EVALUATION OF PRODUCTIVE INTERDEPENDENCE, CONSUMPTION AND INCOME STRUCTURE AMONG SÃO PAULO, PARANÁ AND THE REST OF BRAZIL

Abstract

This study aims to evaluate the interdependence relations between the productive, consumption and income structures of São Paulo, Paraná and the Rest of Brazil and how these relations affect the interstate and intrastate income distribution. We use the Leontief-Miyazawa model from the Brazilian interstate input-output matrix for 2011 and household consumption and income data from the Household Budget Survey (POF – 2008/2009) and the National Household Sample Survey (PNAD – 2009). The results suggest that there is a strong income leakage from Paraná to other Brazilian regions, especially to São Paulo, which may contribute to the intensification of regional disparities. It was found that these income leaks occur predominantly in the poorest households, which may also increase the income inequality in Paraná. São Paulo absorbs most of the income generated, however, it is observed that the income leakage from the State to the Rest of Brazil is also those related to the poorest households. Finally, the study evaluates how variations in household income from each group in each region affect the income of the other regions. The interregional leakage found were similar to those through the variation in sectoral demands.