Tertiary industries’ value-added as a linkage’s engine: An interstate input-output application for Brazilian regions

Tertiary industries’ value-added have been considered an essential input for any production chain, as they have the potential to connect regions and services activities across networks. Moreover, spatially, services move more straightforward than the manufacturing of resource-based industries. This...

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Main Authors: Eduardo Rodrigues Sanguinet, Gabriel Rodriguez-Puello
Format: Article
Language:English
Published: AECR 2022-11-01
Series:Investigaciones Regionales - Journal of Regional Research
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Online Access:https://recyt.fecyt.es/index.php/IR/article/view/89526
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author Eduardo Rodrigues Sanguinet
Gabriel Rodriguez-Puello
author_facet Eduardo Rodrigues Sanguinet
Gabriel Rodriguez-Puello
author_sort Eduardo Rodrigues Sanguinet
collection DOAJ
description Tertiary industries’ value-added have been considered an essential input for any production chain, as they have the potential to connect regions and services activities across networks. Moreover, spatially, services move more straightforward than the manufacturing of resource-based industries. This study estimates the interregional and inter-industry linkages regarding a set of services-related economic sectors and accounts for the trade in value-added (TiVA) measures, considering intraregional and interregional trade based on an interstate input-output application for Brazil. The main findings reveal that the poorest Brazilian states tend to lose linkages opportunities in services activities, remaining hostages to supply natural resources to production networks for subnational and foreign demand. On the other hand, the potential for gains from connections in the services’ networks reveals greater spatial dispersion across regional hierarchies, increasing the concentration in large urban agglomerations. In this regard, the paper concludes that the connectivity potential of services at the intraregional level can be an essential starting point to promote innovative systems away from large urban areas in the wealthiest regions inside Brazil, potentially reducing value-added imbalances in internal geography trade flows.
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publishDate 2022-11-01
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spelling doaj-art-6ca9469d42bc4a6cbcd79510d15498962025-08-20T01:50:27ZengAECRInvestigaciones Regionales - Journal of Regional Research1695-72532340-27172022-11-015410.38191/iirr-jorr.22.018Tertiary industries’ value-added as a linkage’s engine: An interstate input-output application for Brazilian regionsEduardo Rodrigues SanguinetGabriel Rodriguez-Puello Tertiary industries’ value-added have been considered an essential input for any production chain, as they have the potential to connect regions and services activities across networks. Moreover, spatially, services move more straightforward than the manufacturing of resource-based industries. This study estimates the interregional and inter-industry linkages regarding a set of services-related economic sectors and accounts for the trade in value-added (TiVA) measures, considering intraregional and interregional trade based on an interstate input-output application for Brazil. The main findings reveal that the poorest Brazilian states tend to lose linkages opportunities in services activities, remaining hostages to supply natural resources to production networks for subnational and foreign demand. On the other hand, the potential for gains from connections in the services’ networks reveals greater spatial dispersion across regional hierarchies, increasing the concentration in large urban agglomerations. In this regard, the paper concludes that the connectivity potential of services at the intraregional level can be an essential starting point to promote innovative systems away from large urban areas in the wealthiest regions inside Brazil, potentially reducing value-added imbalances in internal geography trade flows. https://recyt.fecyt.es/index.php/IR/article/view/89526Services value-addedStructural linkagesVertical integrationRegional inequalities
spellingShingle Eduardo Rodrigues Sanguinet
Gabriel Rodriguez-Puello
Tertiary industries’ value-added as a linkage’s engine: An interstate input-output application for Brazilian regions
Investigaciones Regionales - Journal of Regional Research
Services value-added
Structural linkages
Vertical integration
Regional inequalities
title Tertiary industries’ value-added as a linkage’s engine: An interstate input-output application for Brazilian regions
title_full Tertiary industries’ value-added as a linkage’s engine: An interstate input-output application for Brazilian regions
title_fullStr Tertiary industries’ value-added as a linkage’s engine: An interstate input-output application for Brazilian regions
title_full_unstemmed Tertiary industries’ value-added as a linkage’s engine: An interstate input-output application for Brazilian regions
title_short Tertiary industries’ value-added as a linkage’s engine: An interstate input-output application for Brazilian regions
title_sort tertiary industries value added as a linkage s engine an interstate input output application for brazilian regions
topic Services value-added
Structural linkages
Vertical integration
Regional inequalities
url https://recyt.fecyt.es/index.php/IR/article/view/89526
work_keys_str_mv AT eduardorodriguessanguinet tertiaryindustriesvalueaddedasalinkagesengineaninterstateinputoutputapplicationforbrazilianregions
AT gabrielrodriguezpuello tertiaryindustriesvalueaddedasalinkagesengineaninterstateinputoutputapplicationforbrazilianregions