Decomposition & Synergy: A Study of the Interactions and Dependence Among the 5 Brazilian Macro Regions

Abstract

The methodology originally developed by Sonis, Hewings, and Miyazawa (1997) is now expanded and discussed more horoughly when applied to an interregional table at the level of the 5 macro regions of the Brazilian economy for the year of 1995. The methodology used in this work is based on a partitioned input-output system and exploits techniques of the Leontief inverse through the nature of the internal and external interdependencies giving by the linkages, which allows to classify the types of synergetic interactions within a reset pair-wise hierarchy of economic linkages sub-systems. The results show that: a) the North region has practically no relation with the Northeast region and vice-versa; b) while the South region has some impact on the production of the North region, the inverse is not true; c) despite the fact that the demands from the Central West region have some impact on the production of the other regions, the production in the Central West region has its relations concentrated with the Southeast and South regions; and d) the South and Southeast regions show to be the most important regions in the system.