Brazil – Regional Science Inquiry

Gustavo FERRO

Associate Professor and Independent Researcher, Universidad del CEMA (UCEMA) and CONICET. gaf97@ucema.edu.ar

gferro05@yahoo.com.ar.

M. Priscila RAMOS

Adjunct Professor and Adjunct Researcher, Universidad de Buenos Aires. Facultad de Ciencias Económicas. CONICET-Universidad de Buenos Aires. Instituto Interdisciplinario de Economía Política de Buenos Aires.

mpramos@economicas.uba.ar

Carlos A. ROMERO

Adjunct Professor and Researcher at CONICET-Universidad de Buenos Aires. Instituto Interdisciplinario de Economía Política (IIEP-BAIRES).

cromero@economicas.uba.ar

Abstract

Biogas is generated from substrates derived from agriculture and cattle, agroindustry (slaughterhouses, flour, and sugar mills), urban solid waste, and sewerage treatment. This study measures the current and potential production and gross employment in the biogas value chain in three southern states in Brazil (Paraná, Santa Catarina, and Rio Grande do Sul). We offer two contributions: first, an input-output methodology to focus on the problem of disparate or nonexistent sectoral information, both in monetary and physical units; second, the quantitative results of output and gross job creation derived from shocks at the regional level. We calibrate input-output matrices of the three states with compatibilized sector entries, opening new ones for those not included in official statistics (derived from specific surveys). Once the baseline has been established, we consider three scenarios: demand-pull that achieves full capacity utilization, supply push that addresses new investments in the sector assuming guaranteed demand, and full utilization of substrates supply for biogas production. Employment multipliers are in line with literature on comparative activities found elsewhere in the world. Our findings support the hypothesis of the relatively high labor intensity in the biogas industry.

Keywords: biogas, Brazil, input-output, employment

JEL classification: Q42, R15

pp. 21-37

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Cristiano Cechella

University of Azores

Abstract:

In response to a survey of Fortune 1000 companies enquiring in 2007 about “the biggest barrier in doing business in the world market”, cultural differences ranked at the top of the list. For a long time culture and economy have been treated as broadly independent areas of research The gap to recognize cultural differences was the most common cause of failure for cross-national enterprises. Members of different cultures express different values and priorities when they make and implement decisions. This article seeks to measure the influence of factors such as history, language and culture in foreign direct investment (FDI) of Brazilian companies in Portugal, two countries with deep cultural affinity. Brazil is an emerging country that is increasing your importance as international investor. Firstly, we will describe the increase importance of emerging countries in the world economy, Brazil as international investor and the luso-Brazilian economic relations, especially after 1990s. Secondly, it will take surveys and assesses approaches to explain a multidimensional analysis of the FDI, in particular those related to culture. After that, through a regression analysis based on interviews answered by Brazilian companies in Portugal, we measure by a regression model the influence of the Uppsala School, or Scandinavian, which postulates the importance of culture in corporate investment abroad. While geographic, political and economic approaches have own advantages of their own, the cultural area is particularly useful for a long-term comparative economic analysis.
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Keywords: cultural affinity – enterprises – Foreign Direct Investment – Brazil – Portugal – emerging countries – Stepwise method – Eclectic theory – Scandinavian Theory