A comparison of two input-output approaches for investigating regional economic impacts of the forest products industry in the Pacific Northwest and the South
Bm. Cox et Ia. Munn, A comparison of two input-output approaches for investigating regional economic impacts of the forest products industry in the Pacific Northwest and the South, FOREST PROD, 51(6), 2001, pp. 39-46
An input-output analysis using IMPLAN was employed to examine forest-based
industry contributions to regional economies of the South and Pacific North
west regions of the United States and to illustrate differences between the
standard "per dollar" approach of input-output modeling and a "per unit of
output" approach. The total regional impact of the forest-based industry o
n the South's economy is approximately five times that of the industry in t
he Pacific Northwest. The industry's impact as a percentage of the regional
economy is substantially higher in the Pacific Northwest. Output, employme
nt, personal income, and value-added multipliers were computed to depict ma
rginal economic impacts due to changes in output on a per dollar basis. Wit
h the exception of employment, the industry in the South has higher multipl
iers than the industry in the Pacific Northwest. The incremental impacts pe
r million board feet (MMBF) of timber delivered by each region's logging se
ctor to forest-based industries were computed. Incremental impacts to the P
acific Northwest economy per MMBF change in the amount of timber delivered
are greater than in the South. Comparing regional economic impacts employin
g standard multiplier analysis can be misleading because of regional differ
ences in input and output values. Examining incremental contributions to re
gional economies from per unit changes in forest-based industry demand for
timber on a per MMBF basis more accurately illustrates the effects of chang
es in national timber harvest policy.