The Economic Value of Water and Ecosystem Preservation

IM
t+
n
ic
= E
t
ic
⎡⎛
E
× ⎢⎜
⎜
⎢⎣
⎝ E
t+
n
iUS
t
iUS
t ⎞ ⎛ E
⎟
− ⎜
t
⎠ ⎝ E
+ n
US
US
⎞⎤
⎟
⎥
⎠⎥⎦
t + n = current time period
i = industry
55
t = base year
c = County
3. The Competitive Share component is extremely relevant since it identifies
the leading and lagging industries in our study region. It enables us to know how
many jobs were created (or not) due to our region’s competitiveness. Some
industries can grow faster or slower regardless of the total national growth rate.
This is due to unique competitive advantages that some industries and/or regions
have compared to others.
To calculate the CS component, we multiply the county employment of
t
industry i in base year t, E ic by the difference between the industry’s County
t+
n t+
n
Eic
EiUS
growth rate and the industry’s national growth rate, − .
t t
E E
CS
t+
n
ic
= E
t
ic
i = industry
t ⎡⎛
E
× ⎢ ⎜
⎢⎣
⎝ E
+ n
ic
t
ic
⎞ ⎛ E
⎟ −
⎜
⎠ ⎝ E
t + n = current time period
t+
n
iUS
t
iUS
⎞⎤
⎟
⎟⎥
⎠⎥⎦
t = base year
c = County
The sum of all three components equals the change in local employment in
the time-period being studied.
Δ E
ic
= NS
t+
n
ic
+ IM
t+
n
ic
+ CS
t+
n
ic
Input-Output Economic Impact
After deconstructing the various reasons for employment change using shiftshare
analysis, the question becomes: What impact does this change in
employment have. Using input-output modeling allows us to reveal the complete
impact on the economy of employment change in a particular sector.
An input-output model uses a matrix representation of a nation’s (or a
region’s) economy to predict how changes in one industry will affect other
ic
iUS