ECONOMIC IMPACTS OF THE HOTEL INDUSTRY IN TEXAS:
AN INPUT-OUTPUT ANALYSIS
by
HYOJIN KIM, B.A., M.S.
A DISSERTATION
In
Nutrition, Hospitality, and Retailing
Submitted to the Graduate Faculty
of Texas Tech University in
Partial Fulfillment of
the Requirements for
the Degree of
DOCTOR OF PHILOSOPHY
Approved
Dr. Ben K. Goh
Chair of Committee
Dr. Betty Stout
Dr. Jessica Yuan
Peggy Gordon Miller
Dean of the Graduate School
August, 2012
Copyright 2012, Hyojin Kim
Texas Tech University, Hyojin Kim, August 2012
ACKNOWLEDGEMENTS
First of all, I would like to thank the deepest appreciation to my committee chair
as well as mentor, Dr. Ben K. Goh, who conveyed a spirit of adventure in regard to
research and scholarship and caused great teaching excitement among his graduate
assistants. Without his guidance and persistent support, this dissertation would not have
been possible.
Second of all, I would like to express my gratitude to my committee members, Dr.
Betty L. Stout and Dr. Jessica Yuan who showed me sincerity and encouragement I will
never forget. In particular, when I tried to hurdle all the obstacles in the completion of
this Ph. D. degree, Dr. Stout has been my inspiration. Also, as I have seen Dr. Yuan in
the University Library at times during my course work, her enthusiasm and passion to
research provided me with the way as a true scholar.
Third of all, I have missed my precious family and friend during my Ph.D. degree.
I could not see them when they closed their eyes. However, I would like to take this
opportunity to say that I express my heartfelt love and gratitude to my grandfather (SangDon Lee), cousin (Jae-Yeol Lee), and best friend (Myung-Jin Kim) who are smiling at
me in heaven.
Last but not least, I would like to be thankful to my parents (Sa-Hun Kim and
Hong-Hee Lee), parents-in-law (Jong-Tae Kim and Young-Ok Cho), brothers, my lovely
wife (Jessica Ran Kim) and daughter (Jina A-Yeon Kim), and valued friends (Yong-Hwa
Kim, Dong-Woon Lee, and Won-Pyo Hong) who gave me the strength and courage
capable of enduring adversity and hardship. Thank you very much, all of you!
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Texas Tech University, Hyojin Kim, August 2012
TABLE OF CONTENTS
ACKNOWLEDGEMENTS ............................................................................................ II
ABSTRACT ...................................................................................................................... V
LIST OF TABLES .......................................................................................................... VI
CHAPTER I ...................................................................................................................... 1
INTRODUCTION............................................................................................................. 1
Statement of the Problem ................................................................................................ 4
Purpose of the Study ....................................................................................................... 6
Significance of the Study ................................................................................................ 7
Assumptions of the Input-Output Model ........................................................................ 7
Limitations of the Study .................................................................................................. 9
CHAPTER II ................................................................................................................... 12
LITERATURE REVIEW .............................................................................................. 12
Origin and Application of Input-Output Model ............................................................ 12
Regional Level Input-Output Analysis ......................................................................... 14
National or State Level Input-Output Analysis ............................................................. 15
Ad hoc and Goeldner’s Multipliers ............................................................................... 17
Importance and Usefulness of the Input-Output Analysis ............................................ 20
CHAPTER III ................................................................................................................. 22
METHODOLOGY ......................................................................................................... 22
Scope of the Study......................................................................................................... 22
Process of the Study ...................................................................................................... 23
Data Collection .............................................................................................................. 33
CHAPTER IV.................................................................................................................. 34
RESULTS ........................................................................................................................ 34
An Overview of Texas .................................................................................................. 35
Employment, Labor Income, and Output of the Top Ten Industries and the Hotel
Industry in Texas ........................................................................................................... 36
Analyses of Four Different Sets of Multipliers ............................................................. 41
Type 1 Multiplier for Output ..................................................................................... 42
Type SAM Multiplier for Output .............................................................................. 45
Type 1 and SAM Multipliers for Labor Income........................................................ 48
Type 1 Multiplier for Value Added ........................................................................... 51
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Texas Tech University, Hyojin Kim, August 2012
Type SAM Multiplier for Value Added .................................................................... 53
Type 1 Multiplier for Employment ........................................................................... 55
Type SAM Multiplier for Employment ..................................................................... 57
Summary of Multipliers Related to the Hotel Industry Sectors ................................ 59
The Economic Structure of Relations between the Hotel Industry and Other Industries
....................................................................................................................................... 60
Input-Output Analysis Based on the ISIC ................................................................. 60
Input-Output Analysis Based on the NAICS ............................................................. 66
CHAPTER V ................................................................................................................... 71
CONCLUSIONS, DISCUSSION, AND IMPLICATIONS ......................................... 71
Conclusions ................................................................................................................... 71
Summary of the Findings .......................................................................................... 71
Discussion and Implications.......................................................................................... 72
Limitations and Recommendations for Future Research .............................................. 74
REFERENCES ................................................................................................................ 75
APPENDIX A .................................................................................................................. 79
CATEGORY OF 21 INDUSTRIAL SECTORS BASED ON THE ISIC .................. 79
APPENDIX B .................................................................................................................. 91
CATEGORY OF 21 INDUSTRIAL SECTORS BASED ON THE NAICS .............. 91
APPENDIX C ................................................................................................................ 103
SETS OF MULTIPLIERS ........................................................................................... 103
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Texas Tech University, Hyojin Kim, August 2012
ABSTRACT
By identifying the economic structure of relations between the hotel industry and
other industries within the State of Texas, this study examined data from 2009 from the
Minnesota Implan Group to determine whether or not the hotel industry was a
contributing industry to the State of Texas.
Unlike a simple and straightforward ad-hoc multiplier focusing on an
understanding of temporary economic impacts at a specific time, the input-output
analysis created by Leontief comprehensively and systematically identifies a picture of
producing and purchasing goods and services between entire industrial sectors in an
economic system of a regional or national level. Therefore, the input-output analysis
model, which provides quantified reliable data for policymakers, was applied to this
study.
The findings of this study were as follows: 1) Even though the hotel industry was
helpful to the Texas economy, it made a small contribution to the state compared to
manufacturing and other industries according to multipliers of output, labor income,
value-added, and employment from the input-output analysis. 2) After aggregation into
21 and 20-related sectors based on the ISIC and NAICS, the hotel-related industry
became somehow less interdependent when compared with other-related industries, such
as manufacturing-related, construction, or finance and insurance-related sectors. However,
it is more interdependent on the rest of the Texas economy than the wholesale and retail
trade sectors. 3) Interestingly, while the hotel industry generated more labor income and
employment than did the other accommodation industries, the other accommodation
sectors created more output and value-added than did the hotel industry.
With this quantified economic information from the results, it is anticipated to be
helpful to future plans or policies associated with the hotel industry.
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Texas Tech University, Hyojin Kim, August 2012
LIST OF TABLES
1. Types of Traveler According to Accommodations ......................................................... 4
2. Texas Hotel Performance Report: Percentage Change from 2007 to 2010 .................. 11
3. A Basic Input-Output Accounting Table Provided by the MIG, Inc. ........................... 25
4. Category by the ISIC (International Standard Industrial Classification) ...................... 27
5. Category by the NAICS (North American Industry Classification System) ................ 28
6. Modified Input-Output Accounting Table for the Input-Output Model ....................... 29
7. Matrix Structure of Input Coefficient and Value-Added Coefficient ........................... 30
8. Overall Information in Texas ........................................................................................ 36
9. Gross Regional Product in Texas .................................................................................. 36
10. Top 10 Industries for Employment Compared with the Hotel Industry ..................... 37
11. Top 10 Industries for Labor Income Compared with the Hotel Industry ................... 39
12. Top 10 Industries for Output Compared with the Hotel Industry ............................... 40
13. Top 10 Industries for Value Added Compared with the Hotel Industry..................... 41
14. Type 1 Multiplier for Output with Top Ten-Ranked Industries and the Hotel Industry
........................................................................................................................................... 44
15. Type SAM Multiplier for Output with Top Ten-Ranked Industries and the Hotel
Industry ............................................................................................................................. 47
16. Type 1 and SAM Multipliers for Labor Income with Top Ten-Ranked Industries and
the Hotel Industry ............................................................................................................. 50
17. Type 1 Multiplier for Value Added with Top Ten-Ranked Industries and the Hotel
Industry ............................................................................................................................. 52
18. Type SAM Multiplier for Value Added with Top Ten-Ranked Industries and the
Hotel Industry ................................................................................................................... 54
19. Type 1 Multiplier for Employment with Top Ten-Ranked Industries and the Hotel
Industry ............................................................................................................................. 56
20. Type SAM Multiplier for Employment with Top Ten-Ranked Industries and the
Hotel Industry ................................................................................................................... 58
21. Summary of Multipliers for the Hotel-Related Industries .......................................... 59
22. Income Multiplier Based on the ISIC ......................................................................... 62
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22. Income Multiplier Based on the ISIC (Continued) ..................................................... 63
23. Output Multiplier Based on the ISIC .......................................................................... 64
23. Output Multiplier Based on the ISIC (Continued) ...................................................... 65
24. Income Multiplier Based on the NAICS ..................................................................... 67
24. Income Multiplier Based on the NAICS (Continued) ................................................ 68
25. Output Multiplier Based on the NAICS...................................................................... 69
25. Output Multiplier Based on the NAICS (Continued) ................................................. 70
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Texas Tech University, Hyojin Kim, August 2012
CHAPTER I
INTRODUCTION
In the sense that the tourism and hospitality industries not only help economic
growth but also create higher value-added services and goods, it is an undeniable fact that
they play an important role in the world. The convincing evidence that presents the
economic impact by tourism and hospitality industries is adduced through both
international and private institutes with public confidence. To broadly identify the size
and scale of economic impacts affected by the tourism and hospitality sectors,
information offered by the World Travel and Tourism Council and the Dean Runyan
Associates research company is presented. This will provide explanation for the
recapitulative economic impact of the tourism and hospitality industries. After a
description of the global economic impact generated by the tourism and hospitality
sectors, national and regional economic impacts are depicted. For this study, the United
States and the State of Texas are targeted to demonstrate national and regional economic
impacts. Finally, the uncertain magnitude of the economic impact of the hotel industry is
briefly explained.
The World Travel and Tourism Council’s report (2010) anticipates that the world
gross domestic product (GDP) by travel and tourism will increase from 9.2% (US$5,751
billion) in 2010 to 9.6% (US$11,151 billion) by 2020. As for global employment, the
travel and tourism sectors contributed 8.1% of total employment; that is, 235,758,000
jobs, or 1 in every 12.3 jobs, in 2010. By 2020, they are expected to contribute 9.2% of
total employment; that is, 303,019,000 jobs, or 1 in every 10.9 jobs. Furthermore, it is
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Texas Tech University, Hyojin Kim, August 2012
expected that export earnings generated by international travelers are 6.1% of total
exports (US$1,086 billion) in 2010, and will be 5.2% of total (US$2,160 billion) in 2020.
The meaning of export earnings between the tourism and travel industry and other
industries is different. By attracting and inviting travelers to a touristic destination, the
tourism and travel industry generates earnings, but other industries also earn an income
while tourism and travel offer their services and goods.
Meanwhile, the global travel and tourism economic research by the World Travel
and Tourism Council shows that the United States is expected to produce US$1,375.9
billion in 2010, and US$2,485.7 billion by 2020, the largest travel and tourism economy
GDP in the world. The research also shows that the travel and tourism economy
employment of the United States is expected to be the third largest both in 2010
(13,697,000 jobs), and by 2020 (16,877,000 jobs), next to the first-ranked China and the
second-ranked India. The United States is the first-ranked country anticipated to earn the
largest profit from travel and tourism visitor exports in 2010 and 2020, at US$140.8
billion and US$284.9 billion, respectively.
The contribution of travel and tourism is especially important in the State of
Texas. Apart from oil and gas production and manufacture-related industries, the travel
and tourism industry in Texas is regarded as one of the most important leading exportoriented industries. The spending by travelers creates a higher GDP, more jobs, and
increased earnings. According to Dean Runyan Associates’ (2010), and their research
emphasizing the economic significance of the travel industry in Texas from 1990 to 2009,
the GDP of the travel industry in Texas was $22.4 billion, which was similar to the GDP
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of microelectronics and the agriculture/food production industries in 2009. Also, in the
same calendar year, the dollars spent by travelers in Texas directly contributed to 526,000
jobs and $15.8 billion in earnings. These statistics represent the direct impact of the travel
industry, and they do not include indirect and induced impacts. About 394,500 out of the
526,000 jobs were relevant to the hospitality sector, including jobs in accommodation,
food services, arts, entertainment, and recreation. Other industries obtaining a portion of
revenues from the travel industry generated 462,000 jobs and $15.9 billion in earnings.
Dean Runyan Associates’ (2010) research, The Economic Impact of Travel on
Texas, classified types of accommodations into five categories: Hotel/Motel,
Campground, Private Home, Vacation Home, and Day Traveler. Travelers staying in
hotels/motels in Texas spent $23,617 million during 2009. As a result, the
accommodation and food service industry created 285,400 jobs and $7,430 million in
earnings over the year. Because the accommodation and food service industry is not
separated into individual industries in the research, the total amount of earnings by the
accommodation and food service industries were shown. The following table presents the
types of travelers staying at each of the five types of accommodations.
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Texas Tech University, Hyojin Kim, August 2012
Table 1. Types of Traveler According to Accommodations
Types of Traveler
Description
Hotel/Motel
Travelers staying in hotels, motels, resorts, bed & breakfast
establishments, and other commercial accommodations,
including a lodging tax
Campground
Travelers staying in either a private or public campground
Private Home
Travelers staying as guests with friends or relatives
Vacation Home
Travelers using their own vacation home or timeshare, and those
borrowing or renting a vacation home, including a lodging tax
Both in-state and out-of-state residents who travel without an
overnight stay at a destination in Texas
Note: Adapted from The Economic Impact of Travel on Texas, by Dean Runyan, 2010, p.
111.
A ripple effect of the tourism and hospitality industries on the regional and global
Day Traveler
economies is considerably grander in comparison with other industries. Apart from the
economic impact of other industries, the focus of this study is on the economic impact of
the hotel industry in the State of Texas using the input-output model and analysis.
Statement of the Problem
As the third-ranked export industry in Texas after the oil and auto relatedindustries (Fletcher, 1989), tourism and hospitality sectors occupy most of the export
market, and are considered “the goose that lays the golden eggs” by tourism and
hospitality professionals and practitioners. Since research associated with tourism and
hospitality has become popular and prevalent in academia, many scholars are taking great
interest in the analysis of the economic impact of this industry. Despite much interest in
the research of the economic impact, very few studies on the economic impact of the
tourism and hospitality fields have been investigated. In addition, studies of the input4
Texas Tech University, Hyojin Kim, August 2012
output model at the national level have often been conducted, but studies aiming at the
hotel industry of a particular state in the United States have rarely been explored.
Together with this issue, by identifying the economic structure of relations between the
hotel industry and other industries within the State of Texas, this study examines the
contribution of the hotel industry to the Texas community. And, the degree to which the
hotel industry influences the state in comparison to other industries, will be examined. It
is expected that the results of the analysis will be helpful to the government of the State
of Texas for policies in state development.
Among the 50 states in the United States, next to the State of Alaska, which has
an area of 586,412 square miles, the State of Texas has the second largest geographical
area of 268,820 square miles. Additionally, as of 2009, Texas had the second highest
GDP with $1,145 billion, which totaled 8.09% of the U.S. GDP. The State of California
had the highest GDP of $1,891 billion, which accounted for 13.37% of the U.S. GDP
(“Top 10 state GDPs in the United States,” 2011). Notwithstanding the gigantic
geographic and economic size of Texas, little research has been conducted in targeting
the State of Texas. Researchers have not exhausted the issue of tourism and hospitality
with respect to the economical impact they have on a state such as Texas. Although it
had been made aware that tourism and hospitality-related sectors take part in the Texas
economy, the way in which the hotel industry sector brings out the Texas economy has
not been thoroughly researched. Both American and international economists have
argued that, in terms of the effects of induced value-added, employment, and output, the
economic impact of the tourism and hospitality industry greatly outweighs one of the
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Texas Tech University, Hyojin Kim, August 2012
primary or secondary industries, such as agricultural-related or manufacturing-related
industry (Daniels & Norman, 2003; Fletcher, 1989; Liu, 1984; McHone & Rungeling,
2000; Mescon & Vozikis, 1985). Therefore, taking the geographical and economic scales
into consideration, it is worthwhile to investigate the economic impact of the hotel
industry and other industries on the State of Texas.
Purpose of the Study
This study analyzes the economic impact of the hotel industry on the State of
Texas. Specifically, it examines how the hotel industry in Texas contributes to the
economy of Texas (i.e., answering whether the hotel industry creates output, earnings or
income, and employment). If such contributions exist in Texas, they will describe how
much the output, earnings, and employment from the hotel industry influence the
economy of Texas. In addition, the study analyzes whether there are relationships
between the hotel industry and other industries in Texas. If such relationships are present,
the study will scrutinize how close the relationships are, and to what degree they rely on
one another.
In short, the two primary aims of this study are the following:
1) To identify how much the earnings and employment generated by the hotel
industry in Texas affect the economy of Texas.
2) To examine the interdependent relationships between the hotel industry and
other industries, using the input-output analysis.
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Texas Tech University, Hyojin Kim, August 2012
Significance of the Study
The primary importance of the study is to provide quantified information
concerning the comprehensive economic impact of the hotel industry on the State of
Texas. This study will provide such information to a group of academia, government,
industry, and other organizations. A part of quantified economic information enables
such groups to make better decisions for future long- or short-term plans related to the
hotel industry. Significantly, few studies on economic impact have used the input-output
model in the tourism and hospitality sector, and lately, empirical scholars in tourism and
hospitality academia have placed little attention on the subject of economic impact.
Finally, the use of reliable secondary data for the study becomes significant.
Assumptions of the Input-Output Model
The input-output model for tourism and hospitality study begins with four
underlying assumptions. First, the input-output model assumes that additional production
and the consequential cost are equally applied to the previous production cost without
any economic consideration of a volume of production. In other words, based on linear
homogeneous production function (Briassoulis, 1991), this assumption disregards
economies of scale, and is irrespective of the possibility that input proportion is apt to
change in accordance with technical improvement, percentage of import, and fluctuation
of prices for raw materials.
Second, practically, producers make an attempt to maximize profit after adjusting
the input proportion of production factors in line with the adoption of new technology
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and price change of a particular material, whereas the input-output model diverges from
the issue. For instance, a cement plant tends to substitute crude oil for bituminous coal,
and change the previous proportion of inputs when an upsurge in crude oil occurs. A
cement plant depends heavily on bituminous coal and depends less on crude oil when a
plant produces the same quantity of cement as before. However, this circumstance is not
applied to the input-output model. As a result, some scholars maintain that non-linear
production function is likely to be more appropriate to reality rather than the linear
production function.
Third, the input-output model assumes that each industry produces only a single
homogeneous commodity, and does not generate kindred commodity. The assumption
that goods and services that tourists consume is homogenous to goods and services that
local residents use, is an inadequate consideration from the practical view that the pattern
of consumption in a local community is determined by a local custom and tradition. More
specifically, a service, a price, and a profit margin generated by international tourists
consuming accommodations, foods, and shopping are different from the ones spent by
local community residents. Therefore, realistically, each sector of industry is considered
as producing and providing multiple and heterogeneous goods and services for one
another.
Finally, it is assumed that supply always exceeds demand because every single
industry is under the status of underemployment. That is, the additional supply in an
economic system meets the additional demand. However, suppose a cement plant does
not provide cement to a building industry in a timely manner because of a shortage of
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Texas Tech University, Hyojin Kim, August 2012
cement materials. The assumption that supply for each and every industry fills up demand
in any given region is violated.
Despite flaws in each of the four assumptions, the input-output model, as the best
analytical means to identify the inter-industrial relationships and the economic structures
in a regional or national level, is applied to this study. This is because of several helpful
contributions. It is a relatively logical explanation of a series of relations between
industrial sectors; it easily traces direct, indirect, and even induced effects; and it is a
major means of prediction of the size and connectivity between different industrial
sectors.
Limitations of the Study
First of all, this study is restricted in the input-output model as it only uses
IMPLAN (IMpact analysis for PLANning) database and software created by the MIG
(Minnesota Implan Group), Inc. This model has been chosen in spite of the emergence of
recent varied quantitative analytic models, along with many efforts by economy-related
academics, such as computable general equilibrium (CGE), input-output (I/O), socioeconomic benefit assessment system (SEBAS), and show-me model for the analysis of
economic impacts. The input-output model was chosen because compared to other
models developed by many researchers, it has been simplified to be easily structuredbased on inter-industry tables, and to represent multipliers as summarized results of
analysis (Munn, Hussain, Spurlock, & Henderson, 2010). Furthermore, to analyze a
regional or a national level economy, the input-output model offers policymakers and
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governments a variety of quantitative industrial information for a better decision-making
process.
Another constraint for this study is a state-level limitation to the State of Texas
and a time period limited to 2009. This is because the MIG, Inc. provides 2009 state level
data as up-to-the-minute data, and because collecting data for all 50 states involves
prohibitive costs. Also, the crash of 2008 in Texas has unexpectedly been incurred
because of not only September hurricanes, such as Ike, Dolly, and Gustav, but also the
economic downturn of 2008. These natural disaster and recession negatively influenced
the economy of Texas. As one of unhelpful results, the average occupancy rate for a hotel
room was recorded as the lowest % for the past four years (55% in 2010, 53.9% in 2009,
and 61.4% in both 2008 and 2007). Table 2 shows a negative growth of room revenue,
rooms sold, occupancy, price, and REVPAR (Revenue Per Available Room) in 2009
indicating the economic recession of the hotel industry in Texas. Therefore, the 2009
input-output data affected by impermanent elements of the economic downturn can be
underestimated, compared with the counterpart datum of 2008 and 2010.
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Table 2. Texas Hotel Performance Report: Percentage Change from 2007 to 2010
Room
Room
Rooms
%
$
$
Supply Revenue $
Sold
Occ
Price
REVPAR
2007
1st
3.0
9.2
2.9
-0.2
6.2
6.0
2nd
3.3
9.4
3.4
0.2
5.8
4.0
rd
3
3.0
8.0
3.0
0.0
4.8
4.8
4th
2.9
8.6
3.3
0.3
5.1
5.4
2008
1st
2.8
7.6
1.4
-1.4
6.1
4.6
2nd
3.3
9.1
3.4
0.0
5.5
5.6
rd
3
3.4
9.3
4.3
0.9
4.8
5.7
4th
2.4
8.2
3.4
1.0
4.7
5.7
st
2009
1
3.0
-8.5
-5.3
-7.9
-3.4
-11.2
2nd
3.6
-16.0
-10.1
-13.2
-6.6
-18.9
rd
3
4.3
-16.6
-10.2
-13.8
-7.1
-20.0
4th
4.6
-19.3
-11.4
-15.3
-9.0
-22.9
st
2010
1
6.1
-2.8
2.3
-3.7
-5.0
-8.4
2nd
5.9
7.2
8.5
2.6
-1.2
1.3
rd
3
5.0
9.5
9.5
4.2
-0.1
4.3
4th
5.0
12.5
9.4
4.3
2.9
7..3
Note: Occ and REVPAR denote Occupancy and REVenue Per Available Room,
respectively.
Source: Texas Hotel Performance Report (2010), by Office of the Governor, Economic
Development & Tourism
Year
Quarter
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Texas Tech University, Hyojin Kim, August 2012
CHAPTER II
LITERATURE REVIEW
Neither much attention of economic impact analysis for the tourism and
hospitality discipline, nor a fruitful amount of discussion and research, has been involved
with respect to the issue of economic effects. Under a lack of related publications and
literature, the sequence of the literature review for this study was followed by 1) origin
and application of the input-output model, 2) regional level input-output analysis, 3)
national or state level input-output analysis, 4) ad hoc and Goeldner’s multiplier, and 5)
importance and usefulness of the input-output analysis. Although the studies of the ad
hoc and Goeldner’s multipliers should be excluded because of the absence of the inputoutput model, they are supplemented to this study because both the input-output and the
two multiplier analyses have the quantifiable measure of economic impact in common.
Origin and Application of Input-Output Model
The advent of approaches of econometrics to distinguish modern economics, the
technical improvement of computerized statistics and the trend of an expansion of
statistical data have spurred the advancement of positivism analysis for economic
conditions. From the 1930s and 1940s, both national income analysis based on Keynes’
effective demand theory and input-output analysis developed by Wassily Leontief (19051999) were inaugurated as positivism analytical systems for the macro-economic state as
well as the monumental achievements for modern positive economics. Leontief’s
distinguished accomplishments earned him the Alfred Nobel Memorial Prize in 1973.
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Texas Tech University, Hyojin Kim, August 2012
While the national income analysis focuses on the income cycle, which analyzes the
process of consumption and investment generated by various incomes, including wages,
rents, interests, or profits from production activities in the entire national economic
activity system, the input-output analysis evaluates the ripple effect on private
consumption, government consumption, and exports in the national, state, or regional
level community from the view of interdependent relationships between the industrial
sectors.
The first approach of input-output analysis for a national economic impact
targeting the economy of the United States was attempted by Leontief’s (1936) work,
Quantitative Input and Output Relations in the Economic Systems of the United States. It
represented the flow of all goods and services in an easily accessible manner. Years later,
he established the input-output accounting table showing the production structure in the
United States, and published the results of his research work (W. Leontief, 1951). This
work became a precursor to the input-output analysis.
After the usefulness of the input-output analysis concerning the economic impact
on output, income, and employment in a national or regional level community was
demonstrated, studies on the input-output analysis evolved into both the related theories
and applications from countries around the world. This included Italy, South Korea,
United Kingdom, Turkey, and Japan (Baster, 1980; Cline & Seidl, 2010; John L.
