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Marine Policy 66 (2016) 39–49

Contents lists available at ScienceDirect

Marine Policy
journal homepage: www.elsevier.com/locate/marpol

Identifying channels of economic impacts: An inter-regional structural


path analysis for Alaska fisheries
Chang K. Seung
Alaska Fisheries Science Center, National Marine Fisheries Service, National Oceanic and Atmospheric Administration, 7600 Sand Point Way NE, Seattle, WA
98115-6349, USA

art ic l e i nf o a b s t r a c t

Article history: Alaska fisheries have strong spillover effects on economies of other states (especially the state of Wa-
Received 4 November 2015 shington) due to their dependence on imports from these other states. Several studies attempt to develop
Received in revised form inter-regional or multi-regional economic impact models to investigate these spillover effects, and cal-
11 January 2016
culate the multipliers for Alaska fisheries. However, these multipliers measure only total economic im-
Accepted 12 January 2016
pacts, failing to provide fishery managers with the information on how and along what channels these
total economic impacts are generated and transmitted throughout the regions. This paper uses an inter-
Jel Classification: regional structural path analysis (IRSPA) to identify the various channels (paths) through which the
R15 economic impacts of an initial shock to a seafood sector are transmitted, amplified, and spilled over to
Q22
other regions, within an inter-regional social accounting matrix (IRSAM) framework for two US regions –
Keywords: Alaska and the rest of US (RUS).
Alaska fisheries Published by Elsevier Ltd.
Inter-regional economic impacts
Social accounting matrix
Structural path analysis

1. Introduction billion) from non-Alaska US states accounted for about 31% of the
total value of production ($51 billion) in the state [20]. Therefore,
Much of the labor income generated in seafood-related in- there are additional impacts from exogenous shocks to fisheries or
dustries in Alaska flows out of the state because a large share of other industries in Alaska affecting those other states that are not
workers are nonresidents. In 2010, about 20% of total private and captured in a single-region economic impact model.
state and local government employment in Alaska was accounted Several studies have used an inter-regional or multi-regional
for by nonresidents. Consequently, about 14% of the total labor economic impact model such as social accounting matrix (SAM)
income produced in private industries and state and local gov- model [19,20] to capture these additional impacts of Alaska fish-
ernments in Alaska leaked out of the state. Outflows of labor in- eries, and calculated the inter- or multi-regional multipliers. For
come are the largest in (i) seafood processing (65%)1; (ii) agri- example, Seung [19] calculated the economic impacts of Alaska
culture, forestry, fishing, and hunting (43%, mostly fishing); (iii) fisheries for three regions in the US including Alaska, the West
mining (29%); (iv) accommodation (26%); (v) transportation and Coast, and the rest of US using multipliers from a three-region
warehousing (23%); and (vi) arts, entertainment, and recreation SAM model. However, these multipliers measure only total eco-
(20%) sectors [1]. nomic impacts, failing to provide fishery managers with the in-
In addition, a large amount of capital used in Alaska industries, formation on how and along what channels these total economic
including seafood, is owned by nonresidents. This means that impacts are generated and transmitted throughout the regions.
much of the capital income from these industries leaks to other The present study departs from these studies, and uses an in-
states. Many fishing vessels operating in waters off Alaska are ter-regional structural path analysis (IRSPA) to identify various
owned by non-Alaskan residents. Also, many of the goods and paths (channels) through which an initial shock to Alaska fisheries
services used by consumers and industries in Alaska are imported generates inter-regional impacts within an inter-regional social
from other states. In 2008, the total value of imports to Alaska ($16 accounting matrix (IRSAM) for two regions, Alaska and the rest of
US. Conventional economic impact analysis would provide the
E-mail address: Chang.Seung@noaa.gov fishery managers only a multiplier number measuring the overall
1
That is, 65% of labor income in this industry leaks out of the state. economic impacts of a seafood industry. As such, it would not

http://dx.doi.org/10.1016/j.marpol.2016.01.015
0308-597X/Published by Elsevier Ltd.
40 C.K. Seung / Marine Policy 66 (2016) 39–49

