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Linkages and Economic Development: The Case of Brazil Reconsidered

Benedict Clements and José Rossi

No 17, Discussion Papers from Instituto de Pesquisa Econômica Aplicada - IPEA

Abstract: This paper provides mathematically consistent calculations of the forward, backward, and total linkages in the Brazilian economy in 1975. Our results reveal, among other things, that: 1) high linkages cannot be exclusively associated with modern industrial sectors; 2) none of our linkage measures have any consistent relationship with domestic resource cost, our measure of efficiency; 3) there are some doubts on the proposition that Brazilian economic growth has been linkage-intensive; and 4) there are some important differences between "key" sectors from the standpoint of backward and forward linkages .

Pages: 40 pages
Date: 2015-01
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