World Aquaculture Magazine - March 2007

Table 1. Direct Employment - Shrimp Culture - by ty1unicipality, 2003. Municipality Farms Laboratories PC's Total Cajueiro da Praia 253 34 76 363 Acarau 513 55 1 31 699 Aracati 1. 180 86 480 1 ,746 Canguaretama 81 7 254 320 1 ,391 Pendencias 1 ,764 225 1 ,989 Porto do Mangue 715 71 5 Goiana 264 261 525 ltapissuma 292 292 Valen9a 297 61 472 830 Jandafra 154 54 230 438 Source: Censo da ABCC (2003). incurred in the municipality bring indirect impacts that transcend the municipality. The estimation of the direct impact on tax collection is made on the basis of the collection of the municipal tributes. For estimation, these tributes were disaggregated in tributes directly charged to the activity (licenses) and other direct tributes, such as the service occupation tax, considered a function of the product. Ten municipalities were selected: Cajueiro da Praia, Acarau, Aracati, Canguaretama, Pendencias, Porto do Mangue, Goiana, Itapissuma, Jandaira and Valern;a. These ten municipalities represent a sizable portion of the production of cultured shrimp in their respective states: 82 percent in Bahia, 75 percent in Pernambuco, 56 percent in Ceara, 52 percent in Rio Grande do Norte and 49 percent in Piaui. The numbers show that the employment effects in those states are concentrated in the selected municipalities, inasmuch as they are more related to the farms and are proportional to the area in exploration. The direct effect on income is smaller, because the aggregation of value and commercialization occur in other municipalities. That is, only a fraction of the income is retained and spent in the city, generating direct income impacts and indirect job effects (induced, through expense), on income and on municipal tax collection. In general, backward and forward linkages, through input acquisition and processing, commercialization and consumption of production, occur predominantly out of the municipality. The base year is 2003, for which data were obtained from the Census of the Marine Shrimp Culture. The basic data include information on the farms, laboratories and processing centers in each municipality. Average prices for the domestic and external market were supplied by the ABCC and producers. Data on use and origin of inputs were obtained directly from the farms, laboratories and processing centers. Additionally, the data were compared with data presented by Souza Junior (2003). Data on the municipal tax collection were collected from the municipal finance service and on state transferences from the State Finance Secretariats. Data on municipal finances were provided on the web site of the Treasury Department. Municipal GDP was estimated using methodology developed for the Research Institute of Applied Economics - IPEA (Vergolino and Maia Gomes 1999). The generated total income is the additional value of the production at the municipal level. The income that is kept in the municipality is the addition of the paid wage bill, of the inputs acquired at the municipal level and of the portion of net income of producers and companies that is spent in the municipality. It is assumed that this portion of net income is integral in the case of only two municipalities: Acarau and Aracati, which possess diversified local commerce and companies of local base; in other words, the biggest companies belong to local groups. In the other municipalities, it was assumed that only the small farms, the proprietors of which live in the cities, consume their income there. Indirect income is obtained from an inputoutput matrix for the Northeast (BNB 2001) based mainly on the work of Rodriguez and Guilhoto (1998). Initially, the generated direct income, Xn, was partitioned, Xn = Xni + Xnj, where, Xni is the aggregate value retained in the municipality and Xnj is the aggregate value spent out of the municipality. As a consequence, the vectors of income and job multipliers were equally partitiond. In the case of income, Y = I ai bi + I aj bj, where ai is an element of the line in the matrix corresponding to income and bi represents the elements of the inverse Leontief matrix ([I - AJ- 1 ) . The origin of each input/expense was considered at farm, laboratory and center of processing level to isolate the sectors of the matrix that represent municipal expenses. On the basis of the partitiond values, indirect income and employment impacts were estimated using traditional methodology of the input-output analysis. WORLD AQUACULTURE 63

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