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Assessing the Brazilian Regional Economic Structure: a spatial output decomposition analysis

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  • Fernando Perobelli

  • Eduardo Haddad

  • Vinicius Almeida

Abstract

The use of an interregional input-output model enables us to better understand the regional economic structure of production. It provides a rich and detailed static picture of a specific economy. We can implement a comparison overtime and across space. The second one will be implemented in this paper and enables an assessment of the differences in economic structure across regions. (Jackson and Dzikowski, 2002). The main aim of this paper is assessing structural change and interregional structural differences among Brazilian regions. The method applied in this paper uses the interregional input-output matrix for Brazil. This matrix considers 27 regions and 56 sectors in each region. Using this data set it will be possible to decompose differences in gross output into two distinct categories. The variation in gross output can be a function of the technical structure of production and of the final demand characteristics. The method provides a measure of the differences in interindustry structure among regions and also provides a measure of the way in which differences in interindustry structure and final demand distributions differentiate production across. The decomposition implemented in this paper is a variation of the method implemented by Feldman et al (1987). The spatial output decomposition (SOD) will be used to explore output differences between each region in Brazilian economy and an “average†Brazilian region. For each Brazilian state we will use SODL method that compares a state to an average Brazilian interindustry coefficient table and an average vector of final demand levels. The SODL method, emphasizes differences in the sizes of the state economies. Key-words: spatial output decomposition, Brazilian economy; regional economic structure JEL CODE: R15

Suggested Citation

  • Fernando Perobelli & Eduardo Haddad & Vinicius Almeida, 2012. "Assessing the Brazilian Regional Economic Structure: a spatial output decomposition analysis," ERSA conference papers ersa12p896, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa12p896
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    References listed on IDEAS

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    1. Ferreira, Pedro Cavalcanti Gomes & Jr., Roberto de Goes Ellery, 1996. "Convergência Entre a Renda Per-Capita dos Estados Brasileiros," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 16(1), November.
    2. Erik Dietzenbacher & Bart Los, 2000. "Structural Decomposition Analyses with Dependent Determinants," Economic Systems Research, Taylor & Francis Journals, vol. 12(4), pages 497-514.
    3. Randall W. Jackson & David A. Dzikowski, 2002. "A Spatial Output Decomposition Method for Assessing Regional Economic Structure," Advances in Spatial Science, in: Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), Trade, Networks and Hierarchies, chapter 17, pages 315-327, Springer.
    4. L. Lavinas & M. H. Garcia & M. R. Amaral, 1996. "Desigualdades regionais e retomada do crescimento num quadro de integração económica," Documentos de Trabajo (working papers) 1196, Department of Economics - dECON.
    5. Afonso Henriques Borges Ferreira & Clélio Campolina Diniz, 1994. "Convergência entre as rendas per capita estaduais no Brasil," Textos para Discussão Cedeplar-UFMG 079, Cedeplar, Universidade Federal de Minas Gerais.
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    Cited by:

    1. Fabio Clementi & Francesco Schettino, 2013. "Income polarization in Brazil, 2001-2011: A distributional analysis using PNAD data," Economics Bulletin, AccessEcon, vol. 33(3), pages 1796-1815.

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    JEL classification:

    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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