Decomposition & synergy: a study ofthe interactions and dependence among the 5 Brazilian macro regions

The methodology originally developed by Sonis, Hewings, and Miyazawa (1997) is now expanded and discussed more thoroughly when applied to an interregional table at the level of the 5 macro regions of the Brazilian economy for the year of 1995. The methodology used in this work is based on a partitioned inputoutput system and exploits techniques ofthe Leontiefinverse through the nature ofthe internal and external interdependencies giving by the linkages, which allows to classify the types ofsynergetic interactions within a preset pair-wise hierarchy of economic linkages sub-systems. The results show that: a) the North region has practically no relation with the Northeast region and vice-versa; b) while the South region has some impact on the production ofthe North region, the inverse is not true; c) despite the fact thatthe demands from the Central West region have some impact on the production of the other regions, the production in the Central West region has its relations concentrated with the Southeast and South regions; and d) the South and Southeast regions show to be the most important regions in the system