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The Role Of Brazilian Regions In The Global Value Chain

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  • ERIK DIETZENBACHER
  • JOAQUIM J.M. GUILHOTO
  • DENISE IMOR

Abstract

In the last couple of decades, production processes have been characterized by their fragmentation, which crosses the borders of countries more and more. This coincides with the common viewpoint that products and services are now made in global value chains and that ‘trade in value added’ might be a better approach for the measurement for international trade. The same applies at the regional level, and perhaps even to a larger extent. The present paper analyzes the role of Brazilian states in the global value chain. Since fragmentation of production processes leads to an interdependent structure which has to be accounted for, the input-output methodology seems especially suitable. Therefore, in its empirical application, the paper combines a world input-output table covering 40 countries (and the rest of the world as a 41st country) with an inter-regional input-output table covering each of the Brazilian states, for the year 2008. Our results show that the average country trades approximately twice as much in value added (as a share of country’s value added) than Brazil: the participation of Brazil in the global value chain is somewhat limited. We notice, however, important differences among states, both in terms of trade volume and of relevant industries that account for the generation of value added. The paper also further analyzes the Brazilian value chain and the trade relations of Brazilian states with China and USA, exploring the regional heterogeneities involving such relations.
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Suggested Citation

  • Erik Dietzenbacher & Joaquim J.M. Guilhoto & Denise Imor, 2014. "The Role Of Brazilian Regions In The Global Value Chain," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41st Brazilian Economics Meeting] 181, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    • Handle: RePEc:anp:en2013:181
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    References listed on IDEAS

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    Cited by:

    1. Denise Imori & Joaquim José Martins Guilhoto & Geoffrey J. D. Hewings, 2018. "Brazilian States In Global Value Chains: Spatial Production Systems Interpreted By Feedback Loop Analysis," Anais do XLIV Encontro Nacional de Economia [Proceedings of the 44th Brazilian Economics Meeting] 151, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    2. Chen, Jian & Zhao, Di, 2022. "Complexity of domestic production fragmentation and its impact on pollution emissions: Evidence from decomposed regional production length," Structural Change and Economic Dynamics, Elsevier, vol. 61(C), pages 127-137.
    3. Elvira Prades-Illanes & Patrocinio Tello-Casas, 2020. "Spanish regions in Global Value Chains: How important? How different?," Working Papers 2026, Banco de España.
    4. Bart Los & Marcel P. Timmer & Gaaitzen J. Vries, 2015. "How Global Are Global Value Chains? A New Approach To Measure International Fragmentation," Journal of Regional Science, Wiley Blackwell, vol. 55(1), pages 66-92, January.
    5. Antonioli, Davide & Berardino, Claudio Di & Onesti, Gianni, 2023. "The intersectoral linkages and manufacturing productivity growth in Italian regions using the I-O approach," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 120-133.
    6. Xing, Lizhi & Dong, Xianlei & Guan, Jun, 2017. "Global industrial impact coefficient based on random walk process and inter-country input–output table," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 471(C), pages 576-591.
    7. Bo Meng & Norihoko Yamano, 2017. "Compilation of a regionally extended inter-country input–output table and its application to global value chain analyses," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-38, December.
    8. Araújo, Inácio Fernandes de & Perobelli, Fernando Salgueiro & Faria, Weslem Rodrigues, 2021. "Regional and global patterns of participation in value chains: Evidence from Brazil," International Economics, Elsevier, vol. 165(C), pages 154-171.
    9. Bullón, David & Mena, Tayutic & Meng, Bo & Sánchez, Natalia & Vargas, Henry & Inomata, Satoshi, 2015. "Using the input-output approach to measure participation in GVCs : the case of Costa Rica," IDE Discussion Papers 529, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    10. Fan, Xiaojia & Wu, Sanmang & Lei, Yalin & Li, Shantong & Li, Li, 2020. "Have China's resource-based regions improved in the division of GVCs? — Taking Shanxi Province as an example," Resources Policy, Elsevier, vol. 68(C).
    11. Joaquim José Martins Guilhoto & Denise Imori, 2014. "Brazilian Role in the Global Value Chains," Working Papers, Department of Economics 2014_24, University of São Paulo (FEA-USP).

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    JEL classification:

    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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