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Creating a Healthy Community - University of Missouri Extension

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Another way to look at your economy is through ECONOMIC BASE ANALYSIS. This<br />

is a methodology that looks at the sources <strong>of</strong> employment and income in a community.<br />

This can paint a good picture <strong>of</strong> what is actually taking place in a community economy<br />

and not what we think may be happening. Many times we do not really know where the<br />

major sources <strong>of</strong> employment and income are coming from in a community.<br />

Government transfer payments, retirees’ income, and other less visible aspects <strong>of</strong> the<br />

economy may play a much larger role than one sees.<br />

Developing economic development strategies that may affect these important, and <strong>of</strong>ten<br />

largest, income sources may do more harm than good to a local economy.<br />

There are many methodologies and sources <strong>of</strong> data to do an economic base analysis.<br />

They will not be gone into here, but most can be accessed through state Census Data<br />

Centers and Cooperative <strong>Extension</strong> Service <strong>of</strong>fices. This is a tested method for painting<br />

another picture to help you understand your community’s economy.<br />

40<br />

Possible Income Sources<br />

Natural Resource Development<br />

Manufacturing<br />

Government<br />

Transfer Payments<br />

Construction<br />

Transportation<br />

Utilities<br />

Trades<br />

Finance<br />

Services<br />

Dividends, Interest, Rent<br />

Subsistence<br />

Passible Sources <strong>of</strong> Employment<br />

Natural Resource Development<br />

Manufacturing<br />

Government<br />

Social Security<br />

Construction<br />

Transportation<br />

Utilities<br />

Trades<br />

Finance<br />

Services<br />

Section II: The Web <strong>of</strong> <strong>Community</strong>

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