Understanding Economic Impact, Economic Contribution, and Export Base
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Mastering Economic Analysis: Untangling Impact, Contribution, and Gross Base Methods
This white paper clarifies key differences among three often-confused terms in input-output (I-O) analysis: economic impact analysis, economic contribution analysis, and gross-base analysis. Originating from Wassily Leontief's initial focus on industry purchasing and production behaviors, I-O models have evolved into Social Accounting Matrices (SAM), encompassing broader economic activities including government and household behaviors. The paper focuses on industry output metrics while also discussing employment and other output components. It includes a technical section demonstrating IMPLAN’s recommended contribution analysis methods within the scholarly literature.
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About IMPLAN
IMPLAN is a leading economic analytics company, specializing in providing data-driven insights for informed decision-making. Our advanced cloud-based software empowers organizations to assess the economic impact of events and policies, enabling smarter planning and resource allocation. With a track record of excellence and a commitment to accuracy, IMPLAN is the trusted choice for economic analysis.
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