The contribution of forestry to Virginia's economy: an application of input-output analysis

This study develops a model to measure the overall contribution of forestry to an economy, and applies the model to Virginia in order to determine the impact of the forestry sector upon the state’s economy.

Following a review of the methods used by economists to analyze the contribution of forestry to a region, the integrated model approach was adopted and a model developed for Virginia. The model consists of several criteria, including measures of economic activity, work force characteristics, productivity, sector growth, and secondary effects measured through input-output analysis.

Forestry was found to be one of the leading manufacturing industries in the state, accounting for almost three percent of the gross state product. The industry is particularly strong with respect to its pulp and paper sector. The solid wood product sector makes up the largest number of firms, and also has high secondary effects. The furniture sector is less important but still contributes significantly to the economy. The pulp and paper sector, with the smallest number of firms, has a very large impact on the state, from high economic activity to high secondary effects.