CONTRIBUTION OF FOREST INDUSTRY FOR BRAZILIAN ECONOMIC DEVELOPMENT: AN INPUT/OUTPUT MATRIX APPROACH

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Sebastião Renato Valverde
Márcio Lopes da Silva
Luciano Ribeiro Machado

Abstract

This article shows the importance of the forest sector in relation to other sectors of the Brazilian economy. By aggregation of input-output matrix of 1990 from IBGE, a promotion policy of Brazilian export was simulated with objective of improving the trade balance and to verify the impacts on the sectorial and total production, importation and labor hiring. The inter-industry linkage was also obtained aiming at identifying the key-sectors of the economy. The results indicated that forest industry, mainly Pulp and Paper, Wood and Furniture, and Siderurgy, showed the larger increases on total production, larger taxes on jobs, lower imports and larger backward linkages, while others sectors like Chemical and Machines and Equipments showed lower production, labor hiring and the large increase on the imports. The importance of the forest sector on Brazilian economy was outs standing.

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