explain how and through what paths the initial shocks are trans- Y =(I − S )−1X (2)
mitted in generating the total economic impacts.2 Unlike the
⎡y ⎤ ⎡ ⎤ ⎡x ⎤
conventional multiplier analysis, the IRSPA can reveal the me- ⎢ 1⎥ ⎢ Z11z12 ⎥ 1⎥
where Y = ⎢ ⎥, S =⎢ ⎥, and X =⎢⎢ ⎥. Here S is matrix of direct
chanism of interactions among different economic sectors in the ⎢⎣ y2 ⎥⎦ ⎢⎣ z Z ⎥⎦
21 22 ⎣ x2 ⎦

two regions, and serve as a complementary tool to the conven- IRSAM coefficients and (I − S )−1 is the IRSAM multiplier matrix.
tional multiplier analysis in fishery managers' decision-making. In Here (I  S)  1 is called the IRSAM multiplier matrix or matrix of
the next section (Section 2), a description of an IRSAM model for IRSAM inverse coefficients. yr is a column vector for region r
Alaska fisheries is provided. Section 3 describes the IRSPA with a consisting of the following endogenous sub-vectors:
brief review of previous structural path analysis (SPA) studies. Ar ¼vector of regional industry output
Section 4 provides a description of data used, which is followed by Qr ¼vector of regional commodity output
Section 5 where results are discussed. Conclusions follow. Vr ¼ vector of total primary factor payments
IBTr ¼ indirect business tax payments
Hr ¼vector of total household income
2. Alaska fisheries IRSAM model SGr ¼total state and local government income or revenue
Zrr for region r is:
This section describes the 2008 IRSAM model used in this ⎡ 0 Mr 0 0 0 0 ⎤
study. It relies on Seung [19] except that this section describes a ⎢ ⎥
⎢ Ur 0 0 0 Cr GDr ⎥
two-region IRSAM while Seung [19] describes a three-region SAM. ⎢ Vr 0 0 0 0 0 ⎥
Readers are referred to King [6] for a more detailed discussion of a Z rr = ⎢ ⎥
SAM, Holland and Wyeth [4] for a regional level SAM model, and ⎢ IBTr 0 0 0 0 0 ⎥
⎢ 0 0 Fr 0 0 STRr ⎥
Round [17] and Roberts [15] for the structure of an IRSAM. The ⎢ ⎥
structure of the IRSAM used in this study is similar to that in ⎣ 0 0 SFr BTSr HTXr IGTr ⎦
Round [17] and Roberts [15], and is available upon request.
where:
In the IRSAM, each region has 61 endogenous accounts; thus,
Ur ¼absorption matrix
with two regions there are a total of 122 (61  2) endogenous ac-
Vr ¼matrix of primary factor payments coefficients
counts in the IRSAM. The 61 endogenous accounts for each region
IBTr ¼ matrix of indirect business tax coefficients
include 28 industries, 26 commodities, 3 value-added accounts
Mr ¼market share matrix
(labor income, capital income, and indirect business tax), 3 house- Fr ¼matrix of factor payment to household coefficients
hold accounts (low-, medium-, and high-income households), and a SFr ¼matrix of state and local factor tax coefficients
state and local government account. The 28 industries (Table 1) BTSr ¼matrix of state and local indirect business tax
include 14 seafood industries (11 fish harvesting industries and coefficients
3 seafood processing industries) and 14 non-seafood industries. The Cr ¼matrix of household consumption coefficients
26 commodities include 11 fish species (corresponding to the 11 HTXr ¼matrix of state and local government direct household
fish harvesting industries), one processed seafood (which is an ag- tax coefficients
gregation of the commodities produced in the three seafood pro- GDr ¼matrix of state and local government demand coefficients
cessing industries), and 14 non-seafood commodities (correspond- STRr ¼ matrix of state and local government transfer
ing to the 14 non-seafood industries). Major species (commodities) coefficients
in the model are Pacific cod, pollock, sablefish, crab, halibut, and IGTr ¼ matrix of intergovernmental transfers
salmon. The three processing industries are catcher-processors, zrs is:
motherships, and shorebased processors.
⎡0 0 0 0 0 0⎤
The IRSAM has 4 exogenous accounts, which include the federal ⎢ ⎥
government, capital (savings and investment), an account to handle ⎢ 0 IMrs 0 0 0 0⎥
international trade and financial flows, and an account balancing ⎢ 0 0 LKrs 0 0 0⎥
z rs = ⎢ ⎥
between the two regions and the rest of the world (ROW). ⎢0 0 0 0 0 0⎥
The IRSAM model is represented as: ⎢0 0 0 0 0 0⎥
⎢⎣ 0 0 0 0 0 0⎥⎦
⎡ y1 ⎤ ⎡ Z11z12 ⎤ ⎡ y1 ⎤ ⎡ x1 ⎤
⎢ y ⎥=⎢ ⎥ ⎢ ⎥+
⎣ 2 ⎦ ⎣ z21Z22 ⎦ ⎣ y2 ⎦ ⎢⎣ x2 ⎥⎦ (1) where IMrs is matrix of imports from region r to s and LKrs is
matrix of leakage of factor income from region s to region r. xr is a
where yr and xr denote the column vectors of endogenous and column vector consisting of the following exogenous sub-vectors:
exogenous accounts, respectively, for region r and Zrr is a sub- ear ¼vector of exogenous demand for regional industry output
matrix containing coefficients showing the intra-regional trans- eqr ¼ vector of exogenous demand for regional commodity
actions and zrs a submatrix containing coefficients showing inter- output
regional transactions (i.e., transactions between regions r and s, evr ¼vector of exogenous factor payments
r≠s). All the coefficients in Zrr and zrs matrices are derived by di- etr ¼ exogenous indirect business tax payments
viding the elements in the columns in the IRSAM by the column ehr ¼vector of exogenous federal transfers to households
totals. egr ¼federal transfers to state and local government.
Alternatively, Eq. (1) can be expressed as following: There are three non-zero exogenous demand vectors – eqr, ehr
and egr. The elements of eqr are components of final demand for
2
This may be an overstatement because conventional economic impact ana- commodities including Federal government demand, investment
lysis conducted using input–output (IO) and SAM models can also identify the demand, and export demand. The elements of ehr include Federal
upstream (i.e., backward linkage) sectors that will be impacted by a policy shock. government transfers to households and remittances from ROW to
Compared with conventional economic impact analysis, however, a structural path
households. The components of egr include Federal government
analysis goes one step further because it can investigate the concentration,
strength, and speed of various transmission channels of economic impacts transfers to state and local government. Injections of income into a
generated. region occur through final demand components in eqr and extra-
C.K. Seung / Marine Policy 66 (2016) 39–49 41

