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


Yucer A., Guilhoto J., Siroen J.

REVUE D ECONOMIE POLITIQUE, vol.124, no.4, pp.599-612, 2014 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 124 Issue: 4
  • Publication Date: 2014
  • Journal Name: REVUE D ECONOMIE POLITIQUE
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.599-612
  • Keywords: Vertical Specialization, Global supply-chain, Input-Output Analysis, Brazil intranational trade
  • Dokuz Eylül University Affiliated: No

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.