The aim of this paper was to analyze the relative importance of the steel industry to the state of Espírito Santo, Brazil. The 1990 and 1999 Brazilian input-output matrices and Brazil’s regional accounts - state of Espírito Santo were used to build input-output matrices (1990 and 1999) to this state. Increases in final demand were simulated to analyze the effects on the production of each sector as well as on employment creation in this state. Backward and forward linkage indexes were also computed to twelve sectors with the same purpose. The results show that the steel industry is very important to the capixaba economy especially due to the high multiplier effects in response to increases in final demand. The results show also that the relative importance of the steel industry has grown during the 1990’s in the capixaba economy. When compared to other sectors, the steel industry has also one the higher linkage indexes, which reinforce the relative importance of this industry to the economy analyzed.


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