Oil exploitation regulational framework and effects in the sector and its relation to the whole economy: the case of Brazil’s 1997 change

The world lives a context of energetic pre-crisis, and Brazil has discovered newbig reserves of the “black gold”, which led to changing the regulation framework of itsexploitation in the country. This paper focuses in analysis, from last years, thechanges in oil production and tries to evaluate its effects in growth of production andits links to the rest of Brazilian economy. Using data derived from the I-O matrix in thesupply side, and Balance of Payments data, we try to see if there were meaningfulchanges in the period 1998-2007 from the period 1990-1997 in terms of the oil sectorlinkage to the rest of the economy, technological modernization, its relation toemployment and average earnings, and its impacts in the external insertion of thecountry (exports and dividends balance).