Forestry in Itasca County's Economy- An Input-Output Analysis

Loading...
Thumbnail Image

View/Download File

Persistent link to this item

Statistics
View Statistics

Journal Title

Journal ISSN

Volume Title

Title

Forestry in Itasca County's Economy- An Input-Output Analysis

Published Date

1970

Publisher

Minnesota Agricultural Experiment Station

Type

Report

Abstract

The dominant characteristic of Itasca County and, indeed, most areas in northeastern Minnesota is change. Population has declined over the past decade in an apparent response to declining employment opportunities for old and young alike. Employment also has shifted from such basic industries as mining and agriculture to manufacturing and services. County planners, including businessmen and public officials, need improved tools for measuring the consequences of change in the economy and society if they are to control and respond to these changes effectively. One such tool is an input-output framework that describes the interdependence of activities within the county and the rest of the world. A 39 by 39 sector input-output model of the Itasca County economy of 1966 was constructed, and multipliers useful for estimating shortrun impacts of possible changes were developed from it. In this analysis, forestry-related sectors such as timber production, sawmilling, and timber operators were given special consideration, since such established activities apparently have room to grow in Itasca County and thereby may represent some opportunities for development. Of added interest is the fact that forestry-related activities in the county have high local community impact multipliers, largely because they result in high local respending of income ratios. Three basic classes of change are described and examples are developed to illustrate the use of the Itasca County input-output results in measuring the effects of change. The examples include a simple change in sales level as illustrated by timber stumpage sales changes, a change in industry structure with reference to the Itasca County resort sector, and the addition of a new business or sector to the local economy illustrated by the construction of a new chip-and-saw mill in the county. Several other kinds of examples also are developed to help explain the uses and limitations of input-output analysis. All of the cases are drawn in varying degrees from real-life concerns in northeastern Minnesota. Finally, by means of additional illustrations, guides for using the inputoutput results are provided. The illustrations point out that high multipliers are not in themselves clear signals for local development. Sales potential also must be evaluated to make effective use of input-output analysis. By illustrating the consequences of land use alternatives, two additional guides are underscored: First, relative uncertainties about alternatives must be considered, and second, income distribution effects as well as level of effect must be taken into account.

Keywords

Description

98 pages

Related to

Replaces

License

Funding information

Isbn identifier

Doi identifier

Previously Published Citation

Suggested citation

Hughes, Jay M.. (1970). Forestry in Itasca County's Economy- An Input-Output Analysis. Retrieved from the University Digital Conservancy, https://hdl.handle.net/11299/141086.

Content distributed via the University Digital Conservancy may be subject to additional license and use restrictions applied by the depositor. By using these files, users agree to the Terms of Use. Materials in the UDC may contain content that is disturbing and/or harmful. For more information, please see our statement on harmful content in digital repositories.