Weisbrod and Weisbrod (2014) defined an economic impact analysis as 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 event.
The U.S. industries and economic sectors were identified through the North American Industrial Classification System (NAICS). Each industry or sector was identified with a NAICS code and an industry or sector name.
The most recent indicators of the economic contributions of these industries or sectors were compiled from various secondary sources or estimated by using economic impact analysis. The most current economic indicators include total sales impacts and total job or employment impacts which are mostly estimated under an IMPLAN (MIG, 2014) platform. In some cases, the direct employment or job impacts were compiled from the Economic Modeling Specialists (EMSI, 2014) software and data for the states of Alabama and Mississippi.
The IMPLAN economic model generates economic impact estimates in terms of 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 is 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.
The 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 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.
These economic indicators provide the benchmarks for estimating the marginal economic impacts of each progran or regulation. These economic values represent the upper limit of the market impacts of these programs and regulations to the targeted economic sectors.