inter-organization export question

Hello, I am conducting a contribution analysis for a small industry in Maine using a bill of goods approach. I have a question regarding exports. I am trying to figure out how to count the contribution of several businesses who maintain seasonal operations in my study area but are based out-of state. The businesses harvest a raw material, conduct preliminary processing, and then move the product for further processing and sale outside of my study area. The difficulty for me is that the movement of goods out of the study area is within the organizations and other than transportation expenditures no transaction occurs. I am confused by how I should treat the output of these businesses in the context of a contribution analysis since "existing total output" in addition to final demand drives my results. How would i treat output in this context and what impact would this have on my value added statistics? I am working closely with a small survey pool and am still in the process of survey construction so my data has yet to be generated. Please let me know if you need more information and thank you for your time. Sincerely, Brian
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  • Hi Brian. You could count the value of their economic activity during the period of time that these seasonal businesses operate in Maine. In your survey, try to obtain as much information as possible concerning their operations in Maine and the length of those operations. If you are able to obtain detailed information on these businesses, then you can model their economic contribution during time their time in the state. I would think that you would want to know the amount and value of raw materials harvested, the value of further processing of these Raw materials, and the value of warehousing and transporting these materials to other states for further processing. Also, if the small industry is leasing the facility they are operating, then you would want to know how much is the lease and maintenance costs at this site. Additionally, if they are doing some processing while the raw materials are in Maine, you would want to know are there any disposal fees and how much are they. In terms of treating the output of these businesses in the context of a contribution analysis and total output", you could adjust the sectors the industry impact in Maine by replace the IMPLAN data with your data when appropriate to do so. The model would re-calibrate everything in the affected sectors to reflect your changes. Make sure to ask them these and other questions that you might have regarding their operations while in Maine. However, once you get your survey data, we will be able to provide more detail on how to set up your model to do the contribution analysis. We hope this gives you some guidance on your project.
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  • Thanks so much for the prompt reply, it was extremely helpful. One more quick question: For the discussed firms would revenue data then be irrelevant if no final sales are made in Maine? Am I understanding you correctly if I said output was then just the firms' instate contribution? Thanks again and I'll check back in ASAP. Sincerely, Brian
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