Benedict C. Posadas, Ph.D.
Associate Extension and Research Professor of Economics
Mississippi State University
Coastal Research & Extension Center,
Aquaculture Economics Program: http://www.coastal.msstate.edu/aquaculture
Aquatic fish diseases create economic hardships among fish farming households and owners and operators of backwardly- and forwardly-linked businesses.
Aquatic fish diseases create economic hardships among fish farming households and owners and operators of backwardly- and forwardly-linked businesses. Economic recovery requires long-term remedial measures to restore healthy and productive fish populations and allow the resumption of harvesting, processing, distribution and consumption of fish products. Estimates of the adverse socio-economic impact of aquatic animal diseases are necessary information to justify the implementation of appropriate government programs for the fish farming industry.
Economic impact analysis is an attempt to estimate the change in economic activity in a specified region, caused by a specific business, organization, policy, program, project, activity, or other economic events, e.g. disease outbreak. Total economic impact is the sum of direct, indirect and induced impacts. Direct effects express the economic impacts in the sector in which the expenditure was initially made. Indirect impacts result from changes in the economic activity of other industrial sectors which supply goods or services to the sector being evaluated. Induced impacts are the result of personal consumption expenditures by industry employees.
Economic impact analysis estimates output or sales, employment or jobs, labor income, value added and tax revenues. The income, value-added, and output impacts are expressed in dollars for the year specified by the user. Output or sales are the gross sales by businesses within the economic region affected by an activity. Labor income includes personal income including wages and salaries and proprietors’ income or income from self-employment. Employment impacts are expressed in terms of a mix of both full-time and part-time jobs. Value-added is the contribution made to the value of seafood products at each stage of harvesting, processing, and distribution.