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Abstract

Excerpts: Impacts in the agricultural related industries may be categorized into one of three types. A change in agricultural production will create direct changes of economic activity in (1) industries supplying inputs to agriculture, (2) industries processing agricultural production, and (3) industries supplying consumer goods to those consumers whose income is changed as a direct result of the resource development. The purpose of this report is to present impact multipliers as developed from a modified input-output model and demonstrate their usefulness in estimating the economic consequences of agricultural resource development on related sectors of the economy. The particular methods used to construct and test this modified model are not discussed in detail in this report. However, input-output theory is discussed because an understanding of the basic concepts is necessary to interpret the impact multipliers.

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