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Key sectors and structural change in the Brazilian economy: A comparison of alternative approaches and their policy implications

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  • Hewings, Geoffrey J. D.
  • Fonseca, Manuel
  • Guilhoto, Joaquim
  • Sonis, Michael

Abstract

Attempts to identify key sectors in an economy with input output models have been a source of considerable debate. in this paper; several old and new approaches to the problem are evaluated with reference to the Brazilian economy using the input-output models for 1959, 1970 and 1975. Two alternative approaches are suggested in this paper. The first of these focuses on key coefficients through the identification of fields of influence associated with changes in these coefficients, including the effects of simultaneous changes in more than one coefficient. The second approach decomposes the interindustry transactions into a set (hierarchy) of flows. It is claimed that the flows associated with the higher levels of the hierarchy can be considered as the key flows or most important transactions. These new approaches are compared to earlier techniques to examine the degree to which important changes in the economy could be detected.
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Suggested Citation

  • Hewings, Geoffrey J. D. & Fonseca, Manuel & Guilhoto, Joaquim & Sonis, Michael, 1989. "Key sectors and structural change in the Brazilian economy: A comparison of alternative approaches and their policy implications," Journal of Policy Modeling, Elsevier, vol. 11(1), pages 67-90.
    • Handle: RePEc:eee:jpolmo:v:11:y:1989:i:1:p:67-90
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    1. Baer, Werner & Fonseca, Manuel A. R. da & Guilhoto, Joaquim José Martins, 1986. "Structural changes in Brazil's industrial economy, 1960-80," MPRA Paper 54823, University Library of Munich, Germany.
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    3. Bullard, Clark W, III & Sebald, Anthony V, 1977. "Effects of Parametric Uncertainty and Technological Change on Input-Output Models," The Review of Economics and Statistics, MIT Press, vol. 59(1), pages 75-81, February.
    4. Guilhoto, Joaquim José Martins, 1986. "A model for economic planning and analysis for the brazilian economy," MPRA Paper 53944, University Library of Munich, Germany.
    5. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-873, December.
    6. Round, Jeffrey I, 1985. "Decomposing Multipliers for Economic Systems Involving Regional and World Trade," Economic Journal, Royal Economic Society, vol. 95(378), pages 383-399, June.
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    More about this item

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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