Contribution Analysis
Hello,
I am trying to use contribution analysis to analyze how backward linkage will impact mining industry. According to the tutorial, an example of agriculture is used. When editing commodity production, it choose to balance the coefficient of all agricultural industry.
My question is: how should I edit the commodity production if I want see how construction industry will contribute Mining industry? Should I just edit all construction industry that qualified to contribute mining? Or I should edit both construction and mining industry?
Thank you. I appreciate.
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Hi Kathleen, New construction (Sectors 34-38), by definition is not purchased through industry production functions (it is investment only) so setting its commodity production to produce only its own commodity and then setting the RPC for that commodity to 0 is unnecessary. In these cases, you can just run a normal impact analysis and then see what the indirect and induced effects are on the mining sector. This is not the case for either of the repair and maintenance sectors (39-40). If you would like to see the effect that either of these sectors have on the mining industry, you will need to perform single or multiple industry contribution analysis as described below: http://www.implan.com/index.php?option=com_content&view=article&id=660%3A660&catid=253%3AKB33&Itemid=70 Thanks!
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