The relationship between agriculture, industry and services in the economy of the State of Paraná (2008)

Abstract

The rural-urban relationship is a concern that stands out over time and is recorded in various academic investigations and areas of knowledge. Economics, having as its main focus the study on the search for the perfect allocation of scarce factors to meet unlimited demands, is fundamental in the study of this nature, as it makes it possible to identify elements that can signifi cantly affect the proper functioning of the economic system. Thus, this investigation has as its main objective to examine the interrelationship between economic activities, agricultureindustry-services, in the State of Paraná in 2008, in order to observe the contributions of urban activities to rural activity. The year 2008 is considered a period of major economic changes globally and nationally, due to the developments following the real estate crisis in the United States of America that began in 2007. The proposed methodology is based on the function of multiple linear regression, and the data are the gross added values of these three activities related to the state’s 399 municipalities for the year 2008 (data cut-off). However, these variables are in the form of natural logarithms, because in this way one can check the elasticities between these variables. It can be observed that there was a negative relationship between agriculture and industry, a fact already much discussed in theories on the subject, and a positive relationship between agriculture and services. Thus, it is suggested that the proper functioning of services tends activities to contribute to the process of economic growth/development, given the importance of the rural sector in developing economies.

Keywords: agriculture, industry, services, Gross Added Value, municipality, Paraná State.