Qualitative input-output analysis of the brazilian structural transformation, 2005-2014

Abstract

This paper investigates the changes to the essential economic structure of the Brazilian economy from 2005 to 2014. It uses the method of qualitative input-output analysis and its extensions, applied by Aroche-Reyes (1996) and Gosh and Roy (1998), to verify the pattern of structural change, the number of dynamic sectors, and to examine whether there has been change in the role of sectors in this period. The results indicate a change in the structure of the economy, leading to a decrease in intersector and intrasector economic linkages. In this context, the construction sector remains central, presenting a substantial number of important coefficients. However, the total number of important coefficients diminished in the whole period, indicating a deteriorated economic structure. This fact points to a restriction in the nation’s sustainable economic growth.