Table 1
Industry aggregation scheme for IRSAM model.

IMPLAN Sectors Industries in IRSAM

Sector 16 (Replaced with estimated data) Pacific whiting harvesting


Sector 16 (Replaced with estimated data) Atka mackerel harvesting
Sector 16 (Replaced with estimated data) Flatfish and rockfish harvesting
Sector 16 (Replaced with estimated data) Pacific cod harvesting
Sector 16 (Replaced with estimated data) Pollock harvesting
Sector 16 (Replaced with estimated data) Sablefish harvesting
Sector 16 (Replaced with estimated data) Crab harvesting
Sector 16 (Replaced with estimated data) Halibut harvesting
Sector 16 (Replaced with estimated data) Salmon harvesting
Sector 16 (Replaced with estimated data) Herring and other finfish harvesting
Sector 16 (Replaced with estimated data) Other fish harvesting
Sector 71 (Replaced with estimated data) Catcher-processor (processing only)
Sector 71 (Replaced with estimated data) Mothership
Sector 71 (Replaced with estimated data) Shorebased processor
Sectors 1–15, 17, and 18 Agriculture
Sector 19 Oil and gas extraction
Sectors 20–29 Other mining
Sectors 30–32, 495, and 498 Utilities
Sectors 33–45 Construction
Sectors 46–70, 72–84, 85–141, and 143–389 Other manufacturing
Sectors 142 and 396 Refined petroleum
Sector 390 Wholesale trade
Sectors 391–395, and 397–400 Transportation
Sectors 401–412 Retail
Sectors 413–424 Information
Sectors 425–436 Finance, insurance, real estate, renting, and leasing (FIRERL)
Sectors 437–494 Services
Sectors 496, 497, 499–506, and 507–509 Miscellaneousa

a
Miscellaneous includes all the other sectors not included in the sectors above, that is, government and
non-NAICS, state and local government services, and federal government services.