Crompton, Lee, & Shuster, 2001; Gelan, 2003; Liu, 1984). Additionally, from the
beginning of Isard’s (1951) work, Interregional and Regional Input-Output Analysis: A
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Model of a Space-Economy, much research on the application of regional-level economy
has been performed.
The initial study of applying the input-output analysis to the tourism and
hospitality sector was presented in Harmston’s (1960) work, Indirect Effect of Traveler
Expenditures in a Western Community.
Regional Level Input-Output Analysis
Among recent recreation-associated activity research, a few subjects have been
attractive to researchers interested in the input-output analysis (Cline & Seidl, 2010;
Daniels & Norman, 2003; Munn et al., 2010). To quantify the economic impact of
spending on fishing, hunting, and wildlife watching, Munn et al. (2010) examined
indirect and induced expenses implying secondary impacts that such recreation activities’
spending made except for the direct expenditures. The focus of their study was more on
the regional economic impact of outdoor recreation in the southeast U.S. than on the state
or national economic impact of wildlife recreation. They have maintained that the
economic impact at the regional level was sometimes underestimated by the economic
impact at the state-level.
To evaluate regional economic impact of the change of natural resources, Cline
and Seidl (2010) simulated several scenarios based on visitor surveys with respect to the
issue of protecting ranch and water quality in Chaffee County, Colorado. Although this
research tends to oversimplify the model of regional economy, it makes some
contribution to the research community associated with the input-output analysis. It
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Texas Tech University, Hyojin Kim, August 2012
provides a first attempt of estimating the relationship between the regional economy and
natural resources, and a guidebook to simulate more specific scenarios between possible
policies for future research.
Daniel and Norman (2003) estimated the economic impacts attributable to seven
sport tourism events held in the State of South Carolina through the primary data
collection. Together with Walo et al. ("Achieving Economic Benefits at Local Events: A
Case Study of a Local Sports Event," 1996), Daniel and Norman (2003) asserted the
importance of small local events to revitalize the economy of local community. Unlike a
mega or country level event, such as the FIFA World Cup and Olympics, which involves
a large cost at national level, they contended that small events in a local community do
not require unnecessary infrastructure and high-priced facilities. As a result of smaller
events, a community received significant economic benefits from spending by nonresident sporting participants.
Mescon and Vozikis (1985) performed a study relating to the cruise industry at
the port of Miami, Florida, which is the primary beneficial industry at the south Florida
region. This study sought to estimate and predict the economic impact of the cruise
industry, with output, income, and employment multiplier, using a regional input-output
model. They attempted, unlike the study stressing direct impacts of the cruise industry
(Durr, 1955), to emphasize both a direct and an indirect impact of the cruise industry on
the regional economy.
National or State Level Input-Output Analysis
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Texas Tech University, Hyojin Kim, August 2012
Lee and Taylor (2005) revealed that, apart from the negative evaluation of
“aversion and diversion” (p. 595) generated by the 2002 Korea-Japan FIFA World Cup,
the economic impacts were measured for output with US$1.35 billion; income with
US$307 million; and value added with US$713 million for South Korea. Using the
mathematical input-output model, they utilized the equation, X = AX + Y – M. ‘X’
denotes a vector of total gross output, ‘A’ denotes a matrix of input coefficients with
household sector, ‘Y’ denotes a vector of final demand, and ‘M’ denotes a vector of
imports.
As Braun (1992) investigated the economic impact of the convention industry in
Orlando, Florida, Kim et al (2003) estimated the expenditures by foreign delegates and
by convention hosts in 2000 to be about US$66 million and about US$64 million,
respectively. From these results, although they did not present a specific mathematical
input-output model and a method of how to measure multipliers for output, employment,
income, and value-added effect driven by the convention industry, they verified that the
convention industry makes a significant contribution to the Korean economy.
Other than the study of the economic impact of the convention industry, the study
of estimating multiplier effects of output, value added, income, and employment
attributable to the exhibition industry was carried out in Korea (Kim & Chon, 2009).
While the study produced specific quantities of direct and indirect impact using the inputoutput model, and made a contribution to the Korean exhibition industry, Kim and Chon
(2009) should have attempted to minimize two conclusive flaws. First, the study was
confined to Seoul, the capital of Korea, and was regarded as a national level input-output
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Texas Tech University, Hyojin Kim, August 2012
analysis because the COEX (COnvention and EXhibition center) in Seoul is the largest
exhibition company. Second, strictly separating the source of expenditure into three
categories (expenditure by exhibition hosts, by exhibitors, and by exhibition attendees),
was an immoderate method since the three expenditure sources could be duplicated by
exhibitors and attendees when a survey interview asked exhibitors and attendees to fill
out a questionnaire.
In Turkey, in order to awaken the Turkish government to the dangers of little
attention to the tourism industry, the input-output analysis using tourist-income
multipliers was undertaken (Liu, 1984). Interestingly, their claim that “those tourists who
spend the most do not necessarily have the greatest impact on the economy in terms of
the propensity to generate income to residents” (p. 287) was parallel to Gelan (2003)’s
argument. He asserted that for reliable estimation of local economic impacts, “the most
important indicator is the proportion of local product in the total value of goods and
services purchased by tourists” (p. 423). However, the study was not free of two
vulnerable spots: oversimplified classification of types of tourist for Turkey to assess the
economic impact of each type of tourist (Cohen) and the analysis of only income effects,
except for employment and output effects determined by types of tourist.
Ad hoc and Goeldner’s Multipliers
In addition to the input-output analysis, which belongs to a systematic multiplier,
to assess the economic impacts of varied events and a particular industry in a regional
and national community, there is an ad hoc multiplier. This was created by a researcher
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Texas Tech University, Hyojin Kim, August 2012
who had the particular purpose for understanding the impacts attributable to a local or
national event, such as a wine festival and the Olympic game. An ad hoc multiplier has
many methodological debates and limitations ("Achieving Economic Benefits at Local
Events: A Case Study of a Local Sports Event," 1996; B. Archer, 1984; J. L. Crompton,
1999; John L. Crompton & National Recreation and Park Association. Division of
Professional, 1999; "Monitoring Visitor Expenditure Associated with Attendance at
Sporting Events: An Experimental Assessment of the Diary and Recall Methods," 1995).
As the input-output model has its controversies, this study is restricted to the presentation
of studies in conjunction with an ad hoc multiplier because the subjects relating to
methodologies and limitations of an ad hoc multiplier are beyond this study.
In recent studies associated with ad hoc multiplier, Gelan (2003) estimated the
economic impacts attributable to the golf tournament event, the 1999 British Open at
Carnoustie, United Kingdom. In the methodological aspect using a questionnaire to
assess the economic impacts of a local event in a regional community, this study could
become arguable among many economists (J. L. Crompton, 1999; John L. Crompton &
National Recreation and Park Association. Division of Professional, 1999) because of
subjective estimation by respondents. But it has made a contribution to the improvement
of estimating a regional economic impact driven by a sport event. There were findings
that out of the entire goods and services paid by visitors, regional goods and services
were of most importance to the local economy. This study was carried out with much
effort to accurately develop a methodological framework.
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Texas Tech University, Hyojin Kim, August 2012
The 1997 Newport Folk Festival, which was a local festival and held at Fort
Adams State Park in Newport, Rhode Island, was assessed by Tyrrell and Johnston
(2001). They researched the direct economic impacts of such tourist events. It is
agreeable that as they pointed out, the methods to measure the economic impact of tourist
events must be valid, and the input-output model leads to fallacious results without
appropriate and accurate measurement of the direct tourist spending on an event
(Briassoulis, 1991; McHone & Rungeling, 2000; Steinback, 1999; Wagner, 1997; Yuan
& Yuan, 1996). However, given that most studies that estimate the economic impacts
with a survey are not objective, the misleading methodology necessarily occurs in any
given economic impact study. One of the strengths in their study was that it distinguished
between gross economic expenditure and actual net economic expenditure that flew into
the local community.
Another recent economic impact-related study was the work by Crompton, Lee,
and Shuster (2001), for a festival held in Ocean City, Maryland. They made much effort
on their study to collect accurate data samples and suggested an instructive caveat; such
as “exclusion of local residents, exclusion of time-switchers and casuals, use of income
rather than sales measures, and careful interpretation of employment measures” (p. 81),
while a researcher undertakes the study associated with estimation of economic impact to
a community. Although their insistence that the numbers quantified from economic
impact analysis is just “best guess” (p.80) was significant reason, their study had
limitations. The measure of the accurate number of participants in the festival was
unrealizable, as seen in the method of estimating attendance at festival; “if 25 people
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Texas Tech University, Hyojin Kim, August 2012
were observed entering in a 15-minute count at gate A, then the number estimated for the
1-hour period was 100” (p. 82). They ignored the point that spending on the festival by
local residents could be considerably motivated by the spending of time-switchers and
casuals. In other words, local residents could follow as much spending as time-switchers
and casuals.
In addition to examples of the ad hoc multiplier, Goeldner and Ritchie (2003)
suggested the following formula for the multiplier when they explained the income
multiplier on their book.
Multiplier =
The MPC denotes marginal propensity to consume. With this formula, they
maintained the necessity and usefulness of the economic multiplier in a tourism
destination. However, because this formula was not appropriate to the input-output
analysis presenting structural inter-relationship between industries, it was not adopted to
the study. In addition, to receive a multiplier from the input-output analysis, the inputoutput accounting table comprising specific transactions among industries, final demand,
imports, and value added is needed. Therefore, the multiplier created by Goeldner and
Ritchie (2003) was not applicable to this study owing to the absence of components in an
input-output table.
Importance and Usefulness of the Input-Output Analysis
Currently, as shown in many examples using the input-output model, the inputoutput analysis became the best analytical measure to identify the economic structure of a
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Texas Tech University, Hyojin Kim, August 2012
country and the inter-industrial relationship, due to significance and value of the analysis.
The following rationale explains why the input-output analysis is more important than
other analyses of economic impacts, such as computable general equilibrium (CGE) and
socio-economic benefit assessment system (SEBAS). First, by utilizing consistent and
systematic approach to analysis of economic impact, the input-output analysis relatively
investigates a logical linkage relationship between the hotel industry and other industries.
Second, not only direct effect but also indirect and induced effects can be tracked down
without difficulty, compared to other techniques of economic analysis. Third, the inputoutput analysis turns out to be a leading tool to predict the size of a promising industrial
sector and the connection of regional economy in near future. Specifically speaking,
demand, production, employment, and investment are predictable. Plus, the results of the
analysis are of great value as fundamental economic policy information for a
development project and the use of natural resources (W. Isard, 1960).
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Texas Tech University, Hyojin Kim, August 2012
CHAPTER III
METHODOLOGY
Scope of the Study
The spatial and time scopes for this study are confined to the State of Texas and
the year 2009. Social, cultural, and environmental impacts are not investigated; only the
economic impact of the hotel industry is studied. Generally, among many
econometricians, the measurement and the evaluation of economic impacts of a particular
industry are categorized into two types: 1) ad-hoc multiplier, including Keynesian-based
and economic-based theory, and 2) systematic multiplier comprising input-output
analysis. The ad-hoc multiplier with a particular purpose was named by Archer (1977;
1974) for the temporary measurement of tourism effects. However, this multiplier
fundamentally comes from the idea of the Keynesian-based theory. For a detailed
understanding of this concept, it is necessary to refer to publications by Keynes and many
Keynesian advocates (De Angelis, 2000; Elias, 1950; Grether & Keynes, 1933; Kent,
2007; Keynes, 1933, 1959, 1965; Rochon & Gnos, 2007; Trigg & Hartwig, 2010).
Unlike a simple and straightforward ad-hoc multiplier focusing on an
understanding of temporary economic impacts at a specific time, the input-output
analysis created by Leontief (1953) comprehensively and systematically identifies a
picture of producing and purchasing goods and services between entire industrial sectors
in an economic system at a regional or national level. Through this process, the inputoutput analysis shows the direct and indirect effects, as well as the induced effects,
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Texas Tech University, Hyojin Kim, August 2012
among the industrial sectors at full length. The input-output analysis worth providing
quantified reliable data for policymakers is applied to this study.
Process of the Study
The process of the study consists of 1) obtaining the input-output accounting table
from the MIG, Inc.; 2) grouping a large number of 508 industrial sectors into a smaller
number of 88 and 21 related-industrial sectors aggregated by the ISIC (International
Standard Industrial Classification) of the UN (United Nation), and 20 industrial sectors
mingled by the NAICS (North American Industry Classification System); 3) modeling
the input-output accounting table; 4) analyzing multipliers; and 5) interpreting and
discussing the resulting sets of multipliers.
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Texas Tech University, Hyojin Kim, August 2012
Figure 1. Process of the Study
First, the input-output accounting table is obtained from the MIG, Inc. that serves
the complete data set of the social accounting matrix, which is switched to the industry by
industry formulation of input-output accounts. The input-output accounting table
provided by the MIG, Inc. is presented as Table 3 below. The MIG, Inc. offers diverse
techniques and information to a researcher, but a simple table below is illustrated to
better understand the input-output accounting table.
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Texas Tech University, Hyojin Kim, August 2012
Table 3. A Basic Input-Output Accounting Table Provided by the MIG, Inc.
Industry
Commodity
Factors
Institution
Exports
Total
Total
Industry
Output
Total
Commodity
Output
Total
Factor
Income
Total
Institutional
Income
Industry
Commodity
Factors
Institution
Total
Imports
Imports
TOTAL
Total
Industry
Outlay
Total
Commodity
Outlay
Total
Factor
Outlay
Total
Institutional
Expenditures
Total
Exports
Note: Adapted from the MIG, Inc., 2011, p. 12.
Second, the database from the MIG, Inc. provides the numbers for 508 industrial
sectors, depending on each state in the U.S. The State of Texas from the database has the
numbers for 440 industrial sectors. Two of the 440 industrial sectors, the hotel and other
accommodations industries, are compared with the other 438 industrial sectors to
determine its economic impact. In order to ease the difficulty in making an input-output
accounting table with 440 industrial sectors, and in interpreting the results, the 440
industrial sectors were grouped into a smaller number of related industries, such as
manufacture-related and agriculture-related industry. Because the SAS (Statistical
Analysis System) 9.2 IML (interactive Matrix Language) software allows the database
user to create its own groupings, this study makes an attempt to classify 440 industrial
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Texas Tech University, Hyojin Kim, August 2012
sectors into 21 industrial sectors in terms of the ISIC of the UN, and 20 industrial sectors
in terms of the NAICS (see Table 4 and 5).
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Texas Tech University, Hyojin Kim, August 2012
Table 4. Category by the ISIC (International Standard Industrial Classification)
No.
Category of Related-Industry
1
Agriculture, forestry and fishing
2
Mining and quarrying
3
Manufacturing
4
Electricity, gas, steam and air conditioning supply
5
Water supply; sewerage, waste management and remediation activities
6
Construction
7
Wholesale and retail trade; repair of motor vehicles and motorcycles
8
Transportation and storage
9
Accommodation and food service activities
10
Information and communication
11
Financial and insurance activities
12
Real estate activities
13
Professional, scientific and technical activities
14
Administrative and support service activities
15
Public administration and defense; compulsory social security
16
Education
17
Human health and social work activities
18
Arts, entertainment and recreation
19
Other service activities
20
Activities of households as employers; undifferentiated goods- and services-producing
activities of households for own use
21
Activities of extraterritorial organizations and bodies
Note: Each industry is grouped into 21 industrial sectors based on the ISIC Revision 4.
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Texas Tech University, Hyojin Kim, August 2012
Table 5. Category by the NAICS (North American Industry Classification System)
No.
Sector
Category of Related-Industry
1
11
Agriculture, Forestry, Fishing and Hunting
2
21
Mining, Quarrying, and Oil and Gas Extraction
3
22
Utilities
4
23
Construction
5
31-33
6
42
7
44-45
Retail Trade
8
48-49
Transportation and Warehousing
9
51
Information
10
52
Finance and Insurance
11
53
Real Estate and Rental and Leasing
12
54
Professional, Scientific, and Technical Services
13
55
14
56
Management of Companies and Enterprises
Administrative and Support and Waste Management and Remediation
Services
15
61
Educational Services
16
62
Health Care and Social Assistance
17
71
Arts, Entertainment, and Recreation
18
72
Accommodation and Food Services
19
81
Other Services (except Public Administration)
20
92
Public Administration
Manufacturing
Wholesale Trade
Note: Each industry is grouped into 20 industrial sectors based on the 2007 NAICS.
Third, under the given input-output accounting table, to conduct the input-output
analysis, the mathematical model of the input-output accounting table is needed. The
input-output accounting table from the database of the MIG, Inc. can be created as the
following table (see Table 6).
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Texas Tech University, Hyojin Kim, August 2012
Table 6. Modified Input-Output Accounting Table for the Input-Output Model
Intermediate Demands (Output)
Intermediate
Supplies
(Input)
ValueAdded
Total Gross
Outlays
Final
Demand
X11
X12
.....
X1n
F1
X21
X22
.....
X2n
F2
:
:
Xij
:
:
Xn1
Xn2
.....
Xnn
Fn
V1
V2
.....
Vn
X1
X2
.....
Xn
Total
Final
Demand
∑X1j +
F1
∑X2j +
F2
:
∑Xnj +
Fn
Imports
Total
Gross
Output
M1
X1
M2
X2
:
:
Mn
Xn
From the modified input-output accounting table, the following matrix table for
the input-output model is structured (see Table 7). To briefly explain the method of
calculating each input coefficient, each cell for input coefficient is arrived at by dividing
the input value of each industry by total gross outlay. For instance, assuming that, from
Table 6, the input value of industry i = 2 for industryj = 1 is US$10 (= X21) and total gross
outlay for industry j = 1 is US$100 (= X1), the input coefficient (a21) for industry j = 1 is 0.1
(10/100 = X21/X1). This input coefficient signifies the amount of input of industry i for a
production per unit of industry j. In the same way, each value-added coefficient for each industry
is found by dividing each value-added by total gross outlay of each industry. If the value of valueadded for industryj = 1 is US$40 (= V1) and total gross outlay for industryj = 1 is US$100 (= X1),
the value-added coefficient (av1) for industryj = 1 is 0.4 (40/100 = V1/X1).
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Texas Tech University, Hyojin Kim, August 2012
Table 7. Matrix Structure of Input Coefficient and Value-Added Coefficient
a11(=X11/X1)
a12(=X12/X2)
.....
a1n(=X1n/Xn)
a21(=X21/X1)
a22(=X22/X2)
.....
a2n(=X2n/Xn)
:
:
aij(=Xij/Xj)
:
an1(=Xn1/X1)
an2(=Xn2/X2)
.....
ann(=Xnn/Xn)
Value-Added
Coefficient
av1(=V1/X1)
av2(=V2/X2)
.....
avn(=Vn/Xn)
Total
1
1
.....
1
Input Coefficient
In Table 6, multiple simultaneous equations of total gross output for each industry
sector from industryj = 1 to industryj = n are set up as follows:
X1= X11+X12+ ......+X1n +F1 - M1
X2= X21+X22+ ......+X2n +F2 - M2
:
:
Xn= Xn1+Xn2+ ...... +Xnn+Fn - Mn
Equation (1)
To schematize a distribution ratio of the amount of input of each industry for
industryj from industryj = 1 to industryj = n, the following equations are formulated along
with Table 7, representing input coefficients of each industry and equation (1) driven by
Table 6.
X1= a11X1+a12X2+ ......+a1nXn +F1 - M1
X2= a21X1+a22X2+ ......+a2nXn +F2 - M2
:
:
Xn= an1X1+an2X2+ ......+annXn +Fn - Mn
Equation (2)
To simplify equation (2), when the input coefficients from each industry are
grouped into the same section, equation (2) is presented as the following equation.
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Texas Tech University, Hyojin Kim, August 2012
=
+
-
Equation (3)
To represent a more simplified equation (3), equation (3) is formulated as the
following mathematical input-output model:
X=A×X+F–M
Equation (4)
where X is vector of total gross output from industryj = 1 to industryj = n; A is input
coefficient matrix from industryj = 1 to industryj = n; F is vector of final demand from
industryj = 1 to industryj = n; M is vector of import from industryj = 1 to industryj = n. To
extract the inverse matrix or the Leontief inverse, which is a multiplier explaining direct,
indirect, and induced effects, all elements from equation (4) are transposed to X as the
following equation (6) going through equation (5):
(1 – A)X = F – M
X=
where
(F – M)
Equation (5)
Equation (6)
is the inverse matrix.
Fourth, the computerized software from the MIG, Inc. time-efficiently helps to
produce the inverse matrices, which is a set of multipliers. Analyses of four different sets
of multipliers from the input-output system, namely, total industry output, labor income,
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Texas Tech University, Hyojin Kim, August 2012
value added, and employment, are conducted under given mathematical input-output
model (see equation (6)). Each set of multipliers creates four types of multipliers. These
four types are the so-called, Type 1, Type 2, Type 3, and Type SAM (Social Accounting
Matrix) multiplier within the IMPLAN system. A Type 1 multiplier denotes the direct
effect plus the indirect effect. A Type SAM multiplier denotes Type 1 plus induced effect,
and explains social security and income tax leakage, institution savings, commuting, and
inter-institutional transfers. Basically, each set of multipliers is created through the same
process as in Leontief’s (1953; 1986; 2004) and Archer’s (1977; 1974) distinguished
masterpieces. In fact, a Type 1 and Type SAM multiplier express an open and closed
model of the input-output analysis, respectively. Depending on inclusive of households in
the input-output economic system, a closed or open model in the input-output analysis is
determined. When containing households sector in the input-output analysis, it is called a
closed model (a Type SAM multiplier). On the other hand, it is referred to an open model
(a Type 1 multiplier), when exclusive of household sectors in the input-output table.
Because multipliers driven by a closed model, namely Type SAM multipliers, provide
not only direct and indirect effects, but also induced effect by household sectors, they are
generally larger than multipliers resulted from an open model. For this study, apart from
Type 2 and 3 multipliers, only Type 1 and SAM multipliers are presented to understand
the direct effect, indirect and induced effects for the hotel industry and other industries in
Texas.
Finally, the resulting sets of multipliers are interpreted. Each set of multipliers
indicates how much a one-dollar change in final demand for a particular given industry
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Texas Tech University, Hyojin Kim, August 2012
leads to the resulting change of output for every regional industry, as the format of output,
income, value-added, and employment multipliers. Suppose a Type 1 multiplier, which is
the aggregated direct and indirect effects divided by the direct effect, for the hotel and
motel sector is 1.20. For each dollar of output generated by the hotel and motel sector,
0.20 dollars worth of indirect output is generated in other regional industries. If a Type
SAM multiplier, which is the aggregated direct, indirect, and induced effects divided by
the direct effect, for hotel and motel industry is 1.30, .30 dollars of indirect and induced
output is generated in other regional industries. The induced output would be .10 (=1.30–
1.20) dollars for each dollar of output produced by the hotel and motel industry sector.
Data Collection
By categorizing the hotel industry as a distinct industry, this study analyzed its
economic impacts using secondary data, the research The Economic Impact of Travel on
Texas, and the IMPLAN 2009 database, provided by the Dean Runyan Associates and the
MIG, Inc. The reason why the IMPLAN 2009 data was selected was because the data that
the MIG, Inc. provided was the latest data available when the data was collected. Initially,
although this study was designed to analyze and compare the economic impact of the
hotel industry for seven tourism regions in Texas (Panhandle Plains, Big Bend Country,
Hill Country, Prairies and Lakes, Piney Woods, South Texas, and Gulf Coast) based on
Dean Runyan Associates’ research (2010), the focus of this research was on the overall
economic impact of the hotel industry in the State of Texas because of the difficulty in
data collection and time limit.
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Texas Tech University, Hyojin Kim, August 2012
CHAPTER IV
RESULTS
To determine the overall size of the economy of Texas, an industry overview and
gross regional product (GRP) were presented in Table 7 and 8. The levels of employment,
labor income, output, and value added in both the hotel industry and the top ten industries
were provided to identify at what level the hotel industry was positioned compared with
the top ten industries. Also, in order to answer to what degree the hotel industry
contributed to the economy of the State of Texas, four different sets of multipliers were
created: output, labor income, employment, and value added. During the last part of
obtaining these results, aggregated input-output tables and multipliers were produced to
determine the economic inter-relationship between the hotel industries (hotels and motels
including the casino hotels industry, plus the other accommodations industry) and the
non-hotel industries, using the criteria of the NAICS (North American Industry
Classification System) and the ISIC (International Standard Industrial Classification).
There are no casino hotels in Texas, but the industrial sector of “the hotels and motels
including the casino hotels” was maintained as one industrial classification because of
future comparisons of casino hotels located in other states, such as Oklahoma or
Michigan.
The results of this chapter are composed of four sections: 1) an overview of Texas;
2) quantified levels of employment, labor income, output, and value added of the top ten
industries together with the hotel industry; 3) analyses of the above-mentioned four
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Texas Tech University, Hyojin Kim, August 2012
different sets of multipliers; and 4) the economic structure of relations between the hotel
industries and other industries, based on the criteria of the NAICS and the ISIC.
An Overview of Texas
Before beginning the discussion on the specific economic impacts of the hotel
industry in Texas, Table 8 and 9 are given below to identify the overall information and
gross regional product associated with the economy of Texas. The gross regional product
of Texas is about $1.2 trillion, while the state totals about $0.9 trillion in personal income,
with total employment of about 13 million people. The number of industries consists of
431 sectors. Even though the State of Texas initially has 440 industrial sectors listed in
the input-output account table, nine industrial sectors (1 - tobacco farming, 2 - mining
copper, nickel, lead and zinc, 3 - beet sugar manufacturing, 4 - household laundry
equipment manufacturing, 5 - federal electronic utilities, 6 - used and secondhand goods,
7 - scrap, 8 - rest of the world adjustment, and 9 - non-comparable foreign imports) are
excluded because of no transactions between industries. Average household income in
Texas is recorded as $103,063, and this figure represents more than two times the median
household income in the United States, at $50,221 (“Household Income for States,”
2012).
