Impacts of trade liberalization on countries' sectoral structure of production and trade: A structural decomposition analysis

The findings also show that the substitution of imported inputs is essential to understanding the Brazilian growth path in the 2000s. The positive impact of export growth on total output was offset by the increase in imported inputs, especially in highly technological sectors. The results in Brazil stand in contrast with those in Korea, China, and Germany, where high-tech sectors benefited the most from the substitution.