regional payment components in ehr and egr. Leakages include one study that used an SPA to investigate the economic impacts of
taxes paid to the Federal government, savings, and payments for fisheries within a single-region SAM framework. Seung [21] used
commodities imported from ROW. an SPA for the fisheries of the Southeast Alaska. The present study
is the first to conduct an IRSPA for fisheries. The description of the
SPA method below is based on [2,,10,13,21]. For details, see [2].
3. Inter-regional structural path analysis (IRSPA)
3.1. Basic definitions
Regional economists have used SPAs to identify the paths
through which the economic impacts of a certain policy for, or an Suppose that the coefficient matrix for an IRSAM is denoted by S,
exogenous shock to, an economic sector (origin) on another sector and the elements in the matrix are denoted by sji, where i and j denote
(destination) are generated and transmitted. SPA investigates the any two endogenous accounts in the IRSAM. The major difference
concentration, strength, and speed of various transmission channels between an SPA for a single-region model and an IRSPA is that i and j
or paths [13]. Concentration refers to the share of total economic could be any two endogenous accounts for the two regions, r and s, in
impacts from an exogenous shock that travel through one or more an IRSPA; in a SPA for a single-region model, the two accounts are
paths that connect different endogenous sectors in a SAM. Strength defined for only the single region. The elements of the resulting IRSAM
is measured by the size of the contribution of a path to the total multiplier matrix, (I S)  1, are denoted by mji. Any endogenous ac-
impacts represented by the SAM multipliers. Speed relates to the count in the IRSAM is considered a pole. Any two poles, i and j, are
share of the contribution of the path that connects directly from the connected by an arc starting from i and ending at j, called arc(i, j). An
origin to the destination without passing through any sector more element in S, sji, is the intensity of arc(i, j). A path is defined by a se-
than once. The larger the number of transactions among the sectors, quence of consecutive arcs. The length of a path is equal to its number
the longer time it is likely to take for the transmission of the effects of arcs. An elementary path is a path that does not pass through any
along the paths with higher lengths to materialize. pole more than once. A circuit is a path that starts from and ends at the
Lantner [7] first developed the SPA method, and utilized the same pole. Three kinds of influence can be measured between any
method within an input–output (IO) model. The first application of two endogenous accounts in an IRSAM: direct influence, total influ-
the method to a SAM model is found in [2]. Within a SAM model ence, and global influence. Let (i-j)p denote the path p from i to j. See
framework for the Republic of Korea, they used the analysis to Fig. 1 below, which shows the network of elementary paths and ad-
investigate the effects of specific production activities on other jacent circuits linking multiple poles.
production activities, factors of production, and different types of
households. Since then, economists have used the method for 3.2. Direct influence
different issues, including, for example, environmental issues (e.g.,
[24,8]), the role of different types of households in the economy of The direct influence of i on j, through an elementary path, is the
a rural area [16], differential effects of economic growth on labor change in the income (i.e., revenue) of account j (destination) in-
income by gender [13]. Parra and Wodon [13] and Kasumba and duced by a unitary increase in i (origin), where the incomes of all
Ruhiiga [5] review the previous SPA applications in detail. the other accounts except those along the elementary path are as-
The application of the method to fisheries is rare. There is only sumed to be constant. The direct influence from i to j is calculated
42 C.K. Seung / Marine Policy 66 (2016) 39–49

