kordalska, 2017. "Gross Exports Versus Value-Added Exports: Determinants and Policy Implications for Manufacturing Sectors in Selected CEE Countries," Eastern European Economics, Taylor & Francis Journals, vol. 55(1), pages 91-109, January.
    2. Njike, Arnold, 2019. "Import processing zones, tools for regional integration? The case of the free trade zone of Manaus (Brazil)," MPRA Paper 97652, University Library of Munich, Germany.
    3. Florent Bédécarrats & Isabelle Guérin & François Roubaud, 2015. "The gold standard for randomized evaluations: from discussion of method to political economy," Working Papers DT/2015/01, DIAL (Développement, Institutions et Mondialisation).
    4. Giuseppe Ricciardo Lamonica, 2020. "How fragmented is the world economy: evidences from the EORA database," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 74(2), pages 39-48, April-Jun.
    5. Giuseppe Ricciardo Lamonica & Luca Salvati & Margherita Carlucci, 2020. "Vertical specialization across the world: evidence from the world input-output table," RIEDS - Rivista Italiana di Economia, Demografia e Statistica - The Italian Journal of Economic, Demographic and Statistical Studies, SIEDS Societa' Italiana di Economia Demografia e Statistica, vol. 74(1), pages 17-28, January-M.

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