Using input-output data to model the structure of export linkages in global value chains: A Brazil case study

Abstract

This paper considers Global Value Chains by developing an open Leontief input-output model for which household consumption is endogenously determined—the Type II framework. Three specific contributions are: an extension of the Type II input-output model to a multi-country setting; its empirical modelling using trade-linked input-output tables; and a Brazil case study for exploring how the industrial structure of export linkages impact on employment. Policy dilemmas that emerge for Brazil's industrial strategy focus on its heavy reliance on primary-based industries, and how it might diversify its trading partners.