smk about 4.8 billion pounds of fish and shellfish with an ex-vessel value
of about $1.9 billion. Of this, groundfish accounted for 54.2% of ex-
vessel value, salmon 22.7%, halibut 7.4%, shellfish 14.6%, and herring
k m 1% [3]. Of the groundfish species caught in Alaska waters, pollock
has the highest commercial value. In 2012, pollock catch totaled
1.31 million metric tons, accounting for 60% of the total groundfish
ski skm sjm catch and 50% of ex-vessel value for groundfish, or $497 million [3]
The IRSAM in this study has two regions, Alaska and the rest of
skf sfm US (RUS). RUS includes all non-Alaska US states. Data for seafood
i f j industries in IMPLAN (IMpact analysis for PLANning; [11]) are not
reliable,3 and may produce biased results. Therefore, it was ne-
Fig. 1. Poles, elementary paths, and adjacent circuits (adapted from Fig. 4 in [10]).
cessary to use more reliable data for the seafood industries. The
by multiplying the intensities of all arcs forming the elementary Alaska fish harvesting and processing sectors were constructed
path. For example, the direct influence induced by a three-arc ele- independently using data from more reliable sources. Detailed
mentary path connecting poles i, k, m, and j in Fig. 1, is given by descriptions of the data assembly for the Alaska seafood industries
are found in [22]. The Alaska seafood industry data thus estimated
I(Di → j) p=ski smk sjm (3) are combined with 2004 IMPLAN non-seafood industry data to
generate Alaska SAM. See [18] for a more detailed description of
where k and m are the intermediate poles located along the ele-
how the data was assembled for Alaska SAM.
mentary path between poles i and j.
Data for RUS region was based on (i) the 2006 input-output (IO)
model for Pacific Coast Fisheries (IO-PAC) developed by the Northwest
3.3. Total influence Fisheries Science Center (NWFSC), (ii) 2008 NMFS landings data,4 and
(iii) 2008 IMPLAN data for non-Alaska states. IO-PAC is an IMPLAN-
Along an elementary path from i to j, there may be some effects based model augmented with fishery-related industry and commodity
transpiring through the circuits adjacent to the path. These circuits detail generated using data collected from economic surveys of vessels
will amplify the direct influence. Total influence includes both the
participating in West Coast fisheries [9]. Since the data years for these
direct influence and the indirect effects produced through the
data sets are different, these data were adjusted to 2008 levels using
adjacent circuits. Fig. 1 shows how these indirect effects occur.
the national GDP price deflator series5 in order to match the data
Consider an elementary path whose origin is i and the destination
years. Trade flows among the two regions were estimated using IM-
j. First, the influence from i to k and that from m to j are given by
PLAN version 3 based on 2008 data. This procedure required con-
the direct influences, ski and sjm, respectively.
structing additional IMPLAN models for the Alaska and RUS regions for
The connection between the two poles, k and m, needs further
2008, and executing the interregional commodity trade flow estima-
explanation. One way to go from k to m is to travel along the ele-
tion utility in IMPLAN version 3.
mentary path, arc(k,m). The direct influence along this path (k-m)
Additionally, it was necessary to estimate interregional non-
is smk. Another way to go from k to m is to travel around (i) the
commodity flows (factor income payments, transfer payments,
circuit between k and m and (ii) the circuit that links k and m
and financial flows) between the two regions, and with respect to
through f. After one round of feedback, the influence from k to m is
ROW. Data in the Alaska SAM regarding utilization of nonresident
given by smk 2skm+sfm skf smk 2 (skm+sfm skf ). After t rounds of feedback,
labor in fishing and other Alaska industries were useful for this
the influence is given by smk [smk (skm + sfm skf )]t smk (smk + sfm skf )t . Fi-
purpose. However, there were no data available to indicate origin
nally, any influence has to be transmitted from m to j. Based on a
or destination of interregional transfer payments and financial
geometric series argument, total influence is derived as:
flows. This study assumed simply that these interregional flows
I(Ti → j) p = ski smk sjm ⎡⎣ 1−smk ( skm + sfm skf ) ⎤⎦ =I(Di → j) p Mp.
−1 are zero. This assumption may serve to understate the inter-
(4)
regional linkages to some extent. For more details on preparing
Here, Mp=[1 − smk (skm + sfm skf )]−1 is called path multiplier. the data for the IRSAM, see [20] and [19].
Therefore, Eq. (4) implies that the total influence is equal to the
direct influence multiplied by the path multiplier.
5. Results
3.4. Global influence
This study presents results from IRSPA6 for two origin sectors
The global influence from i to j is simply given by element mji
from the IRSAM multiplier matrix, (I  S)  1, and is the sum of the 3
IMPLAN data are widely used for regional economic analysis of sub-regions in
total influences along all possible elementary paths connecting i
the US. However, when the data are used for analysis of fisheries, the data suffer
and j (not just the paths shown in Fig. 1): from some critical weaknesses. First, IMPLAN applies national-level production
n functions to regional industries, including fisheries. While this assumption may not
I(Gi → j) =mji = ∑ I(Ti → j) p be problematic for many regional industries, use of average production relation-
(5) ships may not accurately depict regional fish harvesting and processing technolo-
p=1
gies. Second, the employment and earnings of many crew members in the com-
where n is the number of all possible elementary paths going from mercial fishing sector are not included in the IMPLAN data because IMPLAN is
based on state unemployment insurance program data which exclude “uncovered”
i to j. The output multiplier for i, which is often calculated in
employees such as self-employed and casual or part-time workers.
conventional economic impact analysis, is simply given by 4
〈http://www.st.nmfs.noaa.gov/st1/commercial/landings/annual_landings.
J J
∑j = 1 I(Gi → j ) = ∑j = 1 mji where J is the total number of industries. html〉.
5
Another way of making this adjustment is to use nominal GDP ratios to in-
4. Data flate 2004 and 2006 to 2008 levels. Doing this may better adjust for both scale as
well as the price effects.
6
The SPA was implemented using a software called SimSIP SAM developed by
In 2012, about 52% by weight of the total US commercial fishing Juan Carlos Parra and Quentin Wodon at The World Bank. Parra and Wodon [14]
harvest came from the waters off Alaska [12,3]. This accounted for present procedures on how to implement SPA and other SAM-related analysis
C.K. Seung / Marine Policy 66 (2016) 39–49 43