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Texas Tech University, Hyojin Kim, August 2012
Table 8. Overall Information in Texas
Year
Gross Regional Product
Total Personal Income
Total Employment
Number of Industries
Land Area (Sq. Miles)
Population
Total Households
Average Household Income
2009
$1,224,308,151,851
$904,166,400,000
13,880,602
431
261,914
24,782,300
8,772,994
$103,063
Source: MIG (2009)
As shown in Table 9, out of a total final demand of about $1.22 trillion, the total
amount of households’ income in Texas was about $0.77 trillion; the total amount of
capital was roughly $0.20 trillion; the total amount of exports was approximately $0.78
trillion; and the total amount of imports was about $0.67 trillion.
Table 9. Gross Regional Product in Texas
Value Added
Employee Compensation
Proprietor Income
Other Property Type Income
Indirect Business Taxes
Total Value Added
Amount
$601,692,708,492
$111,799,842,365
$416,379,402,791
$94,436,198,203
$1,224,308,151,851
Final Demand
Households
State/Local Government
Federal Government
Capital
Exports
Imports
Institutional Sales
Amount
$769,030,332,546
$109,787,662,725
$93,935,487,930
$201,417,034,173
$779,491,408,414
($670,155,279,648)
($59,198,482,939)
Total Final Demand
$1,224,308,163,201
Source: MIG (2009)
Employment, Labor Income, and Output of the Top Ten Industries and the Hotel Industry
in Texas
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Texas Tech University, Hyojin Kim, August 2012
Table 10 shows that the top three industries for employment were 1) food services
and drinking places; 2) employment and payroll only (state & local government,
education); and 3) employment and payroll only (state & local government, noneducation); the three totals are 876,895, 860,314, and 647,969, respectively. Out of total
employment of 13,880,602 persons in Texas, employment engaged in the hotel (for
convenience, the hotels and motels sector, including casino hotels, is referred to as the
hotel industry hereafter) and other accommodations industries accounted for 0.56% (=
77,237/13,880,602). Given that the average number of employees per industry sector in
Texas is 32,206, the number employed by the hotel and other accommodations industries
is more than double that figure.
Table 10. Top 10 Industries for Employment Compared with the Hotel Industry
Rank
1
2
3
4
5
6
7
8
9
10
Description
Food services and drinking places
Employment and payroll only (state & local govt, education)
Employment and payroll only (state & local govt, non-education)
Wholesale trade businesses
Real estate establishments
Construction of other new nonresidential structures
Offices of physicians, dentists, and other health practitioners
Employment services
Private hospitals
Retail Stores - General merchandise
Hotels and motels, including casino hotels
Other accommodations
Average Employment per Industrial Sector
Employment
876,895
860,314
647,969
522,512
514,065
344,625
323,698
294,143
279,138
260,473
68,241
8,996
32,206
Source: MIG (2009)
With regard to the amount of labor income, as seen in Table 11, the first three
rankings were determined as follows: 1) employment and payroll only (state & local
government, education); 2) wholesale trade business; and 3) extraction of oil and natural
37
Texas Tech University, Hyojin Kim, August 2012
gas. These three industries created labor incomes of approximately $45 billion, $42
billion, and $32 billion, respectively. The hotel and other accommodations industries
produced about $2.2 billion and $0.3 billion. They accounted for 0. 36%
(=$2,535,097,872/$713,492,550,857) of the total labor income in Texas. Compared to the
average labor income in Texas, the dollar amount for the hotel and other accommodations
industries is relatively a high-level figure.
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Texas Tech University, Hyojin Kim, August 2012
Table 11. Top 10 Industries for Labor Income Compared with the Hotel Industry
Rank
1
2
3
4
5
6
7
8
9
10
Description
Employment and payroll only (state & local govt, education)
Wholesale trade businesses
Extraction of oil and natural gas
Employment and payroll only (state & local govt, non-education)
Offices of physicians, dentists, and other health practitioners
Private hospitals
Employment and payroll only (federal govt, military)
Food services and drinking places
Architectural, engineering, and related services
Construction of other new nonresidential structures
Hotels and motels, including casino hotels
Other accommodations
Average Labor Income per Industrial Sector
Labor Income
$45,013,117,188
$42,030,083,008
$32,678,536,133
$32,058,855,469
$26,138,088,379
$19,470,150,391
$18,425,318,359
$18,035,916,870
$16,882,470,703
$16,338,942,383
$2,231,296,829
$303,801,043
$1,655,435,153
Source: MIG (2009)
As to output representing the value of industrial production, petroleum refineries,
extraction of oil and natural gas, and wholesale trade businesses were ranked as the first
three in Table 12. Whereas the three industries generated about $215 billion, $123 billion,
and $110 billion respectively in output, the output amounts of the hotel and other
accommodations industries were about $7 billion and $0.7 billion, respectively. These
figures represented 0.34% (=$8,008,100,525/$2,358,272,297,620) of the total of output
of Texas. Although the amount of output in the hotel and other accommodations
industries was considerably lower by comparison with the top ten-ranked industries, it
represented more than the average output per industrial sector.
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Texas Tech University, Hyojin Kim, August 2012
Table 12. Top 10 Industries for Output Compared with the Hotel Industry
Rank
1
2
3
4
5
6
7
8
9
10
Description
Petroleum refineries
Extraction of oil and natural gas
Wholesale trade businesses
Imputed rental activity for owner-occupied dwellings
Petrochemical manufacturing
Real estate establishments
Employment and payroll only (state & local govt, education)
Food services and drinking places
Telecommunications
Offices of physicians, dentists, and other health practitioners
Output
$215,950,531,250
$123,711,273,438
$110,025,687,500
$91,277,250,000
$89,609,554,688
$86,942,921,875
$51,135,550,781
$49,813,843,750
$44,499,062,500
$43,215,777,344
Hotels and motels, including casino hotels
Other accommodations
Average Output per Industrial Sector
$7,232,304,199
$775,796,326
$5,471,629,461
Source: MIG (2009)
Table 13 revealed the top ten-ranked industries for value added together with the
hotel and other accommodations industries. The top three industries—extraction of oil
and natural gas, wholesale trade businesses, and real estate establishments—showed
value added figures of about $75 billion, $72 billion, and $65 billion, respectively.
Meanwhile, the hotel and other accommodations industries yielded approximately $4
billion and $0.4 billion respectively for value added. Out of the total value added in
Texas, the hotel and other accommodations industries accounted for 0.36%
(=$4,393,304,555/$1,224,308,151,851) and resulted in more than the average value
added per industrial sector in Texas.
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Texas Tech University, Hyojin Kim, August 2012
Table 13. Top 10 Industries for Value Added Compared with the Hotel Industry
Rank
1
2
3
4
5
6
7
8
9
10
Description
Extraction of oil and natural gas
Wholesale trade businesses
Real estate establishments
Imputed rental activity for owner-occupied dwellings
Employment and payroll only (state & local govt, education)
Petroleum refineries
Employment and payroll only (state & local govt, non-education)
Offices of physicians, dentists, and other health practitioners
Employment and payroll only (federal govt, military)
Food services and drinking places
Hotels and motels, including casino hotels
Other accommodations
Average Value-Added per Industrial Sector
Value-Added
$75,187,872,070
$72,567,088,867
$65,371,302,002
$61,461,397,461
$51,135,544,922
$48,962,227,051
$36,419,318,848
$27,881,871,552
$26,621,236,328
$25,828,815,308
$3,986,083,633
$407,220,922
$2,840,622,162
Source: MIG (2009)
Analyses of Four Different Sets of Multipliers
To recognize how much the hotel and other accommodations industries have
contributed to the economy of Texas, four different sets of multipliers including output,
labor income, value added, and employment were adduced together with direct, indirect,
and induced effects. Brief definitions of direct, indirect, and induced effects are as
follows. A direct effect implies the set of direct expenditures applied to input-output
multipliers for impact analysis; an indirect effect implies the impact of local industries
buying goods and services from other local industries; and an induced effect implies the
response by an economy to direct an effect that occurs through re-spending of income
received by a component of value added. In general, a direct effect indicates a primary
effect, while an indirect effect together with an induced effect indicates a secondary
effect.
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Texas Tech University, Hyojin Kim, August 2012
Also, the hotel and other accommodations industries are compared with the top
ten-ranked industries to estimate the relative importance and contribution of the hotel
industry to the State of Texas, according to Type 1 and SAM (Social Accounting Matrix)
multipliers. For an overall industrial comparison with the hotel and other
accommodations industries in Texas, four tables of multipliers representing 440
industries with output, labor income, value added, and employment are attached as
appendices.
Type 1 Multiplier for Output
Table 14 showed Type 1 multipliers for output with the top ten-ranked industries
and the two hotel industries (1 - hotels and motels including casino hotels and 2 - other
accommodations). As previously stated, Type 1 multipliers represent direct and indirect
effects without an induced effect because they imply an open model exclusive of
household sectors in the input-output analysis. A Type 1 multiplier for output signifies
direct and indirect effects that each industrial sector generates goods and services, for one
unit of final demand given by an initial spender. For this study, the standard unit in the
input-output table is $1 million. It also shows that the higher is the value of a Type 1
multiplier for output, the stronger is the relationship of a particular industrial sector to
other industrial sectors. By contrast, lower values of Type 1 multipliers for output result
in fewer interrelationships.
As shown in Table 14, the average of Type 1 multipliers for output is 1.515,
indicating that for $1 million of final demand on average in Texas, the direct and indirect
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Texas Tech University, Hyojin Kim, August 2012
effects add up to about $1.52 million. Meanwhile, Type 1 multipliers for the top threeranked industries—state and local government passenger transit, other federal
government enterprises, and animal (except poultry) slaughtering, rendering, and
processing—were 3.656, 2.501, and 2.105, respectively. By contrast, the figures for the
hotel and other accommodations industries were 1.506 and 1.536, respectively. Generally
speaking, a high value of Type 1 multiplier for output denotes a relatively powerful
capital-intensity and a strong dependence on other industries. Since the Type 1
multipliers for the hotel and other accommodations industries proved to be below or
about the same as the average Type 1 multiplier for output, this shows that the hotel
industries in Texas have low capital-intensity and a weak dependence on other industries.
Additionally, the Type 1 output multipliers of the hotel and other
accommodations industries yield two facts, as follows: 1) the Type 1 multiplier of the
hotel industry indicates that for each $1 million of output created by the hotel industrial
sector, $0.506 million worth of indirect output are produced in other local industries; and
2) the Type 1 multiplier of the other accommodations industry presents that for $1
million of output created by the other accommodations industrial sector, $0.536 million
worth of indirect output are created in other local industries.
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Texas Tech University, Hyojin Kim, August 2012
Table 14. Type 1 Multiplier for Output
with Top Ten-Ranked Industries and the Hotel Industry
Ranking
Industry
Code
1
430
2
429
3
59
4
120
5
55
6
129
7
144
8
124
9
127
10
423
158
412
204
411
Description
State and local
government passenger
transit
Other Federal
Government enterprises
Animal (except poultry)
slaughtering, rendering,
and processing
Petrochemical
manufacturing
Fluid milk and butter
manufacturing
Artificial and synthetic
fibers and filaments
manufacturing
Plastics pipe and pipe
fitting manufacturing
Carbon black
manufacturing
Plastics material and
resin manufacturing
Religious organizations
Other
accommodations
Hotels and motels,
including casino hotels
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
1
2.656
1.852
5.508
3.656
1
1.501
0.843
3.344
2.501
1
1.105
0.313
2.418
2.105
1
1.097
0.202
2.300
2.097
1
1.070
0.311
2.381
2.070
1
1.038
0.331
2.369
2.038
1
1.015
0.293
2.308
2.015
1
1.012
0.283
2.295
2.012
1
1.005
0.279
2.284
2.005
1
0.988
0.524
2.512
1.988
1
0.536
0.601
2.137
1.536
1
0.506
0.500
2.006
1.506
Type 1 Multiplier Average for Output
Source: MIG (2009)
Note: Type I Multiplier = (Direct Effect + Indirect Effect) / (Direct Effect)
44
1.515
Texas Tech University, Hyojin Kim, August 2012
Type SAM Multiplier for Output
Unlike a Type 1 multiplier, a Type SAM multiplier representing a closed model
contains household sectors for the input-output analysis and considers them as
independent sectors. In a Type SAM multiplier, it is possible to detect not only direct and
indirect effects, but also an induced effect; this is because for every one unit of final
demand initiated by a first consumer, the labor income generated by household sectors is
re-spent in other industrial sectors and indirectly results in another income. A Type SAM
multiplier is more likely to be practical and realistic than a Type 1 multiplier in that it
reflects household sectors in the input-output system. However, a household income in
the input-output table might be overestimated because of an assumption that a full
household income is expended without savings. Therefore, a discreet interpretation of a
Type SAM multiplier must be carried out with care when a Type SAM multiplier is
analyzed.
In Table 15, the Type SAM average multiplier for output shows 1.956; this
represents that for $1 million of final demand on average in Texas, direct, indirect, and
induced effects worth about $1.96 million occur. Compared to the average of the Type 1
multiplier for output (1.515), the Type SAM multiplier on average increased as much as
0.441. This incremental value was generated by the induced effect. The Type SAM
multipliers of the top three-ranked industries and the hotel industry were 5.508, 3.344,
2.512, and 2.006, respectively. Further, the Type SAM multiplier of the other
accommodation industry was 2.137.
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Texas Tech University, Hyojin Kim, August 2012
Due to the induced effect, each of the output multipliers of the hotel and the other
accommodations industries augmented as much as 0.500 and 0.601, respectively. In other
words, when the Type SAM multiplier of the hotel industry is 2.006, $1.006 million of
indirect and induced output are generated in other local industries. The induced output is
$0.500 (=$2.006 – $1.506) million for each $1 million of output generated by the hotel
industry sector. Likewise, $1.137 million of indirect and induced output are created in
other local industries when the Type SAM multiplier of the other accommodations
industry is 2.137. Finally, for each $1 million of output produced by the other
accommodations industry, the induced output is $0.601 (=$2.137 – $1.536) million.
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Texas Tech University, Hyojin Kim, August 2012
Table 15. Type SAM Multiplier for Output
with Top Ten-Ranked Industries and the Hotel Industry
Ranking
Industry
Code
1
430
2
429
3
423
4
372
5
59
6
432
7
55
8
348
9
129
10
95
78
412
155
411
Description
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type
SAM
Multiplier
1
2.656
1.852
5.508
5.508
1
1.501
0.843
3.344
3.344
1
0.988
0.524
2.512
2.512
1
0.288
1.217
2.505
2.505
1
1.105
0.313
2.418
2.418
1
0.858
0.530
2.388
2.388
1
1.070
0.311
2.381
2.381
1
0.512
0.858
2.370
2.370
1
1.038
0.331
2.369
2.369
1
0.869
0.493
2.362
2.362
1
0.536
0.601
2.137
2.137
1
0.506
0.500
2.006
2.006
State and local
government passenger
transit
Other Federal
Government enterprises
Religious organizations
Computer systems
design services
Animal (except poultry)
slaughtering, rendering,
and processing
Other state and local
government enterprises
Fluid milk and butter
manufacturing
Radio and television
broadcasting
Artificial and synthetic
fibers and filaments
manufacturing
Sawmills and wood
preservation
Other
accommodations
Hotels and motels,
including casino hotels
Type SAM Multiplier Average for Output
1.956
Source: MIG (2009)
Note: Type SAM Multiplier= (Direct Effect + Indirect Effect + Induced Effect) / (Direct
Effect)
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Texas Tech University, Hyojin Kim, August 2012
Type 1 and SAM Multipliers for Labor Income
Commonly, in a particular country, the more self-reliant is the national economy,
the greater is the labor income from the hotel and tourism industries. This is because
those industries are available to internally cover goods and services and raise funds
without foreign loans. A labor income multiplier indicates how much the level of labor
income increases for every unit of final demand that occurs due to a certain industry.
In Table 16, the average of the Type 1 multiplier for labor income is recorded as
1.893 in Texas. This means that, for every $1 million of final demand on average, direct
and indirect effects worth about $1.90 million in labor income occur.
Because the rankings of the top ten-ranked industries and the hotel industries for
Type 1 and Type SAM multipliers of labor income are the same, it is unnecessary to
produce two distinct tables indicating the rankings of Type 1 and Type SAM multipliers
for labor income. Therefore, Table 16 shows both Type 1 and Type SAM multipliers of
the top ten-ranked industries and the hotel industries simultaneously. The top threeranked industries for Type 1 and Type SAM multipliers for labor income were soybean
and other oilseed processing, wet corn milling, and chocolate and confectionery
manufacturing from cacao beans. The Type 1 multipliers of these three industries and the
hotel and other accommodations industries were 13.424, 8.125, 7.326, 1.561, and 1.477,
correspondingly. Both Type 1 multipliers of the hotel and other accommodations
industries turned out to be lower than the average multiplier for labor income in Texas.
On the other hand, the average of the Type SAM multiplier for labor income
exhibits incremental value of as much as 0.629 (= 2.522 – 1.893). The Type SAM
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Texas Tech University, Hyojin Kim, August 2012
multipliers of the top three-ranked industries and the hotel and other accommodations
industries are 17.890, 10.828, 9.763, 2.081, and 1.968, respectively. Given the fact that
both the Type SAM multipliers of the hotel and other accommodations industries are less
than the average multiplier (2.522) for labor income, these industrial sectors contribute
trivially to the economy of Texas, compared to manufacturing industries.
The Type 1 multipliers for the hotel and other accommodations industrial sectors
are 1.561 and 1.477, while their Type SAM multipliers are 2.801 and 1.968. For each $1
million of direct labor income generated by the hotel industry alone, $0.561 million of
indirect labor income and $1.24 (= $2.801 – $1.561) million of induced labor income are
generated. In other words, for each $1 million of income generated by the hotel industrial
sector alone, a $0.561 million value of indirect income is generated in other local
industries. Also, from the Type SAM multiplier of the hotel industry, the induced labor
income would be $1.24 million for each $1 million of income created by the hotel
industry. The same interpretation applies to the other accommodations industry.
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Texas Tech University, Hyojin Kim, August 2012
Table 16. Type 1 and SAM Multipliers for Labor Income
with Top Ten-Ranked Industries and the Hotel Industry
Ranking
Industry
Code
1
45
2
44
3
50
4
120
5
41
6
43
7
366
8
115
9
175
10
130
250
411
292
412
Description
Soybean and other
oilseed processing
Wet corn milling
Chocolate and
confectionery
manufacturing
from cacao beans
Petrochemical
manufacturing
Dog and cat food
manufacturing
Flour milling and
malt
manufacturing
Lessors of
nonfinancial
intangible assets
Petroleum
refineries
Primary smelting
and refining of
copper
Fertilizer
manufacturing
Hotels and
motels, including
casino hotels
Other
accommodations
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type
SAM
Multiplier
0.012
0.146
0.053
0.211
13.424
17.890
0.030
0.216
0.082
0.329
8.125
10.828
0.030
0.187
0.072
0.289
7.326
9.763
0.028
0.167
0.065
0.260
6.981
9.302
0.032
0.158
0.063
0.253
5.944
7.922
0.051
0.239
0.097
0.387
5.734
7.642
0.019
0.090
0.036
0.146
5.644
7.522
0.039
0.168
0.069
0.276
5.263
7.011
0.019
0.079
0.033
0.131
5.145
6.857
0.049
0.192
0.080
0.321
4.927
6.566
0.309
0.173
0.160
0.642
1.561
2.081
0.392
0.187
0.192
0.771
1.477
1.968
1.893
2.522
Type 1 and SAM Multiplier Averages for Labor Income
Source: MIG (2009)
Note: The Direct, Indirect, Induced and Total Effects are Per Million Dollars of Output
Type I Multiplier = (Direct Effect + Indirect Effect) / (Direct Effect)
Type SAM Multiplier= (Direct Effect + Indirect Effect + Induced Effect) / (Direct
Effect)
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Texas Tech University, Hyojin Kim, August 2012
Type 1 Multiplier for Value Added
A value-added multiplier expresses how much one unit change of final demand
contributes to the increment of value added for every regional industrial sector. In Table
17, the Type 1 value-added multiplier on average in Texas is shown to be about 1.85.
This accounts for the fact that an industry on average generates value-added worth of
about $1.85 million, for each $1 million of final demand by that industry.
Table 17 presents the Type 1 multipliers for the top ten-ranked industries and the
hotel industries. The Type 1 multipliers for the top three-ranked industries—soybean and
other oilseed processing, chocolate and confectionery manufacturing from cacao beans,
and wet corn milling—were 9.940, 8.515, 7.144, respectively, whereas the corresponding
Type 1 multipliers for the hotel and other accommodations industries were 1.520 and
1.608. Both the hotel and the other accommodations industries show Type 1 multipliers
that are less than the average multiplier in Texas. The Type 1 multiplier of the hotel
industry shows that for each $1 million of value added created by the hotel industrial
sector alone, $0.520 million worth of indirect value added is generated in other local
industries. As well, the other accommodation industry indirectly creates value added of as
much as $0.608 million for each $1 million of value added produced by the other
accommodations industry alone.
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Texas Tech University, Hyojin Kim, August 2012
Table 17. Type 1 Multiplier for Value Added
with Top Ten-Ranked Industries and the Hotel Industry
Ranking
Industry
Code
1
45
2
50
3
4
44
56
5
43
6
130
7
59
8
173
9
55
10
57
235
412
284
411
Description
Soybean and other oilseed
processing
Chocolate and
confectionery
manufacturing from cacao
beans
Wet corn milling
Cheese manufacturing
Flour milling and malt
manufacturing
Fertilizer manufacturing
Animal (except poultry)
slaughtering, rendering,
and processing
Secondary smelting and
alloying of aluminum
Fluid milk and butter
manufacturing
Dry, condensed, and
evaporated dairy product
manufacturing
Other accommodations
Hotels and motels,
including casino hotels
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
0.028
0.253
0.097
0.378
9.940
0.041
0.311
0.133
0.485
8.515
0.063
0.078
0.390
0.362
0.151
0.152
0.605
0.593
7.144
5.617
0.100
0.425
0.178
0.703
5.249
0.092
0.361
0.148
0.600
4.938
0.106
0.388
0.185
0.679
4.656
0.089
0.301
0.139
0.529
4.381
0.134
0.411
0.183
0.728
4.066
0.129
0.381
0.166
0.676
3.952
0.525
0.319
0.355
1.199
1.608
0.551
0.286
0.295
1.133
1.520
Type 1 Multiplier Average for Value Added
1.849
Source: MIG (2009)
Note: The Direct, Indirect, Induced and Total Effects are Per Million Dollars of Output
Type I Multiplier = (Direct Effect + Indirect Effect) / (Direct Effect)
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Texas Tech University, Hyojin Kim, August 2012
Type SAM Multiplier for Value Added
The only difference between a Type 1 multiplier and a Type SAM multiplier for
value added is whether or not an induced effect is added to a multiplier. Therefore, a
Type SAM value-added multiplier describes direct, indirect, plus induced effects of the
value added that results from a one-unit change in final demand for a given industry.
Subtracting the average of the Type 1 value-added multiplier from the average of the
Type SAM value-added multiplier, the result is 0.695 (= 2.544 – 1.849), accounting for
an induced effect. That is, on average in Texas, the induced value added is about $0.7
million for each $1 million of value added generated by a given industry.
Table 18 presents a Type SAM multiplier for value added. The top three rankings
of a Type SAM multiplier are equivalent to the top three rankings of a Type 1 multiplier.
The top three-ranked Type SAM multipliers are 13.374 in soybean and other oilseed
processing, followed by 11.730 in chocolate and confectionery manufacturing from cacao
beans, and 9.526 in wet corn milling. The Type SAM multipliers of the hotel and other
accommodations industrial fields were recorded at 2.056 and 2.284, respectively. When
the Type 1 multiplier is subtracted from the Type SAM multiplier of the hotel industry,
the induced value added is 0.536 (= 2.056 – 1.520). Therefore, $1.056 million of indirect
and induced value added are formed in other local industries. The induced value added is
$0.536 million for each $1 million of value added produced by the hotel industry. In the
same manner, for the other accommodations industry, it is shown that the induced value
added is $0.676 (= $2.284 – $1.608) million for each $1 million of value added created
by the other accommodations industry alone.
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Texas Tech University, Hyojin Kim, August 2012
Table 18. Type SAM Multiplier for Value Added
with Top Ten-Ranked Industries and the Hotel Industry
Ranking
Industry
Code
1
45
2
50
3
44
4
56
5
43
6
130
7
59
8
173
9
423
10
55
225
412
307
411
Description
Soybean and
other oilseed
processing
Chocolate and
confectionery
manufacturing
from cacao beans
Wet corn milling
Cheese
manufacturing
Flour milling and
malt
manufacturing
Fertilizer
manufacturing
Animal (except
poultry)
slaughtering,
rendering, and
processing
Secondary
smelting and
alloying of
aluminum
Religious
organizations
Fluid milk and
butter
manufacturing
Other
accommodations
Hotels and
motels,
including casino
hotels
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type
SAM
Multiplier
0.028
0.253
0.097
0.378
13.374
0.041
0.311
0.133
0.485
11.730
0.063
0.390
0.151
0.605
9.526
0.078
0.362
0.152
0.593
7.558
0.100
0.425
0.178
0.703
7.027
0.092
0.361
0.148
0.600
6.551
0.106
0.388
0.185
0.679
6.400
0.089
0.301
0.139
0.529
5.943
0.199
0.582
0.310
1.090
5.488
0.134
0.411
0.183
0.728
5.434
0.525
0.319
0.355
1.199
2.284
0.551
0.286
0.295
1.133
2.056
Type SAM Multiplier Average for Value Added
2.544
Source: MIG (2009)
Note: The Direct, Indirect, Induced and Total Effects are Per Million Dollars of Output
Type SAM Multiplier= (Direct Effect + Indirect Effect + Induced Effect) / (Direct
Effect)
54
Texas Tech University, Hyojin Kim, August 2012
Type 1 Multiplier for Employment
An employment multiplier defines, for one unit of final demand that arises in a
particular industrial sector, how many employment opportunities are created by the final
demand. In Table 19, the average of the Type 1 employment multipliers is 2.094. This
figure means that, for every $1 million of final demand caused by a given industrial
sector, the industry creates 2.094 million jobs as direct and indirect effects.
