Combining Geoprocessing and Interregional Input-Output Systems: An Application to the State of São Paulo in Brazil

Abstract

This work develops a method for the construction of input-output systems capable of estimating the flows of goods and services among cities, having in view that the creation of accurate strategies depends on the regional peculiarities incorporated in the scope of the economic planning researches. The study innovates by combining geoprocessing with inputoutput theory elements, facilitating the interpretation of the information available on the extensive data set of interregional input-output systems. The analytical potential is showed through a panoramic evaluation of the Sao Paulo State supply and demand relations, and by the application of the estimated input-output system to a study of the regional impacts of the “Bolsa Familia” Program, an income transfer program from the Federal government. The results show that this program must be understood not only as a form of income transference, but also as a catalytic agent for decreasing the regional inequality inside the state.