(accounts) in the IRSAM, Alaska pollock commodity (AK-PLCK-C, i.e., global influence is accounted for by the total influence transpiring
raw pollock) and Alaska processed seafood commodity (AK-SFOOD- along the three-arc elementary path.
C).7 The destination sectors include industries, value added, The direct influence can also occur along more than three arcs
households, and state and local government, in both of the two between the origin and destination sectors. For example, the path
regions. Table 2 presents the IRSPA results for only the top ten denoted by AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-HI-HH-AK-
destination industries in the two regions when the origin is Alaska SERV-C-AK-SERV-A states that an increase in demand for AK-
pollock commodity. The top ten destination industries are de- PLCK-C produced by AK-PLCK-A results in an increase in labor
termined by the magnitude of the global influence. Table 3 reports income (AK-LAB) in Alaska, which is then distributed to Alaska
the results for top 16 destination industries in the two regions when high-income household (AK-HIGH-HH), and finally increases the
the origin is Alaska processed seafood commodity. Table 4 presents demand (by the high-income household) for Alaska service com-
the IRSPA results for the three value-added sectors for each of the modity (AK-SERV-C) produced by Alaska service industry (AK-
two regions while Table 5 reports the results for the three house- SERV-A). The TG ratio for this path is 16.8%.
hold sectors and the state and local government for each of the two The sum of all TG ratios from all the elementary paths con-
regions. Both tables (Tables 4 and 5) show results for each of two necting an origin sector and a destination sector equal 100%.
origin sectors. All these tables (Tables 2, 3, 4, and 5) shows only However, since this study presents only the impacts produced along
those impacts which are generated along a maximum of six arcs in a maximum of six arcs in the elementary paths and with TG ratios
the elementary paths and whose ratio of total influence to global larger than 3%, the sum for most of the destination sectors in the
influence (TG ratio)8 is larger than 3%. This impact threshold is used tables does not sum to 100%. For example, the sum of the TG ratios
in the presentation of the results because of space constraints. for Alaska service industry (destination) reported in Table 2 is equal
Acronyms are used in the text and the tables to denote en- to only 62.0% (17.3þ16.8þ11.5þ7.3þ4.9 þ4.3) because it excludes
dogenous sectors in the IRSAM. See Table A.1 in Appendix. In Table the impacts generated along the paths whose length is larger than
A.1, the acronyms used for industries end with “-A”. Although not six and the impacts whose TG ratios are smaller than 3%.
shown in Table A.1, the acronyms for commodities end with “-C”. In some cases, the impacts pass through industry sectors other
Also, the regional notations, AK- and RU-, are used to denote the than the destination sector. For example, the impacts represented
two regions. For example, AK-PLCK-A, RU-SERV-C, and AK-MED- by the five-arc path, AK-PLCK-C-AK-PLCK-A-AK-REFN-C-AK-
HH denote, respectively, Alaska pollock industry, RUS service REFN-A-AK-SERV-C-AK-SERV-A, are generated through an in-
commodity, and Alaska medium-income households. termediate industry sector (AK-REFN-A). This path states that har-
Table 2 shows that the global influence of Alaska pollock com- vest of Alaska pollock requires use of an intermediate input (AK-
modity on, for example, the Alaska service industry (mji from IRSAM REFN-C) produced by AK-REFN-A, which in turn purchases AK-
multiplier matrix, destination sector) is 0.209, which implies that a SERV-C. In other cases, the poles which the initial impacts pass
$1 million increase in demand for Alaska pollock commodity (i.e., through are value-added sectors and household sectors. When the
raw pollock) will result in a total increase in Alaska service industry destination sector is AK-SERV-A, the sum of TG ratios for the ele-
output of $209,000. Six of the top 10 industries which AK-PLCK-C mentary paths connecting the origin and the destination and pas-
