Contribution analysis - using firm level data

Hello, I am conducting a contribution analysis of a "cluster" using a firm database of companies in multiple industries that are roughly part of the same value chain, but that may also export outside of the region. I would like to estimate these firms' collective contribution to the regional economy using an approach similar to the multi-industry contribution analysis here https://implan.com/v4/index.php?option=com_multicategories&view=article&id=660:660&Itemid=14. I believe I will be able to track down estimates of sales for each firm. So, assuming I will be able to get reliable estimates of sales and then map those to IMPLAN sectors, how should I "shock" the system? Would I still need to apply the reciprocal transformation to my own sales amount? Do I still need to edit commodity production to where each industry only produces its primary commodity? I want to capture the approximate supply chain linkages between the firms in the database, but not double count. Thanks
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  • Hello Zack The reciprocal method is only valid for single-industry contribution analyses so you do not want to do that calculation. Just make the edits as described in the multi-industry contribution analysis guide (byproducts and RSC), reconstruct multipliers, then enter your known sales figure. Of course your total output impacts on those sectors will not equal the total output listed in IMPLAN, but that is okay - they will match your known sales values, which is exactly what you want. Please let us know if you have any additional questions. IMPLAN Support Team
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