The farming in the Brazilian economy: An analysis of input-output

Abstract

The objective of this paper is to show empirically the importance of the farming in the Brazilian productive structure. For this, the model of input-output was used, since this technique makes possible to check the connections between the productive sectors through the indexes of Rasmussen-Hirschman, fields of influence and pure rates of connection, as well as to determine the variations effects in the final demand on the variables analyzed through the multipliers. The empirical results showed the importance of the farming for the Brazilian economy, standing outas important buyer of goods and services and important supplier of inputs for other sectors, which shows its importance of being a supplier of raw material for the development of the non agricultural sector and important consumer market for the industrialized products. However, by the optics of the multipliers, the farming sector produces relatively fewer jobs and, consequently, less income in the economy. On the other hand, there is a great capacity of job and income multiplication in other demanding activities of inputs from agriculture.

Key words: agricultural sector, input-output, multipliers.