has the largest global influence over are Alaska industries (AK-PLCK- sing through value-added (factor income) sectors and household
A, AK-OILG-A, AK-REFN-A, AK-FIRERL-A, AK-SERV-A, and AK-MIS- sectors (medium- and high-income households) is equal to 40.5%
CEL-A) while the other four industries are RUS industries (RU- (¼16.8þ11.5þ7.3þ 4.9), which accounts for a significant share of
OMAN-A, RU-FIRERL-A, RU-SERV-A, and RU-MISCEL-A). the global influence. Note that this number (40.5%) is the sum of
Results indicate that there are several elementary paths through only the TG ratios reported in the table. If the sum includes the TG
which the initial impacts are transmitted to the destination sector. ratios not shown in the table, the resulting sum could be much
Direct influence of Alaska pollock commodity (raw pollock) can larger than 40.5%. This indicates the important role of these value-
occur along a three-arc elementary path. For example, the three-arc added and household sectors in generating the economic impacts.
elementary path denoted by AK-PLCK-C-AK-PLCK-A-AK-SERV- Results indicate that the RUS industry that the Alaska pollock
C-AK-SERV-A states that production of Alaska pollock commodity commodity has the largest impacts (global influence) on is the RUS
(catch of pollock) by Alaska pollock harvesting industry (AK-PLCK- service industry (RU-SERV-A), as evidence by the largest global
C-AK-PLCK-A) requires purchase by Alaska pollock harvesting in- influence (0.363). The next two RUS industries that the origin
dustry of Alaska service commodity (AK-PLCK-A-AK-SERV-C), sector has the largest global influence over are RUS other manu-
which is produced by Alaska service industry (AK-SERV-C-AK- facturing industry (RU-OMAN-A) (0.323) and RUS FIRERL industry
SERV-A). In short, the three-arc elementary path represents direct (RU-FIRERL) (0.239). In the case of the RUS other manufacturing
expenditures made by Alaska pollock industry, in order to produce industry, the largest percentage (25.6%) of global influence is ac-
Alaska pollock commodity, on Alaska service commodity (which is counted for by the total influence generated along the four-arc
used as an intermediate input in Alaska pollock industry) produced path represented by AK-PLCK-C-AK-PLCK-A-AK-OMAN-C-RU-
by Alaska service industry. OMAN-C-RU-OMAN-A. This path states that the Alaska pollock
The direct influence for this three-arc path (0.028) is multiplied industry uses commodities from other manufacturing industry in
by the path multiplier of 1.310 that captures the effects occurring Alaska (AK-OMAN-A), but that, because the supply of the com-
in the adjacent circuits between the two poles (AK-PLCK-C and AK- modity produced in Alaska (AK-OMAN-C) cannot satisfy the de-
SERV-A). The resulting number (0.036 ¼0.028  1.310) is the total mand, the Alaska pollock industry imports the commodity from
influence. A larger path multiplier means that the effects gener- RUS, which is denoted by the arc, AK-OMAN-C-RU-OMAN-C, in
ated from the circuits between origin and destination poles are the four-arc path.
stronger than the effects with a smaller path multiplier. 17.3% of The increase in outputs of some RUS industries arising from
increased Alaska pollock catch occurs either (i) through an in-
crease in exports to Alaska of RUS commodities due to an increase
(footnote continued) in Alaska household income or (ii) through an increase in con-
using the software. sumption by RUS households of the RUS commodities due to an
7
For brevity, this section reports results for only two seafood sectors. The re-
sults for other origin sectors are available upon request.
increase in RUS household income. An example of (i) above is
8
TG ratio measures the relative contribution of an elementary path in gen- represented by the path, AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-
erating the impacts of an origin sector on a destination sector. HI-HH-AK-FIRERL-C-RU-FIRERL-C-RU-FIRERL-A. This path
44
Table 2
Results from IRSPA for Alaska pollock commodity (Origin¼ Alaska pollock commodity).

