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TD NEREUS 03-2021

Regional and Global Patterns of Participation in Value Chains: Evidence from Brazil

Inácio Fernandes de Araújo, Fernando Salgueiro Perobelli e Weslem Rodrigues Faria

Abstract

This paper focuses on the role played by the Brazilian economy in global value chains with reference to global and regional contexts. For which we calculate downstream and upstream indicators of global and regional integration and fragmentation of global value chains. We use the full Eora Multiregional Input-Output Table for the period from 1990 to 2015. The main results indicate that Brazilian participation in global value chains increased during this period and became more fragmented internationally, mainly in global terms, but its regional insertion has increased more than its global insertion. Although South America has a small share in value-added trade, Brazil operates as a regional hub, as it is a reference for international trade in this region. In the global context, Brazil plays the role of supplier of intermediate inputs, while in the regional context, Brazil serves as the main production center.

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