Table 19 specifies the Type 1 multipliers for employment in the top ten-ranked
industries and the hotel industries in Texas. The top three-ranked industries were
petroleum refineries, petrochemical manufacturing, and soybean and other oilseed
processing. For the Type 1 multiplier, each of these three industries displays 21.413,
13.981, and 13.557, respectively. The Type 1 multipliers of the hotel and other
accommodations industries were 1.378 and 1.345, which means that for each million jobs
generated directly by the hotel and other accommodations industrial sectors, 0.378
million jobs and 0.345 million jobs are generated indirectly. Also, the Type 1
employment multipliers of the hotel and other accommodations industries imply that the
hotel industries generate employment at less than the average rate for industries in Texas.
55
Texas Tech University, Hyojin Kim, August 2012
Table 19. Type 1 Multiplier for Employment
with Top Ten-Ranked Industries and the Hotel Industry
1
Industry
Code
115
2
120
3
45
4
44
5
175
6
366
7
57
8
43
9
56
10
130
313
411
328
412
Ranking
Description
Petroleum refineries
Petrochemical
manufacturing
Soybean and other
oilseed processing
Wet corn milling
Primary smelting and
refining of copper
Lessors of nonfinancial
intangible assets
Dry, condensed, and
evaporated dairy
product manufacturing
Flour milling and malt
manufacturing
Cheese manufacturing
Fertilizer
manufacturing
Hotels and motels,
including casino
hotels
Other
accommodations
Direct
Effects
0.099
Indirect
Effects
2.020
Induced
Effects
1.687
3.806
Type I
Multiplier
21.413
0.179
2.325
1.587
4.091
13.981
0.218
2.736
1.288
4.242
13.557
0.512
4.871
2.006
7.389
10.514
0.206
1.336
0.800
2.341
7.484
0.292
1.858
0.892
3.042
7.371
0.874
5.231
2.206
8.311
6.982
0.843
4.966
2.360
8.170
6.889
1.045
5.599
2.020
8.664
6.359
0.599
3.187
1.960
5.746
6.318
9.436
3.571
3.919
16.925
1.378
11.596
4.005
4.705
20.305
1.345
Type 1 Multiplier Average for Employment
Total
2.094
Source: MIG (2009)
Note: The Direct, Indirect, Induced and Total Effects are Per Million Dollars of Output
Type I Multiplier = (Direct Effect + Indirect Effect) / (Direct Effect)
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Texas Tech University, Hyojin Kim, August 2012
Type SAM Multiplier for Employment
A Type SAM employment multiplier represents to what extent a one-unit change
leads to resulting changes in employment with direct, indirect, and induced effects for
every regional industry, given one unit of final demand by a certain industry. In
comparison with the average Type 1 employment multiplier, the average Type SAM
employment multiplier presents an incremental value of as much as 1.055 (= 3.149 –
2.094), which implies an induced effect.
In Table 20, the Type SAM multipliers for employment in the top ten-ranked
industries and the hotel industries are recognized. In terms of creating employment in
Texas, the top three-ranked industries with a Type SAM multiplier were the same as ones
of the top three-ranked industries with a Type 1 multiplier. The top three-ranked
industries and the hotel and other accommodations industries had 38.455, 22.842, 19.467,
1.794, and 1.751 respectively for the Type SAM multiplier. Therefore, from the Type 1
and SAM multipliers, the values of the induced employment would result in 0.416 (=
1.794 – 1.378) for the hotel industry and in 0.406 (= 1.751 – 1.345) for the other
accommodations industry. These figures demonstrate that the hotel industry delivers
induced employment of 0.416 million jobs for each million jobs it creates. Plus, 0.794
million jobs due to indirect and induced employment are produced in other local
industries. In the same manner, the induced employment is 0.406 million jobs for each
million job created by the other accommodations industry. Indirect plus induced
employment generated by other local industries represents 0.751 million jobs.
57
Texas Tech University, Hyojin Kim, August 2012
Table 20. Type SAM Multiplier for Employment
with Top Ten-Ranked Industries and the Hotel Industry
Ranking
Industry
Code
1
115
2
120
3
45
4
44
5
119
6
175
7
366
8
104
9
43
10
130
343
411
348
412
Description
Petroleum refineries
Petrochemical
manufacturing
Soybean and other
oilseed processing
Wet corn milling
All other petroleum
and coal products
manufacturing
Primary smelting and
refining of copper
Lessors of
nonfinancial
intangible assets
Pulp mills
Flour milling and
malt manufacturing
Fertilizer
manufacturing
Hotels and motels,
including casino
hotels
Other
accommodations
Direct
Effects
Indirect
Effects
Induced
Effects
Total
0.099
2.020
1.687
3.806
Type
SAM
Multiplier
38.455
0.179
2.325
1.587
4.091
22.842
0.218
2.736
1.288
4.242
19.467
0.512
4.871
2.006
7.389
14.433
0.313
1.319
1.974
3.606
11.511
0.206
1.336
0.800
2.341
11.367
0.292
1.858
0.892
3.042
10.428
0.644
2.399
3.532
6.574
10.214
0.843
4.966
2.360
8.170
9.687
0.599
3.187
1.960
5.746
9.589
9.436
3.571
3.919
16.925
1.794
11.596
4.005
4.705
20.305
1.751
Type SAM Multiplier Average for Employment
3.149
Source: MIG (2009)
Note: The Direct, Indirect, Induced and Total Effects are Per Million Dollars of Output
Type SAM Multiplier= (Direct Effect + Indirect Effect + Induced Effect) / (Direct
Effect)
58
Texas Tech University, Hyojin Kim, August 2012
Summary of Multipliers Related to the Hotel Industry Sectors
The following table sorts and summarizes two multipliers analyzed for the hotelrelated industries, i.e., the hotel and other accommodations industrial sectors. As for
output, both the Type 1 and Type SAM multipliers for the other accommodations
industry emerge as higher than those of the hotel industry. This indicates that the other
accommodations industrial sector generates more direct, indirect, and induced effects of
output than the hotel industry in Texas. Also, in terms of value-added multipliers of Type
1 and Type SAM, the other accommodations industry yields higher numbers than the
hotel industry.
On the other hand, given that both labor income and employment multipliers for
the hotel industry are higher than for the other accommodations industry, it is evident that
the hotel industry creates more direct, indirect, and induced effects than the other
accommodations industry, in terms of labor income and employment.
Table 21. Summary of Multipliers for the Hotel-Related Industries
Output
Industrial Sector
Labor Income
Value Added
Employment
Type 1
Type
SAM
Type 1
Type
SAM
Type 1
Type
SAM
Type 1
Type
SAM
Hotels and
motels,
including casino
hotels
1.506
2.006
1.561
2.081
1.520
2.056
1.378
1.794
Other
accommodations
1.536
2.137
1.477
1.968
1.608
2.284
1.345
1.751
Source: MIG (2009)
59
Texas Tech University, Hyojin Kim, August 2012
The Economic Structure of Relations between the Hotel Industry and Other Industries
To identify the economic impacts of the hotel industry, each of the two sectors
encompassed in the hotel and other accommodations industries has been compared with
the other 429 (= 431 – 2) industrial sectors in Texas with regard to the Type 1 and Type
SAM multipliers, implying an open and closed model in the input-output analysis.
However, it is still not clear how much the hotel-related industries have contributed to the
grouped other-related industries, such as the construction-related and manufacturingrelated industries. To answer this question, using the SAS (Statistical Analysis System)
9.2 IML (Interactive Matrix Language) software, the study made an attempt to aggregate
431 industries into 21 and 20 industrial sectors, based on ISIC and NAICS criteria. After
grouping, multipliers were found to explain the economic structure of relations between
the hotel-related industry group and other-related industry groups. By analyzing and
comparing multipliers, the ripple or spill-over effects influencing the Texas region are
understood, for every one unit of change in final demand by the hotel-related industry
group.
Input-Output Analysis Based on the ISIC
In Table 22, all multipliers present the Type SAM income multipliers
incorporating household sectors in the input-output system, i.e., a closed model. The
aggregated industrial sectors with the highest income multipliers are real estate activities
(0.947), followed by public administration and defense (0.941), followed by the
wholesale and retail trade (0.913), followed by administrative and support service
activities (0.912), followed by professional, scientific and technical activities (0.900).
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Texas Tech University, Hyojin Kim, August 2012
The hotel-related sector is recorded with an income multiplier of 0.844. This signifies
that, for each $1 million of income generated by the hotel-related sector alone, the hotelrelated industrial sector generates about $0.85 million as direct, indirect, and induced
effects.
Table 23 shows the Type SAM output multipliers from each aggregated
industrial sector, representing the amount of output required to produce a given level of
final demand. For output multipliers, Sector 1 (agriculture, forestry, and fishing = 1.742),
Sector 6 (manufacturing = 1.654), Sector 10 (financial and insurance activities = 1.588),
Sector 8 (transportation and storage = 1.563), and Sector 5 (construction = 1.549) are
ranked as the top five aggregated industrial sectors. The output multiplier of the hotelrelated sector is recorded at about 1.506. Although this figure is relatively lower than
each of the five grouped sectors, it indicates that, for each $1 million of output generated
by the hotel-related industry, the hotel-related industry creates about $1.506 million as
direct, indirect, and induced effects.
61
Texas Tech University, Hyojin Kim, August 2012
Table 22. Income Multiplier Based on the ISIC
Sector 1
Sector 2
Sector 3
Sector 4
Sector 5
Sector 6
Sector 7
Sector 8
Sector 9
Sector 10
Sector 11
Sector 12
Sector 13
Sector 14
Sector 15
Sector 16
Sector 17
Sector 18
Sector 19
Sector 20
Sector 21
Sector 1
0.359348
0.011619
0.014571
0.001342
0.002572
0.052978
0.043558
0.020511
0.005284
0.029704
0.056183
0.010849
0.017936
0.000719
0.000001
0.000511
0.001437
0.003630
0.000000
0.008542
0.000280
Sector 2
0.000320
0.609350
0.008196
0.000671
0.008635
0.018868
0.018055
0.008198
0.005702
0.013560
0.009531
0.033537
0.043843
0.000027
0.000003
0.000349
0.001252
0.002613
0.000000
0.002999
0.000096
Sector 3
0.000169
0.042554
0.607501
0.000729
0.008358
0.012111
0.010010
0.032804
0.008516
0.017851
0.009963
0.011642
0.031143
0.000195
0.000002
0.000545
0.006154
0.003663
0.000000
0.001926
0.000142
Sector 4
0.000213
0.003561
0.005259
0.601078
0.008612
0.014405
0.013230
0.013425
0.015898
0.034729
0.017613
0.031985
0.048270
0.000061
0.000005
0.001575
0.005671
0.011578
0.000000
0.007274
0.000396
Sector 5
0.000698
0.010174
0.005708
0.001206
0.463090
0.045034
0.059536
0.013083
0.013042
0.015356
0.013078
0.021812
0.066611
0.000080
0.000006
0.000677
0.002189
0.010434
0.000000
0.003079
0.000157
Sector 6
0.004032
0.049486
0.018152
0.001130
0.003094
0.317631
0.049045
0.017035
0.009297
0.011071
0.009278
0.017660
0.034850
0.000065
0.000003
0.000591
0.002333
0.005156
0.000000
0.005698
0.000134
Sector 7
0.000187
0.001778
0.004493
0.000867
0.001355
0.007142
0.760129
0.015312
0.015421
0.018929
0.023415
0.020026
0.029615
0.000325
0.000003
0.000800
0.002103
0.007508
0.000000
0.003232
0.000150
Sector 8
0.000511
0.011325
0.005768
0.001958
0.004872
0.039169
0.021346
0.549104
0.011930
0.030605
0.020616
0.036924
0.030167
0.000111
0.000003
0.000843
0.004265
0.012894
0.000000
0.005875
0.000148
Sector 9
0.000132
0.001902
0.003747
0.001428
0.003150
0.009089
0.010889
0.007622
0.636893
0.018292
0.023284
0.034345
0.053045
0.000180
0.000006
0.006493
0.003824
0.007658
0.000000
0.003256
0.000353
Sector 10
0.000069
0.000944
0.002481
0.000591
0.003103
0.004001
0.005220
0.004668
0.026192
0.699609
0.027937
0.023531
0.046758
0.000126
0.000005
0.001919
0.007531
0.010849
0.000000
0.004822
0.000493
Income Multiplier
0.641577
0.785806
0.805979
0.834837
0.74505
0.555743
0.912787
0.788437
0.825590
0.870849
Note: Sector 1 = Agriculture, forestry, and fishing, Sector 2 = Mining and quarrying, Sector 3 = Electricity, gas, steam and air
conditioning supply, Sector 4 = Water supply; sewerage, waste management and remediation activities, Sector 5 = Construction,
Sector 6 = Manufacturing, Sector 7 = Wholesale and retail trade; repair of motor vehicles and motorcycles, Sector 8 = Transportation
and storage, Sector 9 = Information and communication, Sector 10 = Financial and insurance activities, Sector 11 = Real estate
activities, Sector 12 = Administrative and support service activities, Sector 13 = Professional, scientific and technical activities, Sector
14 = Education, Sector 15 = Human health and social work activities, Sector 16 = Arts, entertainment, and recreation, Sector 17 =
Food service activities only (out of Accommodation and food service activities), Sector 18 = Other service activities, Sector 19 =
Activities of households as employers; undifferentiated goods-and services-producing activities of households for own use, Sector 20
= Public administration and defense; compulsory social security, and Sector 21 = Hotel-related industry.
62
Texas Tech University, Hyojin Kim, August 2012
Table 22. Income Multiplier Based on the ISIC (Continued)
Sector 1
Sector 2
Sector 3
Sector 4
Sector 5
Sector 6
Sector 7
Sector 8
Sector 9
Sector 10
Sector 11
Sector 12
Sector 13
Sector 14
Sector 15
Sector 16
Sector 17
Sector 18
Sector 19
Sector 20
Sector 21
Sector 11
0.000102
0.001361
0.012068
0.009729
0.006084
0.002657
0.003100
0.002487
0.007653
0.034563
0.809233
0.020067
0.022711
0.000023
0.000002
0.000677
0.002879
0.002785
0.000000
0.008233
0.000342
Sector 12
0.000192
0.002081
0.003154
0.001013
0.010953
0.008199
0.012487
0.005374
0.014084
0.073596
0.038257
0.690705
0.032623
0.000100
0.000006
0.001141
0.003731
0.010298
0.000000
0.003220
0.000318
Sector 13
0.000124
0.001375
0.003714
0.000906
0.001934
0.005702
0.006891
0.006728
0.027770
0.025218
0.033364
0.031994
0.733566
0.000067
0.000057
0.002175
0.007103
0.007306
0.000000
0.003354
0.000394
Sector 14
0.000191
0.002842
0.018171
0.003803
0.002232
0.009224
0.012123
0.007003
0.024203
0.018004
0.075496
0.023509
0.030109
0.612365
0.000003
0.001171
0.003753
0.009517
0.000000
0.016575
0.000454
Sector 15
0.000152
0.002242
0.006523
0.001874
0.002121
0.010420
0.019990
0.006544
0.015155
0.030832
0.065258
0.033201
0.039838
0.000084
0.597489
0.000867
0.005246
0.009279
0.000000
0.006242
0.000391
Sector 16
0.000175
0.002154
0.010487
0.002086
0.002358
0.007488
0.009048
0.010106
0.023014
0.034022
0.042912
0.030265
0.051804
0.001858
0.000169
0.618552
0.004036
0.011087
0.000000
0.007767
0.000303
Sector 17
0.000545
0.005355
0.014161
0.002673
0.002389
0.026582
0.035618
0.009458
0.019453
0.020512
0.047014
0.019431
0.035490
0.000076
0.000004
0.002848
0.523176
0.012208
0.000000
0.008746
0.000355
Sector 18
0.000160
0.002421
0.006470
0.002250
0.002719
0.010862
0.017799
0.010682
0.020198
0.046255
0.040802
0.024708
0.035118
0.002058
0.000049
0.002088
0.004459
0.615840
0.000000
0.006172
0.000326
Sector 19
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
0.000000
1.000000
0.000000
0.000000
Sector 20
0.000089
0.004742
0.002678
0.001886
0.002901
0.006682
0.004617
0.002770
0.003470
0.005672
0.006895
0.004694
0.010860
0.000017
0.000001
0.000160
0.000544
0.001485
0.000000
0.880595
0.000054
Sector 21
0.000182
0.003924
0.023250
0.006095
0.005442
0.011686
0.009781
0.007550
0.033589
0.028189
0.025377
0.037275
0.055132
0.000086
0.000006
0.001449
0.013807
0.017334
0.000000
0.015180
0.548892
Income Multiplier
0.946758
0.911533
0.899744
0.870749
0.85375
0.869689
0.786097
0.851437
1.000000
0.940813
0.844230
Note: Sector 1 = Agriculture, forestry, and fishing, Sector 2 = Mining and quarrying, Sector 3 = Electricity, gas, steam and air
conditioning supply, Sector 4 = Water supply; sewerage, waste management and remediation activities, Sector 5 = Construction,
Sector 6 = Manufacturing, Sector 7 = Wholesale and retail trade; repair of motor vehicles and motorcycles, Sector 8 = Transportation
and storage, Sector 9 = Information and communication, Sector 10 = Financial and insurance activities, Sector 11 = Real estate
activities, Sector 12 = Administrative and support service activities, Sector 13 = Professional, scientific and technical activities, Sector
14 = Education, Sector 15 = Human health and social work activities, Sector 16 = Arts, entertainment, and recreation, Sector 17 =
Food service activities only (out of Accommodation and food service activities), Sector 18 = Other service activities, Sector 19 =
Activities of households as employers; undifferentiated goods-and services-producing activities of households for own use, Sector 20
= Public administration and defense; compulsory social security, and Sector 21 = Hotel-related industry.
63
Texas Tech University, Hyojin Kim, August 2012
Table 23. Output Multiplier Based on the ISIC
Sector 1
Sector 2
Sector 3
Sector 4
Sector 5
Sector 6
Sector 7
Sector 8
Sector 9
Sector 10
Sector 11
Sector 12
Sector 13
Sector 14
Sector 15
Sector 16
Sector 17
Sector 18
Sector 19
Sector 20
Sector 21
Output Multiplier
Sector 1
1.1744
0.0211
0.0241
0.0024
0.0056
0.2106
0.0591
0.0406
0.0098
0.0556
0.0747
0.0163
0.0265
0.0012
0.0000
0.0009
0.0028
0.0060
0.0000
0.0097
0.0005
Sector 2
0.0010
1.1090
0.0135
0.0012
0.0187
0.0750
0.0245
0.0162
0.0106
0.0254
0.0127
0.0503
0.0648
0.0000
0.0000
0.0006
0.0024
0.0043
0.0000
0.0034
0.0002
Sector 3
0.0006
0.0774
1.0041
0.0013
0.0181
0.0481
0.0136
0.0649
0.0158
0.0334
0.0133
0.0175
0.0460
0.0003
0.0000
0.0009
0.0119
0.0060
0.0000
0.0022
0.0003
Sector 4
0.0007
0.0065
0.0087
1.0895
0.0187
0.0573
0.0180
0.0266
0.0296
0.0650
0.0234
0.0479
0.0714
0.0001
0.0000
0.0027
0.0109
0.0191
0.0000
0.0083
0.0007
Sector 5
0.0023
0.0185
0.0094
0.0022
1.0031
0.1790
0.0808
0.0259
0.0243
0.0287
0.0174
0.0327
0.0985
0.0001
0.0000
0.0011
0.0042
0.0172
0.0000
0.0035
0.0003
Sector 6
0.0132
0.0901
0.0300
0.0020
0.0067
1.2626
0.0665
0.0337
0.0173
0.0207
0.0123
0.0265
0.0515
0.0001
0.0000
0.0010
0.0045
0.0085
0.0000
0.0065
0.0002
Sector 7
0.0006
0.0032
0.0074
0.0016
0.0029
0.0284
1.0314
0.0303
0.0287
0.0354
0.0311
0.0300
0.0438
0.0005
0.0000
0.0014
0.0041
0.0124
0.0000
0.0037
0.0003
Sector 8
0.0017
0.0206
0.0095
0.0036
0.0106
0.1557
0.0290
1.0871
0.0222
0.0573
0.0274
0.0554
0.0446
0.0002
0.0000
0.0014
0.0082
0.0213
0.0000
0.0067
0.0003
Sector 9
0.0004
0.0035
0.0062
0.0026
0.0068
0.0361
0.0148
0.0151
1.1847
0.0342
0.0310
0.0515
0.0784
0.0003
0.0000
0.0110
0.0074
0.0126
0.0000
0.0037
0.0006
Sector 10
0.0002
0.0017
0.0041
0.0011
0.0067
0.0159
0.0071
0.0092
0.0487
1.3095
0.0372
0.0353
0.0691
0.0002
0.0000
0.0033
0.0145
0.0179
0.0000
0.0055
0.0009
1.7419
1.4340
1.3758
1.5050
1.5494
1.6541
1.2973
1.5626
1.5010
1.5882
Note: Sector 1 = Agriculture, forestry, and fishing, Sector 2 = Mining and quarrying, Sector 3 = Electricity, gas, steam and air
conditioning supply, Sector 4 = Water supply; sewerage, waste management and remediation activities, Sector 5 = Construction,
Sector 6 = Manufacturing, Sector 7 = Wholesale and retail trade; repair of motor vehicles and motorcycles, Sector 8 = Transportation
and storage, Sector 9 = Information and communication, Sector 10 = Financial and insurance activities, Sector 11 = Real estate
activities, Sector 12 = Administrative and support service activities, Sector 13 = Professional, scientific and technical activities, Sector
14 = Education, Sector 15 = Human health and social work activities, Sector 16 = Arts, entertainment, and recreation, Sector 17 =
Food service activities only (out of Accommodation and food service activities), Sector 18 = Other service activities, Sector 19 =
Activities of households as employers; undifferentiated goods-and services-producing activities of households for own use, Sector 20
= Public administration and defense; compulsory social security, and Sector 21 = Hotel-related industry.
64
Texas Tech University, Hyojin Kim, August 2012
Table 23. Output Multiplier Based on the ISIC (Continued)
Sector 1
Sector 2
Sector 3
Sector 4
Sector 5
Sector 6
Sector 7
Sector 8
Sector 9
Sector 10
Sector 11
Sector 12
Sector 13
Sector 14
Sector 15
Sector 16
Sector 17
Sector 18
Sector 19
Sector 20
Sector 21
Output Multiplier
Sector 11
0.0003
0.0025
0.0199
0.0176
0.0132
0.0106
0.0042
0.0049
0.0142
0.0647
1.0763
0.0301
0.0336
0.0000
0.0000
0.0012
0.0056
0.0046
0.0000
0.0094
0.0006
Sector 12
0.0006
0.0038
0.0052
0.0018
0.0237
0.0326
0.0169
0.0106
0.0262
0.1378
0.0509
1.0354
0.0482
0.0002
0.0000
0.0019
0.0072
0.0170
0.0000
0.0037
0.0006
Sector 13
0.0004
0.0025
0.0061
0.0016
0.0042
0.0227
0.0094
0.0133
0.0517
0.0472
0.0444
0.0480
1.0845
0.0001
0.0001
0.0037
0.0137
0.0121
0.0000
0.0038
0.0007
Sector 14
0.0006
0.0052
0.0300
0.0069
0.0048
0.0367
0.0164
0.0139
0.0450
0.0337
0.1004
0.0352
0.0445
1.0047
0.0000
0.0020
0.0072
0.0157
0.0000
0.0189
0.0008
Sector 15
0.0005
0.0041
0.0108
0.0034
0.0046
0.0414
0.0271
0.0130
0.0282
0.0577
0.0868
0.0498
0.0589
0.0001
1.0102
0.0015
0.0101
0.0153
0.0000
0.0071
0.0007
Sector 16
0.0006
0.0039
0.0173
0.0038
0.0051
0.0298
0.0123
0.0200
0.0428
0.0637
0.0571
0.0454
0.0766
0.0030
0.0003
1.0504
0.0078
0.0183
0.0000
0.0089
0.0006
Sector 17
0.0018
0.0097
0.0234
0.0048
0.0052
0.1057
0.0483
0.0187
0.0362
0.0384
0.0625
0.0291
0.0525
0.0001
0.0000
0.0048
1.0090
0.0202
0.0000
0.0100
0.0006
Sector 18
0.0005
0.0044
0.0107
0.0041
0.0059
0.0432
0.0242
0.0211
0.0376
0.0866
0.0543
0.0370
0.0519
0.0034
0.0001
0.0035
0.0086
1.0171
0.0000
0.0070
0.0006
Sector 19
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
0.0000
1.0000
0.0000
0.0000
Sector 20
0.0003
0.0086
0.0044
0.0034
0.0063
0.0266
0.0063
0.0055
0.0065
0.0106
0.0092
0.0070
0.0161
0.0000
0.0000
0.0003
0.0011
0.0025
0.0000
1.0047
0.0001
Sector 21
0.0006
0.0071
0.0384
0.0110
0.0118
0.0465
0.0133
0.0149
0.0625
0.0528
0.0338
0.0559
0.0815
0.0001
0.0000
0.0025
0.0266
0.0286
0.0000
0.0173
1.0005
1.3135
1.4245
1.3701
1.4228
1.4313
1.4675
1.4811
1.4218
1.0000
1.1193
1.5058
Note: Sector 1 = Agriculture, forestry, and fishing, Sector 2 = Mining and quarrying, Sector 3 = Electricity, gas, steam and air
conditioning supply, Sector 4 = Water supply; sewerage, waste management and remediation activities, Sector 5 = Construction,
Sector 6 = Manufacturing, Sector 7 = Wholesale and retail trade; repair of motor vehicles and motorcycles, Sector 8 = Transportation
and storage, Sector 9 = Information and communication, Sector 10 = Financial and insurance activities, Sector 11 = Real estate
activities, Sector 12 = Administrative and support service activities, Sector 13 = Professional, scientific and technical activities, Sector
14 = Education, Sector 15 = Human health and social work activities, Sector 16 = Arts, entertainment, and recreation, Sector 17 =
Food service activities only (out of Accommodation and food service activities), Sector 18 = Other service activities, Sector 19 =
Activities of households as employers; undifferentiated goods-and services-producing activities of households for own use, Sector 20
= Public administration and defense; compulsory social security, and Sector 21 = Hotel-related industry.
