Was there a reduction in the impact of industrial sectors on the Brazilian economy between 1996 and 2009? An input-output analysis

ABSTRACT

This aim of this paper is to add new evidence to the debate on the deindustrialization of the Brazilian economy by exploring indicators that measure backward and forward linkages. The paper uses the Rasmussen-Hirschman indexes for the Brazilian economy for the years 1996, 2000, 2005 and 2009. It is concluded that there is little evidence to hold the thesis that deindustrialization of the Brazilian economy has taken place. During the periods mentioned there was no clear trend of a fall in the manufacturing industry's share in gross added value or total employment. Furthermore, the Rasmussen-Hirschman indexes for different sectors within the manufacturing industry show a reduction in backward and forward linkages between 1996 and 2000 and a recovery between 2000 and 2009.

Keywords:
Deindustrialization; Brazilian industry; Input-output; Linkages; Key sectors