Internal and International Vertical Specialization of Brazilian States – An Input-Output Analysis

Autores:

Ayçıl Yücer – Dokuz Eylül Üniversitesi

Jean-Marc Siroën – Université Paris-Dauphine

Joaquim José Martins Guilhoto – Universidade de São Paulo

ABSTRACT: WTO, OECD with many others, suggest the trade in value-added would be a “better” measure to understand the impact of trade on employment, growth, production etc. when import content in exports is important. 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.

Keywords: Vertical Specialization, Global supply-chain, Input-Output Analysis, Brazil, intra-national trade

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