Socioeconomic and sectoral impacts of investment projects of Brazil armed forces

Abstract

The defense sector is strategic for national sovereignty and for the development of products that demand skilled labor and advanced technological knowledge. In Brazil, the acquisition and development of defense products and services are organized in the Defense Articulation and Equipment Plan (DAEP) of the Armed Forces. This paper aims to measure and evaluate the impacts on economic and social variables of 23 investment projects of DAEP through the input-output methodology. A method was created to carefully identify the sectoral composition of the DAEP projects based on information obtained mainly from the Transparency Portal of the Federal Government. It was verified that DAEP projects mainly impact the medium-high and high technology industries and the knowledge-intensive services. The proposed method to identify the sectoral composition of investment projects can be replicated to analyze the other Brazilian public expenditures.