Internal and International Vertical Specialization – Estimations for Brazil and new Approach to Gravity Models

Annual Doctoral Conference of the Association for the Development of Research in Economics and Statistics (ADRES). Strasbourg, January 2013

37 Pages Posted: 28 Feb 2014

See all articles by Joaquim Guilhoto

Joaquim Guilhoto

Organization for Economic Co-Operation and Development (OECD) - Directorate for Science, Technology and Industry (STI); University of Sao Paulo

Jean-Marc Siröen

Université Paris Dauphine

Aycil Yücer

Université Paris Dauphine - UMR DIAL; University of Dokuz Eylül

Date Written: 2013

Abstract

WTO, OECD with many others, suggest the trade in value-added would be a “better” measure to understand the impact of trade on employment, growth, production etc. when import content in exports is important. We use in this work an Input-Output table for 2008, to calculate the value-added exported by Brazilian states. We distinguish the value-added exported directly by the state itself or indirectly via other states. First, by using value-added we define the extent of vertical specialization among Brazilian states. Exported value-added are then used in a gravity model to determine the structure of trade in value-added terms. We also define a trilateral gravity structure which permits to control for the vertical specialization between states and to estimate the trade determinants at three steps: origin state, re-exporter state and importer country.

Keywords: Vertical Specialization, Input-Output Analysis, Gravity Model, Brazil, intra-national trade

JEL Classification: F02, F15, R12, R15

Suggested Citation

Guilhoto, Joaquim José Martins and Siröen, Jean-Marc and Yücer, Aycil, Internal and International Vertical Specialization – Estimations for Brazil and new Approach to Gravity Models (2013). Annual Doctoral Conference of the Association for the Development of Research in Economics and Statistics (ADRES). Strasbourg, January 2013 , Available at SSRN: https://ssrn.com/abstract=2401840 or http://dx.doi.org/10.2139/ssrn.2401840

Joaquim José Martins Guilhoto (Contact Author)

Organization for Economic Co-Operation and Development (OECD) - Directorate for Science, Technology and Industry (STI) ( email )

Paris
France

University of Sao Paulo ( email )

Av. Prof. Luciano Gualberto, 908
FEA2
Sao Paulo, 05508-010
Brazil
+ 55 011 3091-5870 (Phone)
+ 55 011 3813-4743 (Fax)

Jean-Marc Siröen

Université Paris Dauphine ( email )

223 Rue Saint-Honore
Paris, 75775
France

Aycil Yücer

Université Paris Dauphine - UMR DIAL ( email )

Paris
France

University of Dokuz Eylül

Cumhuriyet Blv No:144, Kültür Mh.
Konak
Izmir, Izmir 35210
Turkey

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