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Relations of the regional Brazilian cane agro-industry with the national economy: analysis applied to the Centre-South and North-Northeast

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  • Cinthia Cabral da Costa
  • Heloisa Lee Burnquist
  • Joaquim Jose Martins Guilhoto

Abstract

Cane, sugar and ethanol production in Brazil has been divided between two major production regions, the Centre-South (CS) and the North-Northeast (NNE), which present very different productivity, and henceforth production costs. The CS average productivity is more than 72 tonnes of cane per hectare, while average productivity in the NNE is 49 tonnes per hectare. The objective of the study was to establish interrelations between the cane agro-industry and other regional sectors and with the overall Brazilian economy. This framework was used to compare a demand impact upon regional cane production upon the regional and the overall Brazilian economy. An interregional input-output matrix was used to characterize how regional demand impacts on both regional and overall Brazilian economies. Rasmussen-Hirschman indexes, together with a pure linkage index were used for the analysis. In addition, production multipliers, with and without considering endogenous family consumption were estimated. The results showed that a positive demand impact upon the cane agro-industry produces a greater impact upon the NNE compared to the CS, considering income effects, indicating that cane production is more important for the NNE than for the CS. These results can be useful to establish priorities for development policies for the country.

Suggested Citation

  • Cinthia Cabral da Costa & Heloisa Lee Burnquist & Joaquim Jose Martins Guilhoto, 2006. "Relations of the regional Brazilian cane agro-industry with the national economy: analysis applied to the Centre-South and North-Northeast," Applied Economics, Taylor & Francis Journals, vol. 38(5), pages 519-531.
    • Handle: RePEc:taf:applec:v:38:y:2006:i:5:p:519-531
    DOI: 10.1080/00036840500391039
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    Cited by:

    1. de Freitas, Luciano Charlita & Kaneko, Shinji, 2011. "Ethanol demand in Brazil: Regional approach," Energy Policy, Elsevier, vol. 39(5), pages 2289-2298, May.
    2. Costa, Cinthia Cabral da & Guilhoto, Joaquim José Martins & Imori, Denise, 2013. "Importância dos Setores Agroindustriais na Geração de Renda e Emprego para a Economia Brasileira," Brazilian Journal of Rural Economy and Sociology (Revista de Economia e Sociologia Rural-RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 51(4), pages 1-18, December.
    3. Haddad, Eduardo & Mena-Chalco, Jesús & Sidone, Otávio, 2015. "Scholarly Collaboration in Regional Science in Developing Countries: The Case of the Brazilian REAL Network," TD NEREUS 4-2015, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    4. Blanco Orozco, Napoleon Vicente & Zúniga-González, Carlos Alberto & Sierra F, Pablo & Dios-Palomares, Rafaela, 2014. "Impacto del uso de biomasa en la bioeconomía de los ingenios azucareros Centroamericanos," Universitas (León): Revista Científica de la UNAN León, National Autonomous University of Nicaragua, Leon (Unan-Leon), Researching Center for Applied Economic (RCAE), vol. 5(1), pages 1-32, July.
    5. Eduardo A. Haddad & Jesús P. Mena-Chalco & Otávio J. G. Sidone, 2017. "Scholarly Collaboration in Regional Science in Developing Countries," International Regional Science Review, , vol. 40(5), pages 500-529, September.
    6. Brinkman, Marnix L.J. & da Cunha, Marcelo P. & Heijnen, Sanne & Wicke, Birka & Guilhoto, Joaquim J.M. & Walter, Arnaldo & Faaij, André P.C. & van der Hilst, Floor, 2018. "Interregional assessment of socio-economic effects of sugarcane ethanol production in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 88(C), pages 347-362.

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