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

Ayçıl Yücer, Joaquim Guilhoto and Jean Siroen

Revue d'économie politique, 2014, vol. 124, issue 4, 599-612

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.

Keywords: vertical specialization; Global supply-chain; Input-Output Analysis; Brazil; intra-national trade (search for similar items in EconPapers)
Date: 2014
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