export vs local sales

Hi, I am facing this problem when I am estimating the economic impacts of two companies of similar nature except their target market -one sales locally and the other exports. Both of them are financed by external dollars. My question is how to capture the differences in economic impacts created by these two companies.
Was this post helpful?
0 out of 0 found this helpful


1 comment

  • I-O impact analysis only looks at backward linkages - what your sector purchases to produce its output (first round of indirect), what the supplying sectors purchase to produce their output, etc. (subsequent rounds of indirect), and what the employees of these sectors purchase (indirect). Thus, the impact of each of these companies will be identical per dollar of final demand, regardless of where that final demand comes from. If you can argue that local forward-linked businesses would not exist without the local company or would change their behavior (i.e., change output, employment, etc.) if they had to import the commodity, then that additional impact would be the only difference between the two, from a local perspective.

Please sign in to leave a comment.