65
Texas Tech University, Hyojin Kim, August 2012
Input-Output Analysis Based on the NAICS
In Table 24, the top five-ranked aggregated sectors for an income multiplier are 1) retail
trade, 2) public administration, 3) real estate and rental and leasing, 4) professional, scientific,
and technical services, and 5) management of companies and enterprises, based on the NAICS.
The income multipliers for these grouped industries are 0.953, 0.940, 0.932, 0.900, and 0.881,
respectively. The income multiplier from the hotel-related industry is 0.843, which implies that,
for each $1 million of income generated by the hotel-related industrial sector alone, a $0.843
million value of direct, indirect, induced income is generated.
Table 25 presents the Type SAM output multipliers of each grouped industrial sector.
Among 21 industrial sectors, the top five-ranked industries are listed as 1) agriculture, forestry,
fishing, and hunting, 2) manufacturing, 3) finance and insurance, 4) transportation and
warehousing, and 5) construction. Their corresponding output multipliers are 1.751, 1.660, 1.590,
1.565, and 1.548. Meanwhile, the hotel-related sector’s output multiplier comes in at 1.507. This
means that, for each $1 million of output generated by the hotel-related sector, $1.507 million
worth of direct, indirect, and induced output are generated.
66
Texas Tech University, Hyojin Kim, August 2012
Table 24. Income Multiplier Based on the NAICS
Sector 1
Sector 2
Sector 3
Sector 4
Sector 5
Sector 6
Sector 7
Sector 8
Sector 9
Sector 10
Sector 11
Sector 12
Sector 13
Sector 14
Sector 15
Sector 16
Sector 17
Sector 18
Sector 19
Sector 20
Sector 21
Sector 1
0.359347
0.011659
0.014619
0.002874
0.053289
0.038693
0.001570
0.020865
0.005626
0.031929
0.057069
0.016365
0.002412
0.007042
0.000717
0.000002
0.000526
0.001460
0.004166
0.008350
0.000279
Sector 2
0.000317
0.609335
0.008375
0.008632
0.018840
0.014611
0.002137
0.008224
0.005795
0.013464
0.038536
0.035428
0.008198
0.006371
0.000025
0.000003
0.000352
0.001222
0.002669
0.003051
0.000096
Sector 3
0.000170
0.041470
0.609811
0.009088
0.012128
0.008124
0.001209
0.032117
0.008694
0.017756
0.013327
0.031714
0.001377
0.008571
0.000191
0.000003
0.000552
0.006083
0.003950
0.001916
0.000143
Sector 4
0.000701
0.010185
0.005775
0.463006
0.045096
0.029977
0.029747
0.013121
0.012970
0.014955
0.022949
0.064363
0.002742
0.012505
0.000081
0.000007
0.000675
0.002246
0.010631
0.003065
0.000159
Sector 5
0.004032
0.049514
0.018335
0.003035
0.317869
0.042174
0.002943
0.017321
0.009904
0.010956
0.016888
0.025399
0.009827
0.010982
0.000062
0.000003
0.000632
0.002375
0.005471
0.005706
0.000134
Sector 6
0.000151
0.002444
0.004714
0.001385
0.010227
0.689862
0.001381
0.020601
0.019649
0.022805
0.026926
0.033620
0.007580
0.021388
0.000261
0.000004
0.001005
0.002724
0.010448
0.003446
0.000170
Sector 7
0.000244
0.000977
0.004090
0.001147
0.003491
0.005787
0.845213
0.008549
0.010657
0.013516
0.025213
0.013401
0.001493
0.009081
0.000414
0.000002
0.000602
0.001426
0.004278
0.002802
0.000124
Sector 8
0.000517
0.011391
0.005817
0.004622
0.039454
0.016473
0.003553
0.549319
0.012441
0.029587
0.030405
0.027064
0.003784
0.027599
0.000112
0.000004
0.000890
0.004393
0.013264
0.005854
0.000151
Sector 9
0.000139
0.001964
0.003767
0.002943
0.009355
0.009323
0.000696
0.007829
0.637213
0.017485
0.031732
0.050996
0.002920
0.025534
0.000181
0.000007
0.006525
0.003955
0.007900
0.003223
0.000356
Sector 10
0.000075
0.000997
0.002383
0.002988
0.004253
0.003869
0.001177
0.004828
0.026543
0.699319
0.028689
0.043031
0.004331
0.020712
0.000127
0.000005
0.001953
0.007632
0.011217
0.004745
0.000495
Income Multiplier
0.638858
0.785678
0.808394
0.744956
0.553563
0.880792
0.952506
0.786693
0.824042
0.869370
Note: Sector 1 = Agriculture, Forestry, Fishing, and Hunting, Sector 2 = Mining, Quarrying, and Oil and Gas Extraction, Sector 3 =
Utilities, Sector 4 = Construction, Sector 5 = Manufacturing, Sector 6 = Wholesale Trade, Sector 7 = Retail Trade, Sector 8 =
Transportation and Warehousing, Sector 9 = Information, Sector 10 = Finance and Insurance, Sector 11 = Real Estate and Rental and
Leasing, Sector 12 = Professional, Scientific, and Technical Services, Sector 13 = Management of Companies and Enterprises, Sector
14 = Administrative and Support and Waste Management and Remediation Services, Sector 15 = Educational Services, Sector 16 =
Health Care and Social Assistance, Sector 17 = Arts, Entertainment, and Recreation, Sector 18 = Food Services only (out of
Accommodation and Food Services), Sector 19 = Other Services (except Public Administration), Sector 20 = Public Administration,
and Sector 21 = Hotel-related industry.
67
Texas Tech University, Hyojin Kim, August 2012
Table 24. Income Multiplier Based on the NAICS (Continued)
Sector 1
Sector 2
Sector 3
Sector 4
Sector 5
Sector 6
Sector 7
Sector 8
Sector 9
Sector 10
Sector 11
Sector 12
Sector 13
Sector 14
Sector 15
Sector 16
Sector 17
Sector 18
Sector 19
Sector 20
Sector 21
Sector 11
0.000106
0.001375
0.006548
0.011185
0.004614
0.006667
0.002826
0.003533
0.008576
0.069519
0.754912
0.023105
0.002167
0.020395
0.000046
0.000003
0.000656
0.002534
0.007747
0.005044
0.000308
Sector 12
0.000133
0.001420
0.003367
0.001755
0.005925
0.005649
0.000783
0.007257
0.024843
0.024313
0.036900
0.737613
0.002796
0.027161
0.000070
0.000066
0.001970
0.007568
0.007048
0.003281
0.000421
Sector 13
0.000121
0.001564
0.005237
0.001983
0.006560
0.006342
0.000515
0.004704
0.050993
0.028194
0.041464
0.085188
0.607756
0.017056
0.000071
0.000009
0.003878
0.004911
0.011488
0.003229
0.000231
Sector 14
0.000413
0.004002
0.004063
0.001238
0.015056
0.006891
0.001143
0.009502
0.027006
0.025447
0.028443
0.043812
0.004551
0.677285
0.000195
0.000013
0.002480
0.007664
0.010058
0.004079
0.000413
Sector 15
0.000196
0.002953
0.019223
0.002473
0.009569
0.010853
0.000741
0.007272
0.024546
0.019985
0.075378
0.029194
0.001747
0.020017
0.612368
0.000004
0.001194
0.003822
0.010143
0.016297
0.000453
Sector 16
0.000160
0.002325
0.006304
0.002134
0.010876
0.016541
0.002395
0.006862
0.015840
0.031684
0.064931
0.035111
0.005633
0.029740
0.000088
0.597489
0.000923
0.005374
0.009882
0.006033
0.000392
Sector 17
0.000182
0.002208
0.010448
0.002291
0.007800
0.007333
0.001290
0.010299
0.023485
0.034146
0.046231
0.046756
0.005731
0.025371
0.001860
0.000170
0.618593
0.004143
0.011548
0.007640
0.000304
Sector 18
0.000547
0.005393
0.014173
0.002520
0.026871
0.029500
0.003849
0.009709
0.019991
0.021776
0.050992
0.028042
0.007890
0.014665
0.000076
0.000004
0.002884
0.523213
0.012830
0.008591
0.000354
Sector 19
0.000161
0.002405
0.006285
0.002579
0.010801
0.012513
0.004051
0.010536
0.019920
0.044943
0.039665
0.032201
0.002510
0.022269
0.001992
0.000048
0.002053
0.004416
0.629056
0.005839
0.000316
Sector 20
0.000091
0.004773
0.002997
0.002877
0.006743
0.003946
0.000328
0.002826
0.003546
0.005677
0.007229
0.010661
0.000411
0.005454
0.000018
0.000001
0.000166
0.000572
0.001550
0.880565
0.000055
Sector 21
0.000192
0.003998
0.023784
0.005146
0.012012
0.007786
0.001300
0.007710
0.034342
0.027034
0.031021
0.046513
0.009153
0.035248
0.000089
0.000006
0.001516
0.013952
0.017820
0.015108
0.548894
Income Multiplier
0.931865
0.900338
0.881497
0.873752
0.868429
0.850717
0.867827
0.783870
0.854558
0.940485
0.842624
Note: Sector 1 = Agriculture, Forestry, Fishing, and Hunting, Sector 2 = Mining, Quarrying, and Oil and Gas Extraction, Sector 3 =
Utilities, Sector 4 = Construction, Sector 5 = Manufacturing, Sector 6 = Wholesale Trade, Sector 7 = Retail Trade, Sector 8 =
Transportation and Warehousing, Sector 9 = Information, Sector 10 = Finance and Insurance, Sector 11 = Real Estate and Rental and
Leasing, Sector 12 = Professional, Scientific, and Technical Services, Sector 13 = Management of Companies and Enterprises, Sector
14 = Administrative and Support and Waste Management and Remediation Services, Sector 15 = Educational Services, Sector 16 =
Health Care and Social Assistance, Sector 17 = Arts, Entertainment, and Recreation, Sector 18 = Food Services only (out of
Accommodation and Food Services), Sector 19 = Other Services (except Public Administration), Sector 20 = Public Administration,
and Sector 21 = Hotel-related industry.
68
Texas Tech University, Hyojin Kim, August 2012
Table 25. Output Multiplier Based on the NAICS
Sector 1
Sector 2
Sector 3
Sector 4
Sector 5
Sector 6
Sector 7
Sector 8
Sector 9
Sector 10
Sector 11
Sector 12
Sector 13
Sector 14
Sector 15
Sector 16
Sector 17
Sector 18
Sector 19
Sector 20
Sector 21
Output Multiplier
Sector 1
1.1744
0.0212
0.0241
0.0062
0.2118
0.0587
0.0019
0.0413
0.0105
0.0598
0.0808
0.0238
0.0040
0.0110
0.0012
0.0000
0.0009
0.0028
0.0067
0.0095
0.0005
Sector 2
0.0010
1.1090
0.0138
0.0187
0.0749
0.0222
0.0025
0.0163
0.0108
0.0252
0.0545
0.0516
0.0135
0.0100
0.0000
0.0000
0.0006
0.0024
0.0043
0.0035
0.0002
Sector 3
0.0006
0.0755
1.0043
0.0197
0.0482
0.0123
0.0014
0.0636
0.0162
0.0332
0.0189
0.0462
0.0023
0.0134
0.0003
0.0000
0.0009
0.0117
0.0064
0.0022
0.0003
Sector 4
0.0023
0.0185
0.0095
1.0029
0.1793
0.0455
0.0352
0.0260
0.0241
0.0280
0.0325
0.0938
0.0045
0.0196
0.0001
0.0000
0.0011
0.0043
0.0172
0.0035
0.0003
Sector 5
0.0132
0.0901
0.0302
0.0066
1.2636
0.0639
0.0035
0.0343
0.0184
0.0205
0.0239
0.0370
0.0162
0.0172
0.0001
0.0000
0.0011
0.0046
0.0088
0.0065
0.0002
Sector 6
0.0005
0.0044
0.0078
0.0030
0.0407
1.0460
0.0016
0.0408
0.0365
0.0427
0.0381
0.0490
0.0125
0.0336
0.0004
0.0000
0.0017
0.0053
0.0169
0.0039
0.0003
Sector 7
0.0008
0.0018
0.0067
0.0025
0.0139
0.0088
1.0015
0.0169
0.0198
0.0253
0.0357
0.0195
0.0025
0.0143
0.0007
0.0000
0.0010
0.0028
0.0069
0.0032
0.0002
Sector 8
0.0017
0.0207
0.0096
0.0100
0.1568
0.0250
0.0042
1.0875
0.0231
0.0554
0.0430
0.0394
0.0062
0.0433
0.0002
0.0000
0.0015
0.0085
0.0214
0.0067
0.0003
Sector 9
0.0005
0.0036
0.0062
0.0064
0.0372
0.0141
0.0008
0.0155
1.1853
0.0327
0.0449
0.0743
0.0048
0.0401
0.0003
0.0000
0.0111
0.0076
0.0128
0.0037
0.0006
Sector 10
0.0002
0.0018
0.0039
0.0065
0.0169
0.0059
0.0014
0.0096
0.0494
1.3090
0.0406
0.0627
0.0071
0.0325
0.0002
0.0000
0.0033
0.0147
0.0181
0.0054
0.0009
1.7511
1.4350
1.3776
1.5483
1.6600
1.3857
1.1848
1.5647
1.5025
1.5902
Note: Sector 1 = Agriculture, Forestry, Fishing, and Hunting, Sector 2 = Mining, Quarrying, and Oil and Gas Extraction, Sector 3 =
Utilities, Sector 4 = Construction, Sector 5 = Manufacturing, Sector 6 = Wholesale Trade, Sector 7 = Retail Trade, Sector 8 =
Transportation and Warehousing, Sector 9 = Information, Sector 10 = Finance and Insurance, Sector 11 = Real Estate and Rental and
Leasing, Sector 12 = Professional, Scientific, and Technical Services, Sector 13 = Management of Companies and Enterprises, Sector
14 = Administrative and Support and Waste Management and Remediation Services, Sector 15 = Educational Services, Sector 16 =
Health Care and Social Assistance, Sector 17 = Arts, Entertainment, and Recreation, Sector 18 = Food Services only (out of
Accommodation and Food Services), Sector 19 = Other Services (except Public Administration), Sector 20 = Public Administration,
and Sector 21 = Hotel-related industry.
69
Texas Tech University, Hyojin Kim, August 2012
Table 25. Output Multiplier Based on the NAICS (Continued)
Sector 1
Sector 2
Sector 3
Sector 4
Sector 5
Sector 6
Sector 7
Sector 8
Sector 9
Sector 10
Sector 11
Sector 12
Sector 13
Sector 14
Sector 15
Sector 16
Sector 17
Sector 18
Sector 19
Sector 20
Sector 21
Output Multiplier
Sector 11
0.0003
0.0025
0.0108
0.0242
0.0183
0.0101
0.0033
0.0070
0.0160
0.1301
1.0683
0.0337
0.0036
0.0320
0.0001
0.0000
0.0011
0.0049
0.0125
0.0058
0.0006
Sector 12
0.0004
0.0026
0.0055
0.0038
0.0236
0.0086
0.0009
0.0144
0.0462
0.0455
0.0522
1.0748
0.0046
0.0426
0.0001
0.0001
0.0033
0.0146
0.0114
0.0037
0.0008
Sector 13
0.0004
0.0028
0.0086
0.0043
0.0261
0.0096
0.0006
0.0093
0.0949
0.0528
0.0587
0.1241
1.0018
0.0268
0.0001
0.0000
0.0066
0.0095
0.0186
0.0037
0.0004
Sector 14
0.0013
0.0073
0.0067
0.0027
0.0598
0.0104
0.0014
0.0188
0.0502
0.0476
0.0403
0.0638
0.0075
1.0628
0.0003
0.0000
0.0042
0.0148
0.0163
0.0047
0.0008
Sector 15
0.0006
0.0054
0.0317
0.0054
0.0380
0.0165
0.0009
0.0144
0.0457
0.0374
0.1067
0.0425
0.0029
0.0314
1.0047
0.0000
0.0020
0.0074
0.0164
0.0186
0.0008
Sector 16
0.0005
0.0042
0.0104
0.0046
0.0432
0.0251
0.0028
0.0136
0.0295
0.0593
0.0919
0.0512
0.0093
0.0467
0.0001
1.0102
0.0016
0.0104
0.0160
0.0069
0.0007
Sector 17
0.0006
0.0040
0.0172
0.0050
0.0310
0.0111
0.0015
0.0204
0.0437
0.0639
0.0654
0.0681
0.0094
0.0398
0.0031
0.0003
1.0504
0.0080
0.0187
0.0087
0.0006
Sector 18
0.0018
0.0098
0.0233
0.0055
0.1068
0.0447
0.0046
0.0192
0.0372
0.0408
0.0722
0.0409
0.0130
0.0230
0.0001
0.0000
0.0049
1.0091
0.0207
0.0098
0.0006
Sector 19
0.0005
0.0044
0.0104
0.0056
0.0429
0.0190
0.0048
0.0209
0.0371
0.0841
0.0561
0.0469
0.0041
0.0349
0.0033
0.0001
0.0035
0.0085
1.0169
0.0067
0.0006
Sector 20
0.0003
0.0087
0.0049
0.0062
0.0268
0.0060
0.0004
0.0056
0.0066
0.0106
0.0102
0.0155
0.0007
0.0086
0.0000
0.0000
0.0003
0.0011
0.0025
1.0047
0.0001
Sector 21
0.0006
0.0073
0.0392
0.0111
0.0478
0.0118
0.0015
0.0153
0.0639
0.0506
0.0439
0.0678
0.0151
0.0553
0.0001
0.0000
0.0026
0.0269
0.0288
0.0172
1.0005
1.3852
1.3598
1.4596
1.4217
1.4293
1.4381
1.4709
1.4880
1.4112
1.1199
1.5073
Note: Sector 1 = Agriculture, Forestry, Fishing, and Hunting, Sector 2 = Mining, Quarrying, and Oil and Gas Extraction, Sector 3 =
Utilities, Sector 4 = Construction, Sector 5 = Manufacturing, Sector 6 = Wholesale Trade, Sector 7 = Retail Trade, Sector 8 =
Transportation and Warehousing, Sector 9 = Information, Sector 10 = Finance and Insurance, Sector 11 = Real Estate and Rental and
Leasing, Sector 12 = Professional, Scientific, and Technical Services, Sector 13 = Management of Companies and Enterprises, Sector
14 = Administrative and Support and Waste Management and Remediation Services, Sector 15 = Educational Services, Sector 16 =
Health Care and Social Assistance, Sector 17 = Arts, Entertainment, and Recreation, Sector 18 = Food Services only (out of
Accommodation and Food Services), Sector 19 = Other Services (except Public Administration), Sector 20 = Public Administration,
and Sector 21 = Hotel-related industry.
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Texas Tech University, Hyojin Kim, August 2012
CHAPTER V
CONCLUSIONS, DISCUSSION, AND IMPLICATIONS
Conclusions
Summary of the Findings
This study has been carried out to analyze the economic impacts of the hotel industry in
Texas, using the input-output table. As a result of the input-output analysis, the study answered a
question about the extent to which the output, labor income, value added, and employment
generated by the two hotel industry sectors (the hotel and the other accommodations sectors)
influence the economy of Texas.
The findings of this study are broadly synopsized as follows. First, although neither of the
two hotel industry sectors had a major impact on the economy of Texas compared to other
industries, such as the manufacturing industry, the hotel industries make a small contribution to
the state compared to manufacturing and other industries, according to multipliers of output,
labor income, value added, and employment derived from the input-output analysis, as shown in
Table 21.
Second, together with this result, the interdependence between the aggregated hotel
industry and other grouped industries was examined. Given the fact that the larger was the output
multiplier, the greater was the interdependence of the sector with the rest of the local economy,
the hotel-related industry was shown to have a less interdependent relationship in comparison
with other-related industries, such as the manufacturing-related, construction-related, and finance
and insurance-related sectors. However, compared to the wholesale and retail trade sectors, the
hotel-related industry was more interdependent with the rest of the Texas economy.
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Texas Tech University, Hyojin Kim, August 2012
Third, interestingly, while the hotel industry generated more labor income and
employment than did the other accommodations industry, the latter created more output and
value added than did the hotel industry. This result appears to be important information to the
policy-making decision of the state government or the Texas Hotel & Lodging Association
according to its policy direction of whether more labor income or value added is pursued in a
future plan.
Discussion and Implications
Much research has been devoted to measuring the economic impacts of local and national
events. However, few studies of the economic impact of the hotel industry, to be considered a
representative of the hospitality industry, have been conducted recently. Therefore, this study
was of value as one of only a few research efforts applying input-output analysis in the
hospitality field.
In this study, to solve the problem of inconvenience in comparing all 440 industrial
sectors, each individual sector was aggregated into the related sector, based on the ISIC and
NAICS. The two industrial sectors, that is, 1) the hotels and motels including casino hotels
industry and 2) the other accommodations industry, were categorized into the hotel-related group.
It is, however, a matter for consideration that other industries might be aggregated into the hotelrelated industry, out of 440 industries in Texas, except for only the two industrial sectors. For
example, the food service industry could be regarded as the hotel-related industry in that the food
service industry provides many hotels with food supplies.
Through quantified economic information, the input-output analysis is anticipated to be
helpful to future plans or policies associated with the hotel industry. Specifically, based on the
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Texas Tech University, Hyojin Kim, August 2012
results of each multiplier indicating employment, labor income, output, and value added in
individual industry, the state government (especially and Office of the Governor, Economic
Development & Tourism) cannot only seek balanced development between the hotel-related
industries and other industries in the State of Texas, but also use the results for policy-making
purposes, such as investment plan to hire more employees in the hotel industry. Moreover, by
identifying and comparing the four multipliers in the hotel industry with ones in other industrial
fields, professional organizations such as Texas Travel Industry Association and Texas Hotel &
Lodging Association can take advantage of the results as a long-run investment map for growth
and advancement of the hospitality and tourism industry.
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Texas Tech University, Hyojin Kim, August 2012
Limitations and Recommendations for Future Research
One of constraints was that this study was cross-sectional research focusing solely on the
year 2009. For future studies, longitudinal research—for instance, a five-year or ten-year
period—is needed to identify the trends of economic impact for the hotel industry.
Secondly, other than the study of the economic impact of the hotel industry within the
State of Texas, a study of the interrelationship among many counties in Texas or among states
bordering the State of Texas (New Mexico, Oklahoma, Arkansas, and Louisiana), using the
input-output analysis, is worth attempting. By conducting inter-regional or inter-state inputoutput analysis, such a study would investigate the interdependent relationships between counties
and states in more detail.
Thirdly, beyond the input-output analysis of the hotel industry, the analysis of the overall
hospitality or tourism industry seems to be significant, albeit there is a difficulty in defining the
hospitality and tourism field.
Finally, for this study, 440 industrial sectors were categorized into 21 and 20 sectors
based on the ISIC and NAICS. It is believed, however, that there are many industrial
classification standards that function in different ways. It will be a significant study to compare
and analyze the economic impacts of the hotel industry based on several industrial classification
methods.
