Components of structural change in the economy of Minas Gerais between 2008, 2013, and 2016: An input-output analysis

Abstract

The aim of this paper is to investigate the main factors that lead the structural change in Minas Gerais’ economy between 2008 and 2016. In this span of time, there was a significantly increase in the level of economic activity between 2004 and 2010, then the growth deaccelerated (2011-2013) and finally it collapsed (2014-2016). As a result, the manufacture industry shrank, whereas the service sector expanded. To assess this trend, we employed a structural decomposition technique, using the input-output models for Minas Gerais in 2008, 2013 and 2016. The results suggest that the structural decrease of the manufactured sector was to some extent due to negative technological change, revealing the weakening of sectorial linkages.