Structural change and productive interdependence: An analysis for Brazil

Abstract

This paper aims to analyze Brazil's multisectoral productive interdependence and structural change by applying input-output methods and panel data estimations. The main findings suggest a reduced inter-sectoral convergence process in terms of growing service-manufacturing linkages. Manufacturing is losing multiplier intensity and importance compared to services. Most of the total output change in Brazil is due to changes in final demand, not technological change. Furthermore, structural change and interdependence between services and manufacturing do not suggest a growth-enhancing pattern.