Destination Global influence Elementary paths Direct influence Path multiplier Total influence Total/Global (%)

AK-PLCK-A 0.983 AK-PLCK-C-AK-PLCK-A 0.983 1.000 0.983 100.0


AK-OILG-A 0.091 AK-PLCK-C-AK-PLCK-A-AK-REFN-C-AK-REFN-A-AK-OILG-C-AK-OILG-A 0.043 1.451 0.063 68.6
AK-PLCK-C-AK-PLCK-A-AK-REFN-C-AK-OILG-A 0.008 1.449 0.012 13.1
AK-REFN-A 0.125 AK-PLCK-C-AK-PLCK-A-AK-REFN-C-AK-REFN-A 0.093 1.186 0.110 88.5
AK-FIRERL-A 0.124 AK-PLCK-C-AK-PLCK-A-AK-FIRERL-C-AK-FIRERL-A 0.049 1.221 0.060 48.3
AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-HI-HH-AK-FIRERL-C-AK-FIRERL-A 0.005 1.583 0.009 6.9

C.K. Seung / Marine Policy 66 (2016) 39–49


AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-MED-HH-AK-FIRERL-C-AK-FIRERL-A 0.005 1.581 0.009 6.9
AK-SERV-A 0.209 AK-PLCK-C-AK-PLCK-A-AK-SERV-C-AK-SERV-A 0.028 1.310 0.036 17.3
AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-HI-HH-AK-SERV-C-AK-SERV-A 0.023 1.547 0.035 16.8
AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-MED-HH-AK-SERV-C-AK-SERV-A 0.016 1.548 0.024 11.5
AK-PLCK-C-AK-PLCK-A-AK-CAP-AK-HI-HH-AK-SERV-C-AK-SERV-A 0.010 1.473 0.015 7.3
AK-PLCK-C-AK-PLCK-A-AK-CAP-AK-MED-HH-AK-SERV-C-AK-SERV-A 0.007 1.451 0.010 4.9
AK-PLCK-C-AK-PLCK-A-AK-REFN-C-AK-REFN-A-AK-SERV-C-AK-SERV-A 0.006 1.547 0.009 4.3
AK-MISCEL-A 0.105 AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-HI-HH-AK-MISCEL-C-AK-MISCEL-A 0.012 1.382 0.017 16.2
AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-MED-HH-AK-MISCEL-C-AK-MISCEL-A 0.008 1.382 0.011 10.4
AK-PLCK-C-AK-PLCK-A-AK-CAP-AK-HI-HH-AK-MISCEL-C-AK-MISCEL-A 0.006 1.319 0.007 7.1
AK-PLCK-C-AK-PLCK-A-AK-CAP-AK-MED-HH-AK-MISCEL-C-AK-MISCEL-A 0.004 1.301 0.005 4.5
RU-OMAN-A 0.323 AK-PLCK-C-AK-PLCK-A-AK-OMAN-C-RU-OMAN-C-RU-OMAN-A 0.042 1.950 0.083 25.6
AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-HI-HH-AK-OMAN-C-RU-OMAN-C-RU-OMAN-A 0.006 2.592 0.016 5.1
AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-MED-HH-AK-OMAN-C-RU-OMAN-C-RU-OMAN-A 0.005 2.589 0.014 4.4
RU-FIRERL-A 0.239 AK-PLCK-C-AK-PLCK-A-AK-FIRERL-C-RU-FIRERL-C-RU-FIRERL-A 0.028 1.874 0.053 22.2
AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-HI-HH-AK-FIRERL-C-RU-FIRERL-C-RU-FIRERL-A 0.003 2.430 0.008 3.2
AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-MED-HH-AK-FIRERL-C-RU-FIRERL-C-RU-FIRERL-A 0.003 2.426 0.008 3.2
RU-SERV-A 0.363 AK-PLCK-C-AK-PLCK-A-AK-SERV-C-RU-SERV-C-RU-SERV-A 0.009 2.359 0.022 6.1
AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-HI-HH-AK-SERV-C-RU-SERV-C-RU-SERV-A 0.008 2.785 0.022 6.0
AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-MED-HH-AK-SERV-C-RU-SERV-C-RU-SERV-A 0.005 2.788 0.015 4.1
AK-PLCK-C-AK-PLCK-A-AK-OMAN-C-RU-OMAN-C-RU-OMAN-A-RU-SERV-C-RU-SERV-A 0.004 3.170 0.012 3.3
RU-MISCEL-A 0.119 AