This study presents an approach for computing an input-output matrix for the state of Pernambuco for 1999. This general equilibrium model allows for job, income and added value generation policies, necessary for state development, built on an input-output framework. Based on results from the input-output matrix, indicators of sector linkages in Pernambuco's economy, effects of demand shocks on jobs, income and added value, as well as impacts of production chains development policy via imports internalization are presented. Results presented are intended to be used in the rational making of public policies for regional planning by policy-makers.
input-output matrix; impact multipliers; linkage indices