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Texas Tech University, Hyojin Kim, August 2012
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78
Texas Tech University, Hyojin Kim, August 2012
APPENDIX A
CATEGORY OF 21 INDUSTRIAL SECTORS BASED ON THE ISIC
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Texas Tech University, Hyojin Kim, August 2012
Groups of 21 Industrial Sectors Based on the ISIC
Industry
Code
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
IMPLAN Description
27
28
29
30
Oilseed farming
Grain farming
Vegetable and melon farming
Fruit farming
Tree nut farming
Greenhouse, nursery, and floriculture production
Tobacco farming
Cotton farming
Sugarcane and sugar beet farming
All other crop farming
Cattle ranching and farming
Dairy cattle and milk production
Poultry and egg production
Animal production, except cattle and poultry and eggs
Forestry, forest products, and timber tract production
Commercial logging
Commercial Fishing
Commercial hunting and trapping
Support activities for agriculture and forestry
Extraction of oil and natural gas
Mining coal
Mining iron ore
Mining copper, nickel, lead, and zinc
Mining gold, silver, and other metal ore
Mining and quarrying stone
Mining and quarrying sand, gravel, clay, and ceramic and
refractory minerals
Mining and quarrying other nonmetallic minerals
Drilling oil and gas wells
Support activities for oil and gas operations
Support activities for other mining
31
Electric power generation, transmission, and distribution
32
Natural gas distribution
33
Water, sewage and other treatment and delivery systems
390
Waste management and remediation services
26
34
35
36
37
38
39
40
Construction of new nonresidential commercial and health care
structures
Construction of new nonresidential manufacturing structures
Construction of other new nonresidential structures
Construction of new residential permanent site single- and multifamily structures
Construction of other new residential structures
Maintenance and repair construction of nonresidential structures
Maintenance and repair construction of residential structures
80
ISIC
(21 sectors)
Agriculture, forestry, and
fishing
Mining and quarrying
Electricity, gas, steam and
air conditioning supply
Water supply; sewerage,
waste management and
remediation activities
Construction
Texas Tech University, Hyojin Kim, August 2012
Groups of 21 Industrial Sectors Based on the ISIC (Continued)
Industry
Code
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
IMPLAN Description
Dog and cat food manufacturing
Other animal food manufacturing
Flour milling and malt manufacturing
Wet corn milling
Soybean and other oilseed processing
Fats and oils refining and blending
Breakfast cereal manufacturing
Sugar cane mills and refining
Beet sugar manufacturing
Chocolate and confectionery manufacturing from cacao beans
Confectionery manufacturing from purchased chocolate
Nonchocolate confectionery manufacturing
Frozen food manufacturing
Fruit and vegetable canning, pickling, and drying
Fluid milk and butter manufacturing
Cheese manufacturing
Dry, condensed, and evaporated dairy product manufacturing
Ice cream and frozen dessert manufacturing
Animal (except poultry) slaughtering, rendering, and processing
Poultry processing
Seafood product preparation and packaging
Bread and bakery product manufacturing
Cookie, cracker, and pasta manufacturing
Tortilla manufacturing
Snack food manufacturing
Coffee and tea manufacturing
Flavoring syrup and concentrate manufacturing
Seasoning and dressing manufacturing
All other food manufacturing
Soft drink and ice manufacturing
Breweries
Wineries
Distilleries
Tobacco product manufacturing
Fiber, yarn, and thread mills
Broadwoven fabric mills
Narrow fabric mills and schiffli machine embroidery
Nonwoven fabric mills
Knit fabric mills
Textile and fabric finishing mills
81
ISIC
(21 sectors)
Manufacturing
Texas Tech University, Hyojin Kim, August 2012
Groups of 21 Industrial Sectors Based on the ISIC (Continued)
Industry
Code
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
IMPLAN Description
Fabric coating mills
Carpet and rug mills
Curtain and linen mills
Textile bag and canvas mills
All other textile product mills
Apparel knitting mills
Cut and sew apparel contractors
Men's and boys' cut and sew apparel manufacturing
Women's and girls' cut and sew apparel manufacturing
Other cut and sew apparel manufacturing
Apparel accessories and other apparel manufacturing
Leather and hide tanning and finishing
Footwear manufacturing
Other leather and allied product manufacturing
Sawmills and wood preservation
Veneer and plywood manufacturing
Engineered wood member and truss manufacturing
Reconstituted wood product manufacturing
Wood windows and doors and millwork manufacturing
Wood container and pallet manufacturing
Manufactured home (mobile home) manufacturing
Prefabricated wood building manufacturing
All other miscellaneous wood product manufacturing
Pulp mills
Paper mills
Paperboard Mills
Paperboard container manufacturing
Coated and laminated paper, packaging paper and plastics film
manufacturing
All other paper bag and coated and treated paper manufacturing
Stationery product manufacturing
Sanitary paper product manufacturing
All other converted paper product manufacturing
Printing
Support activities for printing
Petroleum refineries
Asphalt paving mixture and block manufacturing
Asphalt shingle and coating materials manufacturing
Petroleum lubricating oil and grease manufacturing
All other petroleum and coal products manufacturing
Petrochemical manufacturing
82
ISIC
(21 sectors)
Manufacturing
Texas Tech University, Hyojin Kim, August 2012
Groups of 21 Industrial Sectors Based on the ISIC (Continued)
Industry
Code
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
IMPLAN Description
Industrial gas manufacturing
Synthetic dye and pigment manufacturing
Alkalies and chlorine manufacturing
Carbon black manufacturing
All other basic inorganic chemical manufacturing
Other basic organic chemical manufacturing
Plastics material and resin manufacturing
Synthetic rubber manufacturing
Artificial and synthetic fibers and filaments manufacturing
Fertilizer manufacturing
Pesticide and other agricultural chemical manufacturing
Medicinal and botanical manufacturing
Pharmaceutical preparation manufacturing
In-vitro diagnostic substance manufacturing
Biological product (except diagnostic) manufacturing
Paint and coating manufacturing
Adhesive manufacturing
Soap and cleaning compound manufacturing
Toilet preparation manufacturing
Printing ink manufacturing
All other chemical product and preparation manufacturing
Plastics packaging materials and unlaminated film and sheet
manufacturing
Unlaminated plastics profile shape manufacturing
Plastics pipe and pipe fitting manufacturing
Laminated plastics plate, sheet (except packaging), and shape
manufacturing
Polystyrene foam product manufacturing
Urethane and other foam product (except polystyrene)
manufacturing
Plastics bottle manufacturing
Other plastics product manufacturing
Tire manufacturing
Rubber and plastics hoses and belting manufacturing
Other rubber product manufacturing
Pottery, ceramics, and plumbing fixture manufacturing
Brick, tile, and other structural clay product manufacturing
Clay and nonclay refractory manufacturing
Flat glass manufacturing
Other pressed and blown glass and glassware manufacturing
Glass container manufacturing
Glass product manufacturing made of purchased glass
Cement manufacturing
83
ISIC
(21 sectors)
Manufacturing
Texas Tech University, Hyojin Kim, August 2012
Groups of 21 Industrial Sectors Based on the ISIC (Continued)
Industry
Code
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
IMPLAN Description
Ready-mix concrete manufacturing
Concrete pipe, brick, and block manufacturing
Other concrete product manufacturing
Lime and gypsum product manufacturing
Abrasive product manufacturing
Cut stone and stone product manufacturing
Ground or treated mineral and earth manufacturing
Mineral wool manufacturing
Miscellaneous nonmetallic mineral product manufacturing
Iron and steel mills and ferroalloy manufacturing
Steel product manufacturing from purchased steel
Alumina refining and primary aluminum production
Secondary smelting and alloying of aluminum
Aluminum product manufacturing from purchased aluminum
Primary smelting and refining of copper
Primary smelting and refining of nonferrous metal (except copper
and aluminum)
Copper rolling, drawing, extruding and alloying
Nonferrous metal (except copper and aluminum) rolling, drawing,
extruding and alloying
Ferrous metal foundries
Nonferrous metal foundries
All other forging, stamping, and sintering
Custom roll forming
Crown and closure manufacturing and metal stamping
Cutlery, utensil, pot, and pan manufacturing
Handtool manufacturing
Plate work and fabricated structural product manufacturing
Ornamental and architectural metal products manufacturing
Power boiler and heat exchanger manufacturing
Metal tank (heavy gauge) manufacturing
Metal can, box, and other metal container (light gauge)
manufacturing
Ammunition manufacturing
Arms, ordnance, and accessories manufacturing
Hardware manufacturing
Spring and wire product manufacturing
Machine shops
Turned product and screw, nut, and bolt manufacturing
Coating, engraving, heat treating and allied activities
Valve and fittings other than plumbing manufacturing
Plumbing fixture fitting and trim manufacturing
Ball and roller bearing manufacturing
84
ISIC
(21 sectors)
Manufacturing
Texas Tech University, Hyojin Kim, August 2012
Groups of 21 Industrial Sectors Based on the ISIC (Continued)
Industry
Code
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
IMPLAN Description
ISIC
(21 sectors)
Fabricated pipe and pipe fitting manufacturing
Other fabricated metal manufacturing
Farm machinery and equipment manufacturing
Lawn and garden equipment manufacturing
Construction machinery manufacturing
Mining and oil and gas field machinery manufacturing
Other industrial machinery manufacturing
Plastics and rubber industry machinery manufacturing
Semiconductor machinery manufacturing
Vending, commercial, industrial, and office machinery manufacturing
Optical instrument and lens manufacturing
Photographic and photocopying equipment manufacturing
Other commercial and service industry machinery manufacturing
Air purification and ventilation equipment manufacturing
Heating equipment (except warm air furnaces) manufacturing
Air conditioning, refrigeration, and warm air heating equipment
manufacturing
Industrial mold manufacturing
Metal cutting and forming machine tool manufacturing
Special tool, die, jig, and fixture manufacturing
Cutting tool and machine tool accessory manufacturing
Rolling mill and other metalworking machinery manufacturing
Turbine and turbine generator set units manufacturing
Speed changer, industrial high-speed drive, and gear manufacturing
Mechanical power transmission equipment manufacturing
Other engine equipment manufacturing
Pump and pumping equipment manufacturing
Air and gas compressor manufacturing
Material handling equipment manufacturing
Power-driven handtool manufacturing
Other general purpose machinery manufacturing
Packaging machinery manufacturing
Industrial process furnace and oven manufacturing
Fluid power process machinery manufacturing
Electronic computer manufacturing
Computer storage device manufacturing
Computer terminals and other computer peripheral equipment
manufacturing
Telephone apparatus manufacturing
Broadcast and wireless communications equipment manufacturing
Other communications equipment manufacturing
Audio and video equipment manufacturing
Manufacturing
85
Texas Tech University, Hyojin Kim, August 2012
Groups of 21 Industrial Sectors Based on the ISIC (Continued)
Industry
Code
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
IMPLAN Description
Electron tube manufacturing
Bare printed circuit board manufacturing
Semiconductor and related device manufacturing
Electronic capacitor, resistor, coil, transformer, and other inductor
manufacturing
Electronic connector manufacturing
Printed circuit assembly (electronic assembly) manufacturing
Other electronic component manufacturing
Electromedical and electrotherapeutic apparatus manufacturing
Search, detection, and navigation instruments manufacturing
Automatic environmental control manufacturing
Industrial process variable instruments manufacturing
Totalizing fluid meters and counting devices manufacturing
Electricity and signal testing instruments manufacturing
Analytical laboratory instrument manufacturing
Irradiation apparatus manufacturing
Watch, clock, and other measuring and controlling device
manufacturing
Software, audio, and video media for reproduction
Magnetic and optical recording media manufacturing
Electric lamp bulb and part manufacturing
Lighting fixture manufacturing
Small electrical appliance manufacturing
Household cooking appliance manufacturing
Household refrigerator and home freezer manufacturing
Household laundry equipment manufacturing
Other major household appliance manufacturing
Power, distribution, and specialty transformer manufacturing
Motor and generator manufacturing
Switchgear and switchboard apparatus manufacturing
Relay and industrial control manufacturing
Storage battery manufacturing
Primary battery manufacturing
Communication and energy wire and cable manufacturing
Wiring device manufacturing
Carbon and graphite product manufacturing
All other miscellaneous electrical equipment and component
manufacturing
Automobile manufacturing
Light truck and utility vehicle manufacturing
Heavy duty truck manufacturing
Motor vehicle body manufacturing
Truck trailer manufacturing
86
ISIC
(21 sectors)
Manufacturing
Texas Tech University, Hyojin Kim, August 2012
Groups of 21 Industrial Sectors Based on the ISIC (Continued)
Industry
Code
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
IMPLAN Description
ISIC
(21 sectors)
Motor home manufacturing
Travel trailer and camper manufacturing
Motor vehicle parts manufacturing
Aircraft manufacturing
Aircraft engine and engine parts manufacturing
Other aircraft parts and auxiliary equipment manufacturing
Guided missile and space vehicle manufacturing
Propulsion units and parts for space vehicles and guided missiles
manufacturing
Railroad rolling stock manufacturing
Ship building and repairing
Boat building
Motorcycle, bicycle, and parts manufacturing
Military armored vehicle, tank, and tank component manufacturing
All other transportation equipment manufacturing
Wood kitchen cabinet and countertop manufacturing
Upholstered household furniture manufacturing
Nonupholstered wood household furniture manufacturing
Metal and other household furniture (except wood) manufacturing
Institutional furniture manufacturing
Wood television, radio, and sewing machine cabinet manufacturing
Office furniture and custom architectural woodwork and millwork
manufacturing
Showcase, partition, shelving, and locker manufacturing
Mattress manufacturing
Blind and shade manufacturing
Surgical and medical instrument, laboratory and medical instrument
manufacturing
Surgical appliance and supplies manufacturing
Dental equipment and supplies manufacturing
Ophthalmic goods manufacturing
Dental laboratories manufacturing
Jewelry and silverware manufacturing
Sporting and athletic goods manufacturing
Doll, toy, and game manufacturing
Office supplies (except paper) manufacturing
Sign manufacturing
Gasket, packing, and sealing device manufacturing
Musical instrument manufacturing
All other miscellaneous manufacturing
Broom, brush, and mop manufacturing
Manufacturing
87
Texas Tech University, Hyojin Kim, August 2012
Groups of 21 Industrial Sectors Based on the ISIC (Continued)
Industry
Code
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
IMPLAN Description
Wholesale trade businesses
Retail Stores - Motor vehicle and parts
Retail Stores - Furniture and home furnishings
Retail Stores - Electronics and appliances
Retail Stores - Building material and garden supply
Retail Stores - Food and beverage
Retail Stores - Health and personal care
Retail Stores - Gasoline stations
Retail Stores - Clothing and clothing accessories
Retail Stores - Sporting goods, hobby, book and music
Retail Stores - General merchandise
Retail Stores – Miscellaneous
Retail Nonstores - Direct and electronic sales
Transport by air
Transport by rail
Transport by water
Transport by truck
Transit and ground passenger transportation
Transport by pipeline
Scenic and sightseeing transportation and support activities for
transportation
Couriers and messengers
Warehousing and storage
Newspaper publishers
Periodical publishers
Book publishers
Directory, mailing list, and other publishers
Software publishers
Motion picture and video industries
Sound recording industries
Radio and television broadcasting
Cable and other subscription programming
Internet publishing and broadcasting
Telecommunications
Data processing, hosting, ISP, web search portals and related services
Other information services
Monetary authorities and depository credit intermediation activities
Nondepository credit intermediation and related activities
Securities, commodity contracts, investments, and related activities
Insurance carriers
Insurance agencies, brokerages, and related activities
Funds, trusts, and other financial vehicles
88
ISIC
(21 sectors)
Wholesale and retail trade;
repair of motor vehicles
and motorcycles
Transportation and storage
Information and
communication
Financial and insurance
activities
Texas Tech University, Hyojin Kim, August 2012
Groups of 21 Industrial Sectors Based on the ISIC (Continued)
Industry
Code
360
361
362
363
364
365
366
382
383
384
385
386
387
388
389
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
391
392
393
394
395
396
397
398
399
400
401
IMPLAN Description
Real estate establishments
Imputed rental activity for owner-occupied dwellings
Automotive equipment rental and leasing
General and consumer goods rental except video tapes and discs
Video tape and disc rental
Commercial and industrial machinery and equipment rental and
leasing
Lessors of nonfinancial intangible assets
Employment services
Travel arrangement and reservation services
Office administrative services
Facilities support services
Business support services
Investigation and security services
Services to buildings and dwellings
Other support services
Legal services
Accounting, tax preparation, bookkeeping, and payroll services
Architectural, engineering, and related services
Specialized design services
Custom computer programming services
Computer systems design services
Other computer related services, including facilities management
Management, scientific, and technical consulting services
Environmental and other technical consulting services
Scientific research and development services
Advertising and related services
Photographic services
Veterinary services
All other miscellaneous professional, scientific, and technical services
Management of companies and enterprises
Private elementary and secondary schools
Private junior colleges, colleges, universities, and professional
schools
Other private educational services
Offices of physicians, dentists, and other health practitioners
Home health care services
Medical and diagnostic labs and outpatient and other ambulatory
care services
Private hospitals
Nursing and residential care facilities
Child day care services
Individual and family services
Community food, housing, and other relief services, including
rehabilitation services
89
ISIC
(21 sectors)
Real estate activities
Administrative and support
service activities
Professional, scientific and
technical activities
Education
Human health and social
work activities
Texas Tech University, Hyojin Kim, August 2012
Groups of 21 Industrial Sectors Based on the ISIC (Continued)
Industry
Code
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
425
427
IMPLAN Description
Performing arts companies
Spectator sports companies
Promoters of performing arts and sports and agents for public
figures
Independent artists, writers, and performers
Museums, historical sites, zoos, and parks
Fitness and recreational sports centers
Bowling centers
Amusement parks, arcades, and gambling industries
Other amusement and recreation industries
Hotels and motels, including casino hotels
Other accommodations
Food services and drinking places
Automotive repair and maintenance, except car washes
Car washes
Electronic and precision equipment repair and maintenance
Commercial and industrial machinery and equipment repair and
maintenance
Personal and household goods repair and maintenance
Personal care services
Death care services
Dry-cleaning and laundry services
Other personal services
Religious organizations
Grantmaking, giving, and social advocacy organizations
Civic, social, professional, and similar organizations
US Postal Service
ISIC
(21 sectors)
Arts, entertainment, and
recreation
Accommodation and food
service activities
Other service activities
Activities of households as
employers; undifferenticated
goods-and services-producing
activities of households for
own use
426
Private household operations
428
429
430
431
432
433
434
435
436
437
438
439
440
Federal electric utilities
Other Federal Government enterprises
State and local government passenger transit
State and local government electric utilities
Other state and local government enterprises
* Not an industry (Used and secondhand goods)
* Not an industry (Scrap)
* Not an industry (Rest of the world adjustment)
* Not an industry (Noncomparable foreign imports)
* Employment and payroll only (state & local govt, non-education)
* Employment and payroll only (state & local govt, education)
* Employment and payroll only (federal govt, non-military)
* Employment and payroll only (federal govt, military)
Public administration and
defense; compulsory social
security
Note: Out of 21 sectors based on the ISIC, the activities of extraterritorial organizations and bodies are
not applicable.
90
Texas Tech University, Hyojin Kim, August 2012
APPENDIX B
CATEGORY OF 21 INDUSTRIAL SECTORS BASED ON THE NAICS
91
Texas Tech University, Hyojin Kim, August 2012
Groups of 20 Industrial Sectors Based on the NAICS
Industry
Code
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
IMPLAN Description
Oilseed farming
Grain farming
Vegetable and melon farming
Fruit farming
Tree nut farming
Greenhouse, nursery, and floriculture production
Tobacco farming
Cotton farming
Sugarcane and sugar beet farming
All other crop farming
Cattle ranching and farming
Dairy cattle and milk production
Poultry and egg production
Animal production, except cattle and poultry and eggs
Forestry, forest products, and timber tract production
Commercial logging
Commercial Fishing
Commercial hunting and trapping
Support activities for agriculture and forestry
Extraction of oil and natural gas
Mining coal
Mining iron ore
Mining copper, nickel, lead, and zinc
Mining gold, silver, and other metal ore
Mining and quarrying stone
Mining and quarrying sand, gravel, clay, and ceramic and refractory minerals
Mining and quarrying other nonmetallic minerals
Drilling oil and gas wells
Support activities for oil and gas operations
Support activities for other mining
Electric power generation, transmission, and distribution
Natural gas distribution
Water, sewage and other treatment and delivery systems
Construction of new nonresidential commercial and health care structures
Construction of new nonresidential manufacturing structures
Construction of other new nonresidential structures
Construction of new residential permanent site single- and multi-family
structures
Construction of other new residential structures
Maintenance and repair construction of nonresidential structures
Maintenance and repair construction of residential structures
92
NAICS
(20 sectors)
Agriculture,
Forestry, Fishing,
and Hunting
Mining, Quarrying,
and Oil and Gas
Extraction
Utilities
Construction
Texas Tech University, Hyojin Kim, August 2012
Groups of 20 Industrial Sectors Based on the NAICS (Continued)
Industry
Code
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
IMPLAN Description
Dog and cat food manufacturing
Other animal food manufacturing
Flour milling and malt manufacturing
Wet corn milling
Soybean and other oilseed processing
Fats and oils refining and blending
Breakfast cereal manufacturing
Sugar cane mills and refining
Beet sugar manufacturing
Chocolate and confectionery manufacturing from cacao beans
Confectionery manufacturing from purchased chocolate
Nonchocolate confectionery manufacturing
Frozen food manufacturing
Fruit and vegetable canning, pickling, and drying
Fluid milk and butter manufacturing
Cheese manufacturing
Dry, condensed, and evaporated dairy product manufacturing
Ice cream and frozen dessert manufacturing
Animal (except poultry) slaughtering, rendering, and processing
Poultry processing
Seafood product preparation and packaging
Bread and bakery product manufacturing
Cookie, cracker, and pasta manufacturing
Tortilla manufacturing
Snack food manufacturing
Coffee and tea manufacturing
Flavoring syrup and concentrate manufacturing
Seasoning and dressing manufacturing
All other food manufacturing
Soft drink and ice manufacturing
Breweries
Wineries
Distilleries
Tobacco product manufacturing
Fiber, yarn, and thread mills
Broadwoven fabric mills
Narrow fabric mills and schiffli machine embroidery
Nonwoven fabric mills
Knit fabric mills
Textile and fabric finishing mills
93
NAICS
(20 sectors)
Manufacturing
Texas Tech University, Hyojin Kim, August 2012
Groups of 20 Industrial Sectors Based on the NAICS (Continued)
Industry
Code
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
IMPLAN Description
Fabric coating mills
Carpet and rug mills
Curtain and linen mills
Textile bag and canvas mills
All other textile product mills
Apparel knitting mills
Cut and sew apparel contractors
Men's and boys' cut and sew apparel manufacturing
Women's and girls' cut and sew apparel manufacturing
Other cut and sew apparel manufacturing
Apparel accessories and other apparel manufacturing
Leather and hide tanning and finishing
Footwear manufacturing
Other leather and allied product manufacturing
Sawmills and wood preservation
Veneer and plywood manufacturing
Engineered wood member and truss manufacturing
Reconstituted wood product manufacturing
Wood windows and doors and millwork manufacturing
Wood container and pallet manufacturing
Manufactured home (mobile home) manufacturing
Prefabricated wood building manufacturing
All other miscellaneous wood product manufacturing
Pulp mills
Paper mills
Paperboard Mills
Paperboard container manufacturing
