Social policies, personal and regional income inequality in Brazil: an I-O analysis


Carlos Roberto Azzoni-   University of Sao Paulo

Joaquim José Martins Guilhoto – University of Sao Paulo


Resumo: Measures to stimulate the demand for some manufacturing products have been carried out by the Brazilian government. However, the country is admittedly competitive in its agricultural production and policies to encourage its demand have not been established in the same magnitude as those of manufacturing products. This study aimed to verify whether the increased demand on manufacturing products, encouraged by the government in the economy, causes larger impacts than incentives in the agricultural production, raw or processed, which justifies the choice of sectors benefiting from the recent policies in the country. It was observed that the aggregated impact when considering the agroindustrial sectors was higher than that for manufacturing sectors evaluated. It was also found that, for the same size of land cultivated in the country, the impacts on employment, remuneration, production value and GDP in the economy are 2-4 times higher when the product is processed than if considered only the demand increase for the raw product. Therefore, incentives on the demand for the Brazilian agroindustrial products can generate more significant growth and employment in the country than increasing demand for manufacturing products.

Keywords: Social policies, Brazil, input-output

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