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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.

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