Coated and laminated paper, packaging paper and plastics film manufacturing
All other paper bag and coated and treated paper manufacturing
Stationery product manufacturing
Sanitary paper product manufacturing
All other converted paper product manufacturing
Printing
Support activities for printing
Petroleum refineries
Asphalt paving mixture and block manufacturing
Asphalt shingle and coating materials manufacturing
Petroleum lubricating oil and grease manufacturing
All other petroleum and coal products manufacturing
Petrochemical manufacturing
94
NAICS
(20 sectors)
Manufacturing
Texas Tech University, Hyojin Kim, August 2012
Groups of 20 Industrial Sectors Based on the NAICS (Continued)
Industry
Code
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
IMPLAN Description
Industrial gas manufacturing
Synthetic dye and pigment manufacturing
Alkalies and chlorine manufacturing
Carbon black manufacturing
All other basic inorganic chemical manufacturing
Other basic organic chemical manufacturing
Plastics material and resin manufacturing
Synthetic rubber manufacturing
Artificial and synthetic fibers and filaments manufacturing
Fertilizer manufacturing
Pesticide and other agricultural chemical manufacturing
Medicinal and botanical manufacturing
Pharmaceutical preparation manufacturing
In-vitro diagnostic substance manufacturing
Biological product (except diagnostic) manufacturing
Paint and coating manufacturing
Adhesive manufacturing
Soap and cleaning compound manufacturing
Toilet preparation manufacturing
Printing ink manufacturing
All other chemical product and preparation manufacturing
Plastics packaging materials and unlaminated film and sheet manufacturing
Unlaminated plastics profile shape manufacturing
Plastics pipe and pipe fitting manufacturing
Laminated plastics plate, sheet (except packaging), and shape manufacturing
Polystyrene foam product manufacturing
Urethane and other foam product (except polystyrene) manufacturing
Plastics bottle manufacturing
Other plastics product manufacturing
Tire manufacturing
Rubber and plastics hoses and belting manufacturing
Other rubber product manufacturing
Pottery, ceramics, and plumbing fixture manufacturing
Brick, tile, and other structural clay product manufacturing
Clay and nonclay refractory manufacturing
Flat glass manufacturing
Other pressed and blown glass and glassware manufacturing
Glass container manufacturing
Glass product manufacturing made of purchased glass
Cement manufacturing
95
NAICS
(20 sectors)
Manufacturing
Texas Tech University, Hyojin Kim, August 2012
Groups of 20 Industrial Sectors Based on the NAICS (Continued)
Industry
Code
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
IMPLAN Description
Ready-mix concrete manufacturing
Concrete pipe, brick, and block manufacturing
Other concrete product manufacturing
Lime and gypsum product manufacturing
Abrasive product manufacturing
Cut stone and stone product manufacturing
Ground or treated mineral and earth manufacturing
Mineral wool manufacturing
Miscellaneous nonmetallic mineral product manufacturing
Iron and steel mills and ferroalloy manufacturing
Steel product manufacturing from purchased steel
Alumina refining and primary aluminum production
Secondary smelting and alloying of aluminum
Aluminum product manufacturing from purchased aluminum
Primary smelting and refining of copper
Primary smelting and refining of nonferrous metal (except copper and
aluminum)
Copper rolling, drawing, extruding and alloying
Nonferrous metal (except copper and aluminum) rolling, drawing, extruding
and alloying
Ferrous metal foundries
Nonferrous metal foundries
All other forging, stamping, and sintering
Custom roll forming
Crown and closure manufacturing and metal stamping
Cutlery, utensil, pot, and pan manufacturing
Handtool manufacturing
Plate work and fabricated structural product manufacturing
Ornamental and architectural metal products manufacturing
Power boiler and heat exchanger manufacturing
Metal tank (heavy gauge) manufacturing
Metal can, box, and other metal container (light gauge) manufacturing
Ammunition manufacturing
Arms, ordnance, and accessories manufacturing
Hardware manufacturing
Spring and wire product manufacturing
Machine shops
Turned product and screw, nut, and bolt manufacturing
Coating, engraving, heat treating and allied activities
Valve and fittings other than plumbing manufacturing
Plumbing fixture fitting and trim manufacturing
Ball and roller bearing manufacturing
96
NAICS
(20 sectors)
Manufacturing
Texas Tech University, Hyojin Kim, August 2012
Groups of 20 Industrial Sectors Based on the NAICS (Continued)
Industry
Code
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
IMPLAN Description
NAICS
(20 sectors)
Fabricated pipe and pipe fitting manufacturing
Other fabricated metal manufacturing
Farm machinery and equipment manufacturing
Lawn and garden equipment manufacturing
Construction machinery manufacturing
Mining and oil and gas field machinery manufacturing
Other industrial machinery manufacturing
Plastics and rubber industry machinery manufacturing
Semiconductor machinery manufacturing
Vending, commercial, industrial, and office machinery manufacturing
Optical instrument and lens manufacturing
Photographic and photocopying equipment manufacturing
Other commercial and service industry machinery manufacturing
Air purification and ventilation equipment manufacturing
Heating equipment (except warm air furnaces) manufacturing
Air conditioning, refrigeration, and warm air heating equipment manufacturing
Industrial mold manufacturing
Metal cutting and forming machine tool manufacturing
Special tool, die, jig, and fixture manufacturing
Cutting tool and machine tool accessory manufacturing
Rolling mill and other metalworking machinery manufacturing
Turbine and turbine generator set units manufacturing
Speed changer, industrial high-speed drive, and gear manufacturing
Mechanical power transmission equipment manufacturing
Other engine equipment manufacturing
Pump and pumping equipment manufacturing
Air and gas compressor manufacturing
Material handling equipment manufacturing
Power-driven handtool manufacturing
Other general purpose machinery manufacturing
Packaging machinery manufacturing
Industrial process furnace and oven manufacturing
Fluid power process machinery manufacturing
Electronic computer manufacturing
Computer storage device manufacturing
Computer terminals and other computer peripheral equipment manufacturing
Telephone apparatus manufacturing
Broadcast and wireless communications equipment manufacturing
Other communications equipment manufacturing
Audio and video equipment manufacturing
Manufacturing
97
Texas Tech University, Hyojin Kim, August 2012
Groups of 20 Industrial Sectors Based on the NAICS (Continued)
Industry
Code
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
IMPLAN Description
Electron tube manufacturing
Bare printed circuit board manufacturing
Semiconductor and related device manufacturing
Electronic capacitor, resistor, coil, transformer, and other inductor
manufacturing
Electronic connector manufacturing
Printed circuit assembly (electronic assembly) manufacturing
Other electronic component manufacturing
Electromedical and electrotherapeutic apparatus manufacturing
Search, detection, and navigation instruments manufacturing
Automatic environmental control manufacturing
Industrial process variable instruments manufacturing
Totalizing fluid meters and counting devices manufacturing
Electricity and signal testing instruments manufacturing
Analytical laboratory instrument manufacturing
Irradiation apparatus manufacturing
Watch, clock, and other measuring and controlling device manufacturing
Software, audio, and video media for reproduction
Magnetic and optical recording media manufacturing
Electric lamp bulb and part manufacturing
Lighting fixture manufacturing
Small electrical appliance manufacturing
Household cooking appliance manufacturing
Household refrigerator and home freezer manufacturing
Household laundry equipment manufacturing
Other major household appliance manufacturing
Power, distribution, and specialty transformer manufacturing
Motor and generator manufacturing
Switchgear and switchboard apparatus manufacturing
Relay and industrial control manufacturing
Storage battery manufacturing
Primary battery manufacturing
Communication and energy wire and cable manufacturing
Wiring device manufacturing
Carbon and graphite product manufacturing
All other miscellaneous electrical equipment and component manufacturing
Automobile manufacturing
Light truck and utility vehicle manufacturing
Heavy duty truck manufacturing
Motor vehicle body manufacturing
Truck trailer manufacturing
98
NAICS
(20 sectors)
Manufacturing
Texas Tech University, Hyojin Kim, August 2012
Groups of 20 Industrial Sectors Based on the NAICS (Continued)
Industry
Code
281
282
283
284
285
286
287
IMPLAN Description
306
307
308
309
310
311
312
313
314
315
316
317
318
Motor home manufacturing
Travel trailer and camper manufacturing
Motor vehicle parts manufacturing
Aircraft manufacturing
Aircraft engine and engine parts manufacturing
Other aircraft parts and auxiliary equipment manufacturing
Guided missile and space vehicle manufacturing
Propulsion units and parts for space vehicles and guided missiles
manufacturing
Railroad rolling stock manufacturing
Ship building and repairing
Boat building
Motorcycle, bicycle, and parts manufacturing
Military armored vehicle, tank, and tank component manufacturing
All other transportation equipment manufacturing
Wood kitchen cabinet and countertop manufacturing
Upholstered household furniture manufacturing
Nonupholstered wood household furniture manufacturing
Metal and other household furniture (except wood) manufacturing
Institutional furniture manufacturing
Wood television, radio, and sewing machine cabinet manufacturing
Office furniture and custom architectural woodwork and millwork
manufacturing
Showcase, partition, shelving, and locker manufacturing
Mattress manufacturing
Blind and shade manufacturing
Surgical and medical instrument, laboratory and medical instrument
manufacturing
Surgical appliance and supplies manufacturing
Dental equipment and supplies manufacturing
Ophthalmic goods manufacturing
Dental laboratories manufacturing
Jewelry and silverware manufacturing
Sporting and athletic goods manufacturing
Doll, toy, and game manufacturing
Office supplies (except paper) manufacturing
Sign manufacturing
Gasket, packing, and sealing device manufacturing
Musical instrument manufacturing
All other miscellaneous manufacturing
Broom, brush, and mop manufacturing
319
Wholesale trade businesses
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
NAICS
(20 sectors)
Manufacturing
Wholesale
Trade
99
Texas Tech University, Hyojin Kim, August 2012
Groups of 20 Industrial Sectors Based on the NAICS (Continued)
Industry
Code
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
IMPLAN Description
Retail Stores - Motor vehicle and parts
Retail Stores - Furniture and home furnishings
Retail Stores - Electronics and appliances
Retail Stores - Building material and garden supply
Retail Stores - Food and beverage
Retail Stores - Health and personal care
Retail Stores - Gasoline stations
Retail Stores - Clothing and clothing accessories
Retail Stores - Sporting goods, hobby, book and music
Retail Stores - General merchandise
Retail Stores – Miscellaneous
Retail Nonstores - Direct and electronic sales
Transport by air
Transport by rail
Transport by water
Transport by truck
Transit and ground passenger transportation
Transport by pipeline
Scenic and sightseeing transportation and support activities for transportation
Couriers and messengers
Warehousing and storage
Newspaper publishers
Periodical publishers
Book publishers
Directory, mailing list, and other publishers
Software publishers
Motion picture and video industries
Sound recording industries
Radio and television broadcasting
Cable and other subscription programming
Internet publishing and broadcasting
Telecommunications
Data processing, hosting, ISP, web search portals and related services
Other information services
Monetary authorities and depository credit intermediation activities
Nondepository credit intermediation and related activities
Securities, commodity contracts, investments, and related activities
Insurance carriers
Insurance agencies, brokerages, and related activities
Funds, trusts, and other financial vehicles
100
NAICS
(20 sectors)
Retail Trade
Transportation
and
Warehousing
Information
Finance and
Insurance
Texas Tech University, Hyojin Kim, August 2012
Groups of 20 Industrial Sectors Based on the NAICS (Continued)
Industry
Code
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
IMPLAN Description
Real estate establishments
Imputed rental activity for owner-occupied dwellings
Automotive equipment rental and leasing
General and consumer goods rental except video tapes and discs
Video tape and disc rental
Commercial and industrial machinery and equipment rental and leasing
Lessors of nonfinancial intangible assets
Legal services
Accounting, tax preparation, bookkeeping, and payroll services
Architectural, engineering, and related services
Specialized design services
Custom computer programming services
Computer systems design services
Other computer related services, including facilities management
Management, scientific, and technical consulting services
Environmental and other technical consulting services
Scientific research and development services
Advertising and related services
Photographic services
Veterinary services
All other miscellaneous professional, scientific, and technical services
381
Management of companies and enterprises
382
383
384
385
386
387
388
389
390
391
392
393
394
395
Employment services
Travel arrangement and reservation services
Office administrative services
Facilities support services
Business support services
Investigation and security services
Services to buildings and dwellings
Other support services
Waste management and remediation services
Private elementary and secondary schools
Private junior colleges, colleges, universities, and professional schools
Other private educational services
Offices of physicians, dentists, and other health practitioners
Home health care services
Medical and diagnostic labs and outpatient and other ambulatory care
services
Private hospitals
Nursing and residential care facilities
Child day care services
Individual and family services
Community food, housing, and other relief services, including rehabilitation
services
396
397
398
399
400
401
101
NAICS
(20 sectors)
Real Estate and
Rental and
Leasing
Professional,
Scientific, and
Technical
Services
Management of
Companies and
Enterprises
Administrative
and Support
and Waste
Management
and
Remediation
Services
Educational
Services
Health Care and
Social
Assistance
Texas Tech University, Hyojin Kim, August 2012
Groups of 20 Industrial Sectors Based on the NAICS (Continued)
Industry
Code
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
IMPLAN Description
Performing arts companies
Spectator sports companies
Promoters of performing arts and sports and agents for public figures
Independent artists, writers, and performers
Museums, historical sites, zoos, and parks
Fitness and recreational sports centers
Bowling centers
Amusement parks, arcades, and gambling industries
Other amusement and recreation industries
Hotels and motels, including casino hotels
Other accommodations
Food services and drinking places
Automotive repair and maintenance, except car washes
Car washes
Electronic and precision equipment repair and maintenance
Commercial and industrial machinery and equipment repair and maintenance
Personal and household goods repair and maintenance
Personal care services
Death care services
Dry-cleaning and laundry services
Other personal services
Religious organizations
Grantmaking, giving, and social advocacy organizations
Civic, social, professional, and similar organizations
Private household operations
US Postal Service
Federal electric utilities
Other Federal Government enterprises
State and local government passenger transit
State and local government electric utilities
Other state and local government enterprises
* Not an industry (Used and secondhand goods)
* Not an industry (Scrap)
* Not an industry (Rest of the world adjustment)
* Not an industry (Noncomparable foreign imports)
* Employment and payroll only (state & local govt, non-education)
* Employment and payroll only (state & local govt, education)
* Employment and payroll only (federal govt, non-military)
* Employment and payroll only (federal govt, military)
102
NAICS
(20 sectors)
Arts,
Entertainment,
and Recreation
Accommodation
and Food
Services
Other Services
(except Public
Administration)
Public
Administration
Texas Tech University, Hyojin Kim, August 2012
APPENDIX C
SETS OF MULTIPLIERS
103
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers
Industry
Code
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Description
Oilseed farming
Grain farming
Vegetable and melon farming
Fruit farming
Tree nut farming
Greenhouse, nursery, and
floriculture production
Tobacco farming
Cotton farming
Sugarcane and sugar beet farming
All other crop farming
Cattle ranching and farming
Dairy cattle and milk production
Poultry and egg production
Animal production, except cattle
and poultry and eggs
Forestry, forest products, and
timber tract production
Commercial logging
Commercial Fishing
Commercial hunting and trapping
Support activities for agriculture
and forestry
Extraction of oil and natural gas
Mining coal
Mining iron ore
Mining copper, nickel, lead, and
zinc
Mining gold, silver, and other
metal ore
Mining and quarrying stone
Mining and quarrying sand,
gravel, clay, and ceramic and
refractory minerals
Mining and quarrying other
nonmetallic minerals
Drilling oil and gas wells
Support activities for oil and gas
operations
Support activities for other
mining
Direct
Effects
1.000
1.000
1.000
1.000
1.000
Indirect
Effects
0.559
0.660
0.614
0.587
0.531
Induced
Effects
0.243
0.271
0.518
0.616
0.610
1.802
1.931
2.131
2.203
2.141
Type I
Multiplier
1.559
1.660
1.614
1.587
1.531
Type SAM
Multiplier
1.802
1.931
2.131
2.203
2.141
1.000
0.444
0.626
2.070
1.444
2.070
0.000
1.000
1.000
1.000
1.000
1.000
1.000
0.000
0.643
0.661
0.767
0.975
0.843
0.839
0.000
0.354
0.336
0.369
0.242
0.223
0.254
0.000
1.997
1.997
2.136
2.217
2.066
2.092
0.000
1.643
1.661
1.767
1.975
1.843
1.839
0.000
1.997
1.997
2.136
2.217
2.066
2.092
1.000
0.535
0.267
1.802
1.535
1.802
1.000
0.459
0.398
1.856
1.459
1.856
1.000
1.000
1.000
0.730
0.313
0.486
0.591
0.539
0.281
2.321
1.852
1.768
1.730
1.313
1.486
2.321
1.852
1.768
1.000
0.212
0.966
2.178
1.212
2.178
1.000
1.000
1.000
0.402
0.402
0.522
0.410
0.394
0.272
1.812
1.797
1.794
1.402
1.402
1.522
1.812
1.797
1.794
0.000
0.000
0.000
0.000
0.000
0.000
1.000
0.242
0.176
1.418
1.242
1.418
1.000
0.426
0.386
1.811
1.426
1.811
1.000
0.408
0.478
1.886
1.408
1.886
1.000
0.409
0.327
1.736
1.409
1.736
1.000
0.525
0.267
1.792
1.525
1.792
1.000
0.579
0.624
2.203
1.579
2.203
1.000
0.603
0.390
1.993
1.603
1.993
104
Total
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
Description
Electric power generation,
transmission, and distribution
Natural gas distribution
Water, sewage and other
treatment and delivery systems
Construction of new
nonresidential commercial and
health care structures
Construction of new
nonresidential manufacturing
structures
Construction of other new
nonresidential structures
Construction of new residential
permanent site single- and multifamily structures
Construction of other new
residential structures
Maintenance and repair
construction of nonresidential
structures
Maintenance and repair
construction of residential
structures
Dog and cat food manufacturing
Other animal food manufacturing
Flour milling and malt
manufacturing
Wet corn milling
Soybean and other oilseed
processing
Fats and oils refining and
blending
Breakfast cereal manufacturing
Sugar cane mills and refining
Beet sugar manufacturing
Chocolate and confectionery
manufacturing from cacao beans
Confectionery manufacturing
from purchased chocolate
Nonchocolate confectionery
manufacturing
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.310
0.309
1.619
1.310
1.619
1.000
0.509
0.268
1.777
1.509
1.777
1.000
0.401
0.534
1.934
1.401
1.934
1.000
0.500
0.625
2.125
1.500
2.125
1.000
0.405
0.627
2.032
1.405
2.032
1.000
0.580
0.629
2.209
1.580
2.209
1.000
0.623
0.515
2.138
1.623
2.138
1.000
0.592
0.526
2.118
1.592
2.118
1.000
0.484
0.638
2.122
1.484
2.122
1.000
0.470
0.603
2.073
1.470
2.073
1.000
1.000
0.630
0.645
0.197
0.193
1.827
1.838
1.630
1.645
1.827
1.838
1.000
0.769
0.301
2.070
1.769
2.070
1.000
0.732
0.256
1.988
1.732
1.988
1.000
0.526
0.164
1.690
1.526
1.690
1.000
0.393
0.121
1.513
1.393
1.513
1.000
1.000
0.000
0.460
0.729
0.000
0.231
0.332
0.000
1.691
2.061
0.000
1.460
1.729
0.000
1.691
2.061
0.000
1.000
0.667
0.225
1.892
1.667
1.892
1.000
0.593
0.302
1.895
1.593
1.895
1.000
0.622
0.289
1.911
1.622
1.911
105
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
Description
Frozen food manufacturing
Fruit and vegetable canning,
pickling, and drying
Fluid milk and butter
manufacturing
Cheese manufacturing
Dry, condensed, and evaporated
dairy product manufacturing
Ice cream and frozen dessert
manufacturing
Animal (except poultry)
slaughtering, rendering, and
processing
Poultry processing
Seafood product preparation and
packaging
Bread and bakery product
manufacturing
Cookie, cracker, and pasta
manufacturing
Tortilla manufacturing
Snack food manufacturing
Coffee and tea manufacturing
Flavoring syrup and concentrate
manufacturing
Seasoning and dressing
manufacturing
All other food manufacturing
Soft drink and ice manufacturing
Breweries
Wineries
Distilleries
Tobacco product manufacturing
Fiber, yarn, and thread mills
Broadwoven fabric mills
Narrow fabric mills and schiffli
machine embroidery
Nonwoven fabric mills
Knit fabric mills
Textile and fabric finishing mills
Fabric coating mills
Carpet and rug mills
Direct
Effects
1.000
Indirect
Effects
0.731
Induced
Effects
0.335
2.066
Type I
Multiplier
1.731
Type SAM
Multiplier
2.066
1.000
0.661
0.291
1.952
1.661
1.952
1.000
1.070
0.311
2.381
2.070
2.381
1.000
0.913
0.258
2.170
1.913
2.170
1.000
0.975
0.282
2.257
1.975
2.257
1.000
0.845
0.347
2.192
1.845
2.192
1.000
1.105
0.313
2.418
2.105
2.418
1.000
0.735
0.354
2.089
1.735
2.089
1.000
0.513
0.293
1.807
1.513
1.807
1.000
0.592
0.472
2.065
1.592
2.065
1.000
0.666
0.322
1.988
1.666
1.988
1.000
1.000
1.000
0.872
0.509
0.582
0.393
0.254
0.296
2.265
1.763
1.878
1.872
1.509
1.582
2.265
1.763
1.878
1.000
0.526
0.158
1.684
1.526
1.684
1.000
0.615
0.305
1.920
1.615
1.920
1.000
1.000
1.000
1.000
1.000
1.000
1.000
1.000
0.686
0.660
0.490
0.534
0.218
0.266
0.229
0.344
0.329
0.253
0.243
0.278
0.169
0.115
0.193
0.283
2.014
1.912
1.733
1.812
1.388
1.381
1.422
1.627
1.686
1.660
1.490
1.534
1.218
1.266
1.229
1.344
2.014
1.912
1.733
1.812
1.388
1.381
1.422
1.627
1.000
0.230
0.391
1.621
1.230
1.621
1.000
1.000
1.000
1.000
1.000
0.679
0.355
0.522
0.678
0.167
0.271
0.330
0.378
0.346
0.196
1.950
1.685
1.901
2.024
1.363
1.679
1.355
1.522
1.678
1.167
1.950
1.685
1.901
2.024
1.363
106
Total
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
Description
Curtain and linen mills
Textile bag and canvas mills
All other textile product mills
Apparel knitting mills
Cut and sew apparel contractors
Men's and boys' cut and sew
apparel manufacturing
Women's and girls' cut and sew
apparel manufacturing
Other cut and sew apparel
manufacturing
Apparel accessories and other
apparel manufacturing
Leather and hide tanning and
finishing
Footwear manufacturing
Other leather and allied product
manufacturing
Sawmills and wood preservation
Veneer and plywood
manufacturing
Engineered wood member and
truss manufacturing
Reconstituted wood product
manufacturing
Wood windows and doors and
millwork manufacturing
Wood container and pallet
manufacturing
Manufactured home (mobile
home) manufacturing
Prefabricated wood building
manufacturing
All other miscellaneous wood
product manufacturing
Pulp mills
Paper mills
Paperboard Mills
Paperboard container
manufacturing
Coated and laminated paper,
packaging paper and plastics film
manufacturing
Direct
Effects
1.000
1.000
1.000
1.000
1.000
Indirect
Effects
0.368
0.446
0.339
0.439
0.334
Induced
Effects
0.345
0.421
0.319
0.279
0.710
1.713
1.867
1.658
1.718
2.044
Type I
Multiplier
1.368
1.446
1.339
1.439
1.334
Type SAM
Multiplier
1.713
1.867
1.658
1.718
2.044
1.000
0.433
0.405
1.838
1.433
1.838
1.000
0.641
0.326
1.966
1.641
1.966
1.000
0.478
0.447
1.925
1.478
1.925
1.000
0.555
0.422
1.977
1.555
1.977
1.000
0.842
0.338
2.180
1.842
2.180
1.000
0.475
0.383
1.858
1.475
1.858
1.000
0.486
0.423
1.909
1.486
1.909
1.000
0.869
0.493
2.362
1.869
2.362
1.000
0.659
0.540
2.200
1.659
2.200
1.000
0.547
0.468
2.016
1.547
2.016
1.000
0.455
0.287
1.742
1.455
1.742
1.000
0.602
0.472
2.074
1.602
2.074
1.000
0.460
0.432
1.892
1.460
1.892
1.000
0.528
0.471
1.999
1.528
1.999
1.000
0.551
0.530
2.081
1.551
2.081
1.000
0.541
0.477
2.017
1.541
2.017
1.000
1.000
1.000
0.447
0.513
0.694
0.451
0.348
0.351
1.898
1.861
2.044
1.447
1.513
1.694
1.898
1.861
2.044
1.000
0.497
0.362
1.859
1.497
1.859
1.000
0.558
0.333
1.891
1.558
1.891
107
Total
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
Description
All other paper bag and coated
and treated paper
manufacturing
Stationery product
manufacturing
Sanitary paper product
manufacturing
All other converted paper
product manufacturing
Printing
Support activities for printing
Petroleum refineries
Asphalt paving mixture and
block manufacturing
Asphalt shingle and coating
materials manufacturing
Petroleum lubricating oil and
grease manufacturing
All other petroleum and coal
products manufacturing
Petrochemical manufacturing
Industrial gas manufacturing
Synthetic dye and pigment
manufacturing
Alkalies and chlorine
manufacturing
Carbon black manufacturing
All other basic inorganic
chemical manufacturing
Other basic organic chemical
manufacturing
Plastics material and resin
manufacturing
Synthetic rubber manufacturing
Artificial and synthetic fibers
and filaments manufacturing
Fertilizer manufacturing
Pesticide and other agricultural
chemical manufacturing
Medicinal and botanical
manufacturing
Pharmaceutical preparation
manufacturing
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.569
0.321
1.890
1.569
1.890
1.000
0.500
0.373
1.873
1.500
1.873
1.000
0.469
0.237
1.706
1.469
1.706
1.000
0.489
0.398
1.886
1.489
1.886
1.000
1.000
1.000
0.428
0.426
0.705
0.472
0.640
0.215
1.900
2.067
1.920
1.428
1.426
1.705
1.900
2.067
1.920
1.000
0.628
0.255
1.882
1.628
1.882
1.000
