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Abstract
This paper analyses the impact of farmed shrimp on the economy
of ten municipalities in the Northeast of Brazil. A model of the
municipal economy is developed and input-output tables are used to
estimate indirect and induced impacts on job, income and municipal
finances. It is concluded that farmed shrimp has a sizable contribution
to job increases, in particular formal employment. Indirect and induced
impacts are reduced because of spillovers to larger municipalities and
other states. Income impacts can be sizable in particular in small counties.
In general, the generated income represents a large share of total
municipal product. In relation to municipal finance, direct contribution
is rather small but indirect, through product increases and mainly transferences
from State and Country taxes may be substantial. In conclusion,
shrimp farms in the selected municipalities, contributes to expand
and stabilize employment, to expand income and product, to increase
municipal finances and to improve life conditions.