ABSTRACT

In this chapter, the author conducts an initial exploration using input-output analysis. The theory of input-output meets the analytical need, and its simplified picture, presenting systemic properties, such as dependence and independence, hierarchy and circulation among sectors, constitutes the empirical fundamental base to identify the most important links for the economical development of the member countries. The author focuses on the international input-output matrix of MERCOSUR for 1990. He evaluates in a comparative way the insertion of the Brazilian economy in MERCOSUR, establishing, through the identification of the degree of industrial development existing among the partner countries, the perspectives for business opportunities in the region. The author presents the input-output structure and examines in a comparative way the value added induced by the final demand of each country, facilitating development potential to be assessed through enhanced commercial interdependence in the region.