Integrating the Brazilian Interstate input-output model into the world input-output database (WIOD)

• Grant number: 12/06381-3
• Support Opportunities: Research Grants - Visiting Researcher Grant - International
• Start date: August 02, 2012
• End date: September 01, 2012
• Field of knowledge: Applied Social Sciences - Economics - Regional and Urban Economics
• Principal Investigator: Joaquim José Martins Guilhoto
• Grantee: Joaquim José Martins Guilhoto
• Visiting researcher: Hendrikus Wilhelmus Andreas Dietzenbacher
• Visiting researcher institution: University of Groningen, Netherlands
• Host Institution: Faculdade de Economia, Administração e Contabilidade (FEA). Universidade de São Paulo (USP). São Paulo , SP, Brazil

Abstract

During the month of August 2012, when Prof. Erik Dietzenbacher will be at FEA-USP, the goals to be achieved are: a) to initiate a project to integrate the Brazilian interstate input-output system into the world input-output database (WIOD); b) a seminar to be given in the economics graduate course of IPE-USP; c) an one-week course on "Advanced Topics in Input-Output" to be offered to the graduate students (MA and Ph.D.) in the Department of Economics of FEA-USP, and d) interaction and discussion with faculty and students of the Department of Economics of FEA-USP. The research work to be developed will have a great benefit with visit of Prof. Erik Dietzenbacher. The aim of the research is to analyze the relationship between the global production structure and the international trade and its impact on economic, social and environmental variables in the Brazilian states. To do so, it will be done an integration of the world input-output database to the national database, detailed at the state level. The development of the "World Input-Output Database (WIOD)" was funded from the European Commission and was coordinated by Prof. Erik Dietzenbacher. The input-output methodology is fundamentally suitable for the study of the productive structure of the economy, since it specifies the existing intersectoral relations. This is a consolidated methodology not only to estimate economic and social impacts but also to analyze the impacts of economic activities on the environment. By its use, it is possible to analyze the impacts on total production, including direct and indirect effects, due to the demand for inputs, and induced effects, due to the consumption of the households, which benefit from the new income generated in the economy. To this end, it is intended from the existing experience in the estimation of interstate input-output systems within NEREUS-USP to start an integration of Brazilian interstate input-output system into the world input-output database (WIOD). The model to be adopted will allow to identify sectors in each state which stand out as important for economic, social and environmental variables. The analysis will also be done from the viewpoint of the final demand components, highlighting the role of the Brazilian states relations with its major trading partners, domestic or international. Another important aspect of the recent literature on international trade will also be considered, i.e., the measurement of international transactions in terms of value added. In a context marked by the fragmentation of global production, in which intermediate inputs are predominant in international trade, such a measure has been debated as more appropriate in relation to the gross output measure, as a way to better reflect the economic benefits of international trade. The model being developed will allow, therefore, to estimate the economic, social and environmental impacts in relation to the value added value they generate for Brazil and its states. Therefore, it is expected that the development of this integrated analysis of the productive structures and the trade relations of the Brazilian states in a world system improves the understanding of the impact which these relationships have on the economic, social and environmental development of the Brazilian regions. Thus, providing information needed for the formulation of better public policies at the national and international levels. (AU)