Economic Integration of Minas Gerais: The State's Mosaic through the Lens of the Interregional Input-Output Matrix

Abstract

This study investigates the integration of the Intermediate Geographic Regions (Regiões Geográficas Intermediárias – RGInt) of Minas Gerais (MG) based on interregional trade flows and regional output multipliers. Using an interregional Input-Output Matrix (IOM) estimated for 2019, the study maps the flows among the 13 RGInt, identifying competitive advantages and polarization/propulsion effects. The results indicate that, despite competitiveness in sectors such as agribusiness, the economy of Minas Gerais is regionally fragmented, with low productive integration. The metalworking supply chain shows integrative potential, although it remains concentrated in Belo Horizonte (BH), while the fashion supply chain exhibits limited regional articulation. Productive heterogeneity and the concentration of technological sectors constrain regional synergies. The study highlights the importance of public policies to strengthen strategic value chains in the state.