0.454
0.274
1.729
1.454
1.729
1.000
0.768
0.280
2.048
1.768
2.048
1.000
0.560
0.251
1.811
1.560
1.811
1.000
1.000
1.097
0.733
0.202
0.305
2.300
2.038
2.097
1.733
2.300
2.038
1.000
0.746
0.378
2.123
1.746
2.123
1.000
0.794
0.349
2.143
1.794
2.143
1.000
1.012
0.283
2.295
2.012
2.295
1.000
0.622
0.341
1.963
1.622
1.963
1.000
0.987
0.289
2.276
1.987
2.276
1.000
1.005
0.279
2.284
2.005
2.284
1.000
0.970
0.330
2.300
1.970
2.300
1.000
1.038
0.331
2.369
2.038
2.369
1.000
0.813
0.250
2.063
1.813
2.063
1.000
0.661
0.251
1.912
1.661
1.912
1.000
0.467
0.410
1.877
1.467
1.877
1.000
0.495
0.314
1.809
1.495
1.809
108
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
Description
In-vitro diagnostic substance
manufacturing
Biological product (except
diagnostic) manufacturing
Paint and coating manufacturing
Adhesive manufacturing
Soap and cleaning compound
manufacturing
Toilet preparation
manufacturing
Printing ink manufacturing
All other chemical product and
preparation manufacturing
Plastics packaging materials and
unlaminated film and sheet
manufacturing
Unlaminated plastics profile
shape manufacturing
Plastics pipe and pipe fitting
manufacturing
Laminated plastics plate, sheet
(except packaging), and shape
manufacturing
Polystyrene foam product
manufacturing
Urethane and other foam
product (except polystyrene)
manufacturing
Plastics bottle manufacturing
Other plastics product
manufacturing
Tire manufacturing
Rubber and plastics hoses and
belting manufacturing
Other rubber product
manufacturing
Pottery, ceramics, and plumbing
fixture manufacturing
Brick, tile, and other structural
clay product manufacturing
Clay and nonclay refractory
manufacturing
Flat glass manufacturing
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.600
0.430
2.031
1.600
2.031
1.000
0.586
0.381
1.967
1.586
1.967
1.000
1.000
0.858
0.882
0.330
0.350
2.188
2.232
1.858
1.882
2.188
2.232
1.000
0.559
0.263
1.822
1.559
1.822
1.000
0.563
0.294
1.857
1.563
1.857
1.000
0.844
0.412
2.256
1.844
2.256
1.000
0.771
0.376
2.147
1.771
2.147
1.000
0.974
0.293
2.267
1.974
2.267
1.000
0.951
0.331
2.281
1.951
2.281
1.000
1.015
0.293
2.308
2.015
2.308
1.000
0.646
0.356
2.002
1.646
2.002
1.000
0.800
0.299
2.099
1.800
2.099
1.000
0.673
0.315
1.988
1.673
1.988
1.000
0.945
0.288
2.233
1.945
2.233
1.000
0.821
0.383
2.204
1.821
2.204
1.000
0.664
0.345
2.009
1.664
2.009
1.000
0.673
0.372
2.045
1.673
2.045
1.000
0.624
0.384
2.008
1.624
2.008
1.000
0.488
0.516
2.004
1.488
2.004
1.000
0.459
0.466
1.925
1.459
1.925
1.000
0.611
0.372
1.983
1.611
1.983
1.000
0.664
0.385
2.049
1.664
2.049
109
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
Description
Other pressed and blown glass
and glassware manufacturing
Glass container manufacturing
Glass product manufacturing
made of purchased glass
Cement manufacturing
Ready-mix concrete
manufacturing
Concrete pipe, brick, and block
manufacturing
Other concrete product
manufacturing
Lime and gypsum product
manufacturing
Abrasive product manufacturing
Cut stone and stone product
manufacturing
Ground or treated mineral and
earth manufacturing
Mineral wool manufacturing
Miscellaneous nonmetallic
mineral product manufacturing
Iron and steel mills and
ferroalloy manufacturing
Steel product manufacturing
from purchased steel
Alumina refining and primary
aluminum production
Secondary smelting and alloying
of aluminum
Aluminum product
manufacturing from purchased
aluminum
Primary smelting and refining of
copper
Primary smelting and refining of
nonferrous metal (except
copper and aluminum)
Copper rolling, drawing,
extruding and alloying
Nonferrous metal (except
copper and aluminum) rolling,
drawing, extruding and alloying
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.488
0.493
1.980
1.488
1.980
1.000
0.553
0.407
1.959
1.553
1.959
1.000
0.546
0.442
1.989
1.546
1.989
1.000
0.644
0.350
1.993
1.644
1.993
1.000
0.728
0.439
2.167
1.728
2.167
1.000
0.561
0.448
2.008
1.561
2.008
1.000
0.566
0.463
2.029
1.566
2.029
1.000
0.662
0.357
2.019
1.662
2.019
1.000
0.548
0.375
1.924
1.548
1.924
1.000
0.517
0.573
2.090
1.517
2.090
1.000
0.507
0.358
1.865
1.507
1.865
1.000
0.644
0.393
2.037
1.644
2.037
1.000
0.731
0.376
2.107
1.731
2.107
1.000
0.671
0.275
1.946
1.671
1.946
1.000
0.651
0.291
1.941
1.651
1.941
1.000
0.560
0.274
1.834
1.560
1.834
1.000
0.554
0.235
1.789
1.554
1.789
1.000
0.476
0.237
1.713
1.476
1.713
1.000
0.584
0.102
1.686
1.584
1.686
1.000
0.322
0.179
1.502
1.322
1.502
1.000
0.619
0.183
1.802
1.619
1.802
1.000
0.423
0.213
1.636
1.423
1.636
110
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
Description
Ferrous metal foundries
Nonferrous metal foundries
All other forging, stamping, and
sintering
Custom roll forming
Crown and closure
manufacturing and metal
stamping
Cutlery, utensil, pot, and pan
manufacturing
Handtool manufacturing
Plate work and fabricated
structural product
manufacturing
Ornamental and architectural
metal products manufacturing
Power boiler and heat
exchanger manufacturing
Metal tank (heavy gauge)
manufacturing
Metal can, box, and other metal
container (light gauge)
manufacturing
Ammunition manufacturing
Arms, ordnance, and accessories
manufacturing
Hardware manufacturing
Spring and wire product
manufacturing
Machine shops
Turned product and screw, nut,
and bolt manufacturing
Coating, engraving, heat
treating and allied activities
Valve and fittings other than
plumbing manufacturing
Plumbing fixture fitting and trim
manufacturing
Ball and roller bearing
manufacturing
Fabricated pipe and pipe fitting
manufacturing
Direct
Effects
1.000
1.000
Indirect
Effects
0.503
0.464
Induced
Effects
0.430
0.383
1.933
1.847
Type I
Multiplier
1.503
1.464
Type SAM
Multiplier
1.933
1.847
1.000
0.530
0.433
1.963
1.530
1.963
1.000
0.595
0.288
1.883
1.595
1.883
1.000
0.520
0.389
1.909
1.520
1.909
1.000
0.398
0.373
1.771
1.398
1.771
1.000
0.460
0.411
1.871
1.460
1.871
1.000
0.532
0.383
1.915
1.532
1.915
1.000
0.528
0.420
1.948
1.528
1.948
1.000
0.458
0.402
1.860
1.458
1.860
1.000
0.537
0.426
1.963
1.537
1.963
1.000
0.549
0.259
1.808
1.549
1.808
1.000
0.308
0.353
1.660
1.308
1.660
1.000
0.324
0.337
1.661
1.324
1.661
1.000
0.437
0.352
1.789
1.437
1.789
1.000
0.449
0.371
1.820
1.449
1.820
1.000
0.425
0.551
1.976
1.425
1.976
1.000
0.390
0.414
1.804
1.390
1.804
1.000
0.507
0.408
1.914
1.507
1.914
1.000
0.374
0.362
1.736
1.374
1.736
1.000
0.457
0.265
1.721
1.457
1.721
1.000
0.333
0.316
1.649
1.333
1.649
1.000
0.492
0.345
1.837
1.492
1.837
111
Total
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
Description
Other fabricated metal
manufacturing
Farm machinery and equipment
manufacturing
Lawn and garden equipment
manufacturing
Construction machinery
manufacturing
Mining and oil and gas field
machinery manufacturing
Other industrial machinery
manufacturing
Plastics and rubber industry
machinery manufacturing
Semiconductor machinery
manufacturing
Vending, commercial, industrial,
and office machinery
manufacturing
Optical instrument and lens
manufacturing
Photographic and photocopying
equipment manufacturing
Other commercial and service
industry machinery
manufacturing
Air purification and ventilation
equipment manufacturing
Heating equipment (except
warm air furnaces)
manufacturing
Air conditioning, refrigeration,
and warm air heating
equipment manufacturing
Industrial mold manufacturing
Metal cutting and forming
machine tool manufacturing
Special tool, die, jig, and fixture
manufacturing
Cutting tool and machine tool
accessory manufacturing
Rolling mill and other
metalworking machinery
manufacturing
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.444
0.383
1.827
1.444
1.827
1.000
0.496
0.262
1.758
1.496
1.758
1.000
0.424
0.259
1.683
1.424
1.683
1.000
0.506
0.256
1.762
1.506
1.762
1.000
0.495
0.354
1.848
1.495
1.848
1.000
0.457
0.449
1.905
1.457
1.905
1.000
0.373
0.495
1.868
1.373
1.868
1.000
0.408
0.372
1.779
1.408
1.779
1.000
0.507
0.464
1.971
1.507
1.971
1.000
0.549
0.423
1.971
1.549
1.971
1.000
0.536
0.304
1.841
1.536
1.841
1.000
0.514
0.381
1.895
1.514
1.895
1.000
0.477
0.378
1.855
1.477
1.855
1.000
0.488
0.413
1.901
1.488
1.901
1.000
0.472
0.321
1.792
1.472
1.792
1.000
0.455
0.581
2.036
1.455
2.036
1.000
0.466
0.421
1.886
1.466
1.886
1.000
0.396
0.553
1.949
1.396
1.949
1.000
0.383
0.531
1.914
1.383
1.914
1.000
0.384
0.438
1.822
1.384
1.822
112
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
Description
Turbine and turbine generator
set units manufacturing
Speed changer, industrial highspeed drive, and gear
manufacturing
Mechanical power transmission
equipment manufacturing
Other engine equipment
manufacturing
Pump and pumping equipment
manufacturing
Air and gas compressor
manufacturing
Material handling equipment
manufacturing
Power-driven handtool
manufacturing
Other general purpose
machinery manufacturing
Packaging machinery
manufacturing
Industrial process furnace and
oven manufacturing
Fluid power process machinery
manufacturing
Electronic computer
manufacturing
Computer storage device
manufacturing
Computer terminals and other
computer peripheral equipment
manufacturing
Telephone apparatus
manufacturing
Broadcast and wireless
communications equipment
manufacturing
Other communications
equipment manufacturing
Audio and video equipment
manufacturing
Electron tube manufacturing
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.422
0.343
1.765
1.422
1.765
1.000
0.438
0.407
1.845
1.438
1.845
1.000
0.473
0.384
1.857
1.473
1.857
1.000
0.523
0.264
1.787
1.523
1.787
1.000
0.489
0.343
1.832
1.489
1.832
1.000
0.533
0.344
1.877
1.533
1.877
1.000
0.474
0.358
1.831
1.474
1.831
1.000
0.432
0.297
1.729
1.432
1.729
1.000
0.467
0.402
1.868
1.467
1.868
1.000
0.458
0.413
1.872
1.458
1.872
1.000
0.348
0.384
1.732
1.348
1.732
1.000
0.480
0.407
1.887
1.480
1.887
1.000
0.269
0.218
1.487
1.269
1.487
1.000
0.395
0.285
1.680
1.395
1.680
1.000
0.594
0.422
2.016
1.594
2.016
1.000
0.380
0.372
1.752
1.380
1.752
1.000
0.453
0.368
1.820
1.453
1.820
1.000
0.503
0.436
1.939
1.503
1.939
1.000
0.492
0.345
1.837
1.492
1.837
1.000
0.488
0.434
1.922
1.488
1.922
113
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
Description
Bare printed circuit board
manufacturing
Semiconductor and related
device manufacturing
Electronic capacitor, resistor,
coil, transformer, and other
inductor manufacturing
Electronic connector
manufacturing
Printed circuit assembly
(electronic assembly)
manufacturing
Other electronic component
manufacturing
Electromedical and
electrotherapeutic apparatus
manufacturing
Search, detection, and
navigation instruments
manufacturing
Automatic environmental
control manufacturing
Industrial process variable
instruments manufacturing
Totalizing fluid meters and
counting devices manufacturing
Electricity and signal testing
instruments manufacturing
Analytical laboratory instrument
manufacturing
Irradiation apparatus
manufacturing
Watch, clock, and other
measuring and controlling
device manufacturing
Software, audio, and video
media for reproduction
Magnetic and optical recording
media manufacturing
Electric lamp bulb and part
manufacturing
Lighting fixture manufacturing
Small electrical appliance
manufacturing
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.491
0.518
2.010
1.491
2.010
1.000
0.501
0.375
1.877
1.501
1.877
1.000
0.522
0.457
1.979
1.522
1.979
1.000
0.548
0.386
1.934
1.548
1.934
1.000
0.483
0.384
1.867
1.483
1.867
1.000
0.406
0.567
1.973
1.406
1.973
1.000
0.490
0.353
1.843
1.490
1.843
1.000
0.460
0.461
1.921
1.460
1.921
1.000
0.528
0.407
1.935
1.528
1.935
1.000
0.477
0.473
1.950
1.477
1.950
1.000
0.543
0.367
1.911
1.543
1.911
1.000
0.422
0.440
1.862
1.422
1.862
1.000
0.528
0.449
1.977
1.528
1.977
1.000
0.446
0.312
1.758
1.446
1.758
1.000
0.501
0.418
1.918
1.501
1.918
1.000
0.627
0.482
2.109
1.627
2.109
1.000
0.704
0.339
2.044
1.704
2.044
1.000
0.479
0.395
1.874
1.479
1.874
1.000
0.498
0.365
1.863
1.498
1.863
1.000
0.571
0.314
1.885
1.571
1.885
114
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
Description
Household cooking appliance
manufacturing
Household refrigerator and
home freezer manufacturing
Household laundry equipment
manufacturing
Other major household
appliance manufacturing
Power, distribution, and
specialty transformer
manufacturing
Motor and generator
manufacturing
Switchgear and switchboard
apparatus manufacturing
Relay and industrial control
manufacturing
Storage battery manufacturing
Primary battery manufacturing
Communication and energy wire
and cable manufacturing
Wiring device manufacturing
Carbon and graphite product
manufacturing
All other miscellaneous
electrical equipment and
component manufacturing
Automobile manufacturing
Light truck and utility vehicle
manufacturing
Heavy duty truck manufacturing
Motor vehicle body
manufacturing
Truck trailer manufacturing
Motor home manufacturing
Travel trailer and camper
manufacturing
Motor vehicle parts
manufacturing
Aircraft manufacturing
Aircraft engine and engine parts
manufacturing
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.555
0.267
1.822
1.555
1.822
1.000
0.660
0.296
1.956
1.660
1.956
0.000
0.000
0.000
0.000
0.000
0.000
1.000
0.668
0.261
1.929
1.668
1.929
1.000
0.537
0.300
1.838
1.537
1.838
1.000
0.423
0.305
1.728
1.423
1.728
1.000
0.481
0.341
1.822
1.481
1.822
1.000
0.462
0.370
1.832
1.462
1.832
1.000
1.000
0.453
0.407
0.280
0.204
1.733
1.611
1.453
1.407
1.733
1.611
1.000
0.619
0.277
1.896
1.619
1.896
1.000
0.596
0.348
1.944
1.596
1.944
1.000
0.625
0.345
1.971
1.625
1.971
1.000
0.439
0.444
1.882
1.439
1.882
1.000
0.374
0.185
1.559
1.374
1.559
1.000
0.395
0.177
1.572
1.395
1.572
1.000
0.419
0.210
1.629
1.419
1.629
1.000
0.394
0.350
1.744
1.394
1.744
1.000
1.000
0.484
0.420
0.353
0.274
1.836
1.694
1.484
1.420
1.836
1.694
1.000
0.535
0.368
1.903
1.535
1.903
1.000
0.510
0.332
1.842
1.510
1.842
1.000
0.172
0.302
1.475
1.172
1.475
1.000
0.226
0.188
1.413
1.226
1.413
115
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
Description
Other aircraft parts and auxiliary
equipment manufacturing
Guided missile and space vehicle
manufacturing
Propulsion units and parts for
space vehicles and guided
missiles manufacturing
Railroad rolling stock
manufacturing
Ship building and repairing
Boat building
Motorcycle, bicycle, and parts
manufacturing
Military armored vehicle, tank,
and tank component
manufacturing
All other transportation
equipment manufacturing
Wood kitchen cabinet and
countertop manufacturing
Upholstered household
furniture manufacturing
Nonupholstered wood
household furniture
manufacturing
Metal and other household
furniture (except wood)
manufacturing
Institutional furniture
manufacturing
Wood television, radio, and
sewing machine cabinet
manufacturing
Office furniture and custom
architectural woodwork and
millwork manufacturing
Showcase, partition, shelving,
and locker manufacturing
Mattress manufacturing
Blind and shade manufacturing
Surgical and medical instrument,
laboratory and medical
instrument manufacturing
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.296
0.430
1.725
1.296
1.725
1.000
0.400
0.496
1.896
1.400
1.896
1.000
0.321
0.487
1.807
1.321
1.807
1.000
0.576
0.283
1.859
1.576
1.859
1.000
1.000
0.476
0.547
0.464
0.383
1.940
1.930
1.476
1.547
1.940
1.930
1.000
0.535
0.243
1.778
1.535
1.778
1.000
0.613
0.266
1.880
1.613
1.880
1.000
0.572
0.254
1.826
1.572
1.826
1.000
0.684
0.565
2.249
1.684
2.249
1.000
0.423
0.429
1.852
1.423
1.852
1.000
0.492
0.426
1.917
1.492
1.917
1.000
0.689
0.360
2.049
1.689
2.049
1.000
0.478
0.395
1.874
1.478
1.874
1.000
0.415
0.346
1.762
1.415
1.762
1.000
0.485
0.528
2.013
1.485
2.013
1.000
0.573
0.430
2.003
1.573
2.003
1.000
1.000
0.579
0.602
0.326
0.426
1.905
2.028
1.579
1.602
1.905
2.028
1.000
0.493
0.408
1.901
1.493
1.901
116
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
Description
Surgical appliance and supplies
manufacturing
Dental equipment and supplies
manufacturing
Ophthalmic goods
manufacturing
Dental laboratories
manufacturing
Jewelry and silverware
manufacturing
Sporting and athletic goods
manufacturing
Doll, toy, and game
manufacturing
Office supplies (except paper)
manufacturing
Sign manufacturing
Gasket, packing, and sealing
device manufacturing
Musical instrument
manufacturing
All other miscellaneous
manufacturing
Broom, brush, and mop
manufacturing
Wholesale trade businesses
Retail Stores - Motor vehicle and
parts
Retail Stores - Furniture and
home furnishings
Retail Stores - Electronics and
appliances
Retail Stores - Building material
and garden supply
Retail Stores - Food and
beverage
Retail Stores - Health and
personal care
Retail Stores - Gasoline stations
Retail Stores - Clothing and
clothing accessories
Retail Stores - Sporting goods,
hobby, book and music
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.383
0.401
1.784
1.383
1.784
1.000
0.347
0.398
1.745
1.347
1.745
1.000
0.344
0.373
1.717
1.344
1.717
1.000
0.300
0.721
2.021
1.300
2.021
1.000
0.228
0.307
1.535
1.228
1.535
1.000
0.541
0.391
1.933
1.541
1.933
1.000
0.606
0.365
1.972
1.606
1.972
1.000
0.432
0.386
1.818
1.432
1.818
1.000
0.557
0.573
2.131
1.557
2.131
1.000
0.531
0.500
2.030
1.531
2.030
1.000
0.368
0.551
1.919
1.368
1.919
1.000
0.526
0.412
1.939
1.526
1.939
1.000
0.607
0.442
2.048
1.607
2.048
1.000
0.376
0.538
1.915
1.376
1.915
1.000
0.179
0.786
1.965
1.179
1.965
1.000
0.180
0.549
1.729
1.180
1.729
1.000
0.187
0.765
1.952
1.187
1.952
1.000
0.175
0.619
1.794
1.175
1.794
1.000
0.180
0.601
1.780
1.180
1.780
1.000
0.179
0.620
1.799
1.179
1.799
1.000
0.193
0.596
1.789
1.193
1.789
1.000
0.177
0.503
1.680
1.177
1.680
1.000
0.183
0.595
1.778
1.183
1.778
117
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
329
330
331
332
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
Description
Retail Stores - General
merchandise
Retail Stores - Miscellaneous
Retail Nonstores - Direct and
electronic sales
Transport by air
Transport by rail
Transport by water
Transport by truck
Transit and ground passenger
transportation
Transport by pipeline
Scenic and sightseeing
transportation and support
activities for transportation
Couriers and messengers
Warehousing and storage
Newspaper publishers
Periodical publishers
Book publishers
Directory, mailing list, and other
publishers
Software publishers
Motion picture and video
industries
Sound recording industries
Radio and television
broadcasting
Cable and other subscription
programming
Internet publishing and
broadcasting
Telecommunications
Data processing, hosting, ISP,
web search portals and related
services
Other information services
Monetary authorities and
depository credit intermediation
activities
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.174
0.601
1.776
1.174
1.776
1.000
0.196
0.639
1.834
1.196
1.834
1.000
0.187
0.357
1.543
1.187
1.543
1.000
1.000
1.000
1.000
0.543
0.704
0.596
0.673
0.457
0.506
0.432
0.576
2.000
2.210
2.028
2.250
1.543
1.704
1.596
1.673
2.000
2.210
2.028
2.250
1.000
0.338
0.664
2.001
1.338
2.001
1.000
0.542
0.614
2.156
1.542
2.156
1.000
0.304
0.809
2.113
1.304
2.113
1.000
1.000
1.000
1.000
1.000
0.390
0.393
0.377
0.625
0.579
0.497
0.671
0.582
0.476
0.425
1.887
2.063
1.959
2.102
2.004
1.390
1.393
1.377
1.625
1.579
1.887
2.063
1.959
2.102
2.004
1.000
0.540
0.411
1.951
1.540
1.951
1.000
0.506
0.454
1.959
1.506
1.959
1.000
0.290
0.430
1.720
1.290
1.720
1.000
0.722
0.305
2.026
1.722
2.026
1.000
0.512
0.858
2.370
1.512
2.370
1.000
0.617
0.716
2.332
1.617
2.332
1.000
0.395
0.710
2.106
1.395
2.106
1.000
0.518
0.347
1.866
1.518
1.866
1.000
0.369
0.420
1.789
1.369
1.789
1.000
0.330
0.901
2.231
1.330
2.231
1.000
0.587
0.474
2.062
1.587
2.062
118
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
Description
Nondepository credit
intermediation and related
activities
Securities, commodity contracts,
investments, and related
activities
Insurance carriers
Insurance agencies, brokerages,
and related activities
Funds, trusts, and other
financial vehicles
Real estate establishments
Imputed rental activity for
owner-occupied dwellings
Automotive equipment rental
and leasing
General and consumer goods
rental except video tapes and
discs
Video tape and disc rental
Commercial and industrial
machinery and equipment
rental and leasing
Lessors of nonfinancial
intangible assets
Legal services
Accounting, tax preparation,
bookkeeping, and payroll
services
Architectural, engineering, and
related services
Specialized design services
Custom computer programming
services
Computer systems design
services
Other computer related
services, including facilities
management
Management, scientific, and
technical consulting services
Environmental and other
technical consulting services
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.695
0.442
2.137
1.695
2.137
1.000
0.532
0.708
2.239
1.532
2.239
1.000
0.449
0.442
1.891
1.449
1.891
1.000
0.480
0.660
2.140
1.480
2.140
1.000
0.657
0.490
2.147
1.657
2.147
1.000
0.317
0.197
1.514
1.317
1.514
1.000
0.454
0.135
1.589
1.454
1.589
1.000
0.453
0.364
1.817
1.453
1.817
1.000
0.420
0.785
2.205
1.420
2.205
1.000
0.447
0.503
1.950
1.447
1.950
1.000
0.530
0.486
2.016
1.530
2.016
1.000
0.266
0.114
1.380
1.266
1.380
1.000
0.200
0.549
1.749
1.200
1.749
1.000
0.306
0.702
2.008
1.306
2.008
1.000
0.419
0.787
2.206
1.419
2.206
1.000
0.328
0.566
1.894
1.328
1.894
1.000
0.427
0.815
2.242
1.427
2.242
1.000
0.288
1.217
2.505
1.288
2.505
1.000
0.308
0.483
1.791
1.308
1.791
1.000
0.386
0.762
2.147
1.386
2.147
1.000
0.352
0.839
2.191
1.352
2.191
119
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399
400
Description
Scientific research and
development services
Advertising and related services
Photographic services
Veterinary services
All other miscellaneous
professional, scientific, and
technical services
Management of companies and
enterprises
Employment services
Travel arrangement and
reservation services
Office administrative services
Facilities support services
Business support services
Investigation and security
services
Services to buildings and
dwellings
Other support services
Waste management and
remediation services
Private elementary and
secondary schools
Private junior colleges, colleges,
universities, and professional
schools
Other private educational
services
Offices of physicians, dentists,
and other health practitioners
Home health care services
Medical and diagnostic labs and
outpatient and other
ambulatory care services
Private hospitals
Nursing and residential care
facilities
Child day care services
Individual and family services
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.514
0.745
2.259
1.514
2.259
1.000
1.000
1.000
0.377
0.470
0.389
0.573
0.489
0.693
1.950
1.959
2.082
1.377
1.470
1.389
1.950
1.959
2.082
1.000
0.313
0.398
1.712
1.313
1.712
1.000
0.454
0.690
2.144
1.454
2.144
1.000
0.207
0.794
2.001
1.207
2.001
1.000
0.491
0.560
2.052
1.491
2.052
1.000
1.000
1.000
0.434
0.520
0.423
0.815
0.620
0.778
2.248
2.140
2.201
1.434
1.520
1.423
2.248
2.140
2.201
1.000
0.333
0.774
2.107
1.333
2.107
1.000
0.586
0.552
2.137
1.586
2.137
1.000
0.399
0.505
1.904
1.399
1.904
1.000
0.526
0.492
2.018
1.526
2.018
1.000
0.347
0.808
2.155
1.347
2.155
1.000
0.515
0.682
2.197
1.515
2.197
1.000
0.380
0.647
2.026
1.380
2.026
1.000
0.367
0.763
2.130
1.367
2.130
1.000
0.401
0.753
2.154
1.401
2.154
1.000
0.490
0.624
2.114
1.490
2.114
1.000
0.489
0.663
2.152
1.489
2.152
1.000
0.438
0.729
2.167
1.438
2.167
1.000
1.000
0.471
0.344
0.675
0.816
2.146
2.161
1.471
1.344
2.146
2.161
120
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420
421
422
423
424
Description
Community food, housing, and
other relief services, including
rehabilitation services
Performing arts companies
Spectator sports companies
Promoters of performing arts
and sports and agents for public
figures
Independent artists, writers, and
performers
Museums, historical sites, zoos,
and parks
Fitness and recreational sports
centers
Bowling centers
Amusement parks, arcades, and
gambling industries
Other amusement and
recreation industries
Hotels and motels, including
casino hotels
Other accommodations
Food services and drinking
places
Automotive repair and
maintenance, except car washes
Car washes
Electronic and precision
equipment repair and
maintenance
Commercial and industrial
machinery and equipment
repair and maintenance
Personal and household goods
repair and maintenance
Personal care services
Death care services
Dry-cleaning and laundry
services
Other personal services
Religious organizations
Grantmaking, giving, and social
advocacy organizations
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.455
0.758
2.213
1.455
2.213
1.000
1.000
0.511
0.347
0.760
0.820
2.271
2.167
1.511
1.347
2.271
2.167
1.000
0.662
0.596
2.258
1.662
2.258
1.000
0.538
0.684
2.222
1.538
2.222
1.000
0.506
0.489
1.995
1.506
1.995
1.000
0.498
0.693
2.191
1.498
2.191
1.000
0.363
0.492
1.855
1.363
1.855
1.000
0.423
0.604
2.027
1.423
2.027
1.000
0.395
0.564
1.959
1.395
1.959
1.000
0.506
0.500
2.006
1.506
2.006
1.000
0.536
0.601
2.137
1.536
2.137
1.000
0.487
0.522
2.009
1.487
2.009
1.000
0.283
0.668
1.951
1.283
1.951
1.000
0.370
0.689
2.059
1.370
2.059
1.000
0.335
0.594
1.928
1.335
1.928
1.000
0.278
0.648
1.925
1.278
1.925
1.000
0.432
0.529
1.961
1.432
1.961
1.000
1.000
0.404
0.381
0.743
0.694
2.148
2.075
1.404
1.381
2.148
2.075
1.000
0.147
0.879
2.026
1.147
2.026
1.000
1.000
0.536
0.988
0.657
0.524
2.193
2.512
1.536
1.988
2.193
2.512
1.000
0.611
0.724
2.336
1.611
2.336
121
Texas Tech University, Hyojin Kim, August 2012
A Set of Output Multipliers (Continued)
Industry
Code
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
Description
Civic, social, professional, and
similar organizations
Private household operations
US Postal Service
Federal electric utilities
Other Federal Government
enterprises
State and local government
passenger transit
State and local government
electric utilities
Other state and local
government enterprises
* Not an industry (Used and
secondhand goods)
* Not an industry (Scrap)
* Not an industry (Rest of the
world adjustment)
* Not an industry
(Noncomparable foreign
imports)
* Employment and payroll only
(state & local govt, noneducation)
* Employment and payroll only
(state & local govt, education)
* Employment and payroll only
(federal govt, non-military)
* Employment and payroll only
(federal govt, military)
Direct
Effects
Indirect
Effects
Induced
Effects
Total
Type I
Multiplier
Type SAM
Multiplier
1.000
0.515
0.770
2.285
1.515
2.285
1.000
1.000
0.000
0.000
0.281
0.000
1.040
0.934
0.000
2.040
2.215
0.000
1.000
1.281
0.000
2.040
2.215
0.000
1.000
1.501
0.843
3.344
2.501
3.344
1.000
2.656
1.852
5.508
3.656
5.508
1.000
0.523
0.306
1.829
1.523
1.829
1.000
0.858
0.530
2.388
1.858
2.388
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
1.000
0.000
0.915
1.915
1.000
1.915
1.000
0.000
0.915
1.915
1.000
1.915
1.000
0.000
0.919
1.919
1.000
1.919
1.000
0.000
0.720
1.720
1.000
1.720
122