Using input‐output data to model the structure of export linkages in global value chains: A Brazil case study

Abstract This paper considers Global Value Chains by developing an open Leontief input‐output model for which household consumption is endogenously determined—the Type II framework. Three specific contributions are: an extension of the Type II input‐output model to a multi‐country setting; its empirical modelling using trade‐linked input‐output tables; and a Brazil case study for exploring how the industrial structure of export linkages impact on employment. Policy dilemmas that emerge for Brazil's industrial strategy focus on its heavy reliance on primary‐based industries, and how it might diversify its trading partners.