Agriculture and Productive Structure of the State of Mato Grosso, Brazil : An Input-Output Approach

The purpose of this paper is to empirically show the relative importance of the agricultural sector in the productive framework of Mato Grosso State (Brazil) using an inter-regional input-output model for two regions: Mato Grosso and the rest of Brazil for 1999. The idea was to identify the most important sectors of the economies in question, their connections and the propagation of impacts between regions, besides verifying the impact on the Mato Grosso soybean exports on the total production of other activities. The hypothesis on the importance of the primary sectors for the state economy has been confirmed, and some agricultural sectors and others directly linked to them have been found to be key-sectors, or centres of economic growth in the region under study. Special mention should be given to soybean cultivation in Mato Grosso state, which shows a high employment and income multiplying effect on the economy, as well as being a centre of economic growth and major exporter, attracting exchange gains to the country and positively impacting the production of other sectors. Finally, this paper provides a useful tool for drafting public policies for Mato Grosso state