Analysis and impact of BNDES FINAME’s accredited companies, financed products and supply chain

Abstract

BNDES FINAME is one of the most traditional public policies for the Brazilian capital goods industry. It provides special financial conditions for acquisition and production of capital goods that meet certain local content requirements. This paper gathers information from the companies accredited for BNDES in order to have their products supported on FINAME, including these products and their supply chain. The database includes 23.145 products from 3.695 capital goods companies and 30.000 companies from the supply chain. The main goal is to merge those information with BNDES financing data from 2016, 2017 and 2018, and also the Brazilian input-output matrix in order to estimate the direct and indirect impact on both production and employment. Estimates showed that each R$1 financed added, on average, another R$0,70 in direct and indirect production. In addition, each R$1 million financed helped on the maintenance of 4 jobs.

Keywords:
BNDES; capital goods; local content policy; input-output matrix