A systemic analysis of the service sector in Brazil for the year 2005

Abstract

This study aims to perform a systemic analysis of the service sector in Brazil. For that purpose, some activities of the service sector in the input-output matrices for the year 2005 were disaggregated. We used data from the Pesquisa Anual de Serviços (PAS) and in order to get a consistent input-output matrix we applied the RAS method. The disaggregated matrix was composed by 65 sectors of the economy, 24 being service sectors. With the disaggregated matrix, it was observed that services have had a high employment creation capability and a low product generation capacity. It is worth mentioning the absence of service sectors as key sectors in the economy. Most of the service sectors have a low power of sale and purchase of inputs from the remaining sectors of the economy, and in most cases buying and selling are concentrated in a few sectors. It was shown that the links within the service sectors were below the economy’s average, while the links between the industrial sectors were very strong. When the service sectors were hypothetically removed from the economy, it was noted that their impacts were higher on the industrial sectors’ product, indicating the importance of service sectors for the economy.