Assessing Productive Structures in Brazil With Dynamic Time Varying Graphs

Abstract

This paper uses time varying graphs to evaluate the Brazilian production structures, assessing the relationship across economic sectors overtime given important macroeconomic shocks in the country. We use the annual Brazilian input-output matrices from the World Input–Output Database for the period 1995–2011. Our results show possible positive impacts of macroeconomic policies and higher commodity prices on increased network connectivity between 2002 and 2003, the negative influence of the 2008 crisis resulting in decreased network connectivity, and the intensification of the connectivity of the food, petrochemical and metals, and machinery sectors. These results provide insights on how potential macroeconomic exogenous shocks and policies propagates through the national production structure.