Structural Decomposition analysis for the Brazilian Health sector: 2000 - 2005

Abstract

In this article we implement a Structural Decomposition Analysis for the Brazilian health sector for the period 2000 to 2005, based on the input-output matrix calculated by IBGE. Our goal is to investigate the impact of changes in sectoral interdependence and in final demand on the Brazilian productive sectors, particularly those related to health care. Our results show that the final demand component is relevant to explain variation in the production of Health sectors. We also find that Brazilian sectors differ significantly with respect to variation in sectoral interdependence and intradependence. Finally, we identify Medical assistance and Manufacture of pharmaceuticals as the health sectors that showed the largest increase in sectoral interdependence.