The Brazilian steel industry: an interregional input-output analysis for 1999-2002

Abstract

This study calculated indicators using inter-regional input-output matrices, by the update RAS method, containing regions of Minas Gerais (MG) and the rest of Brazil (RB), between 1999 and 2002. The results revealed that the steel sector of MG is less self-sufficient, less labor intensive and more sensitive to demand shocks, when compared to the same sector in RB. And has a high increasing rate of overflow of the multiplier output. The steel industries, in both regions, had a decrease in the dependence of workers in the period and were regionally important, although only the sector in the RB is set as a key sector in national context. The chemical sector and Textile / Clothing, both in RB, were the largest consumers and suppliers of steel in the two regions, respectively. Moreover, if there was a shock in the final demand sector in Minas Gerais, over 30% of jobs would overflow to RB. Otherwise, they would be less than 3% migrating to MG. Finally, the spatial decomposition indicates that the difference in steel production in these regions should not be attributed to differences in inter-sector trade.