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Linking Brazilian Regions to Value Chains: Is There a Potential for Regional Development?

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  • Eduardo Rodrigues Sanguinet

    (Instituto de Economía Agraria, Facultad de Ciencias Agrarias y Alimentarias, Universidad Austral de Chile, Valdivia 509000, Chile
    Departamento de Economía, Facultad de Economía y Administración, Universidad Católica del Norte, Antofagasta 1240000, Chile
    Departamento de Economia, Faculdade de Economia, Administração, Contabilidade e Atuária, da Universidade de São Paulo, São Paulo 05508-010, Brazil)

  • Miguel Atienza

    (Departamento de Economía, Facultad de Economía y Administración, Universidad Católica del Norte, Antofagasta 1240000, Chile)

  • Carlos Roberto Azzoni

    (Departamento de Economia, Faculdade de Economia, Administração, Contabilidade e Atuária, da Universidade de São Paulo, São Paulo 05508-010, Brazil)

  • Augusto Mussi Alvim

    (Escola de Negócios, Pontificia Universidade Católica do Rio Grande do Sul, Porto Alegre 90619-900, Brazil)

Abstract

This paper examines the subnational dimension of regional value-added transfers in multiscalar value chains in Brazil by analyzing the local content embedded in trade. This study reveals distinct spatial-based connectivity patterns within subnational and global value chains. An input–output model is employed to estimate the trade in value added from different Brazilian regions. The findings demonstrate that economically advanced regions, such as Southeastern Brazil, are both globally and nationally integrated and therefore stand to benefit from both types of integration. Conversely, subnational peripheries in the North and Northeastern states of Brazil play a crucial role in supplying raw materials for both domestic and global flows. These regions exhibit a clear profile of export dependency with low value-added content in trade. Consequently, our trade measures highlight a spatial concentration of development opportunities characterized by a distinct core–periphery pattern within the country. This imbalance in territorial capacity limits the potential for these regions to derive economic development benefits from integration into value chains.

Suggested Citation

  • Eduardo Rodrigues Sanguinet & Miguel Atienza & Carlos Roberto Azzoni & Augusto Mussi Alvim, 2023. "Linking Brazilian Regions to Value Chains: Is There a Potential for Regional Development?," Economies, MDPI, vol. 11(7), pages 1-24, July.
    • Handle: RePEc:gam:jecomi:v:11:y:2023:i:7:p:199-:d:1199459
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    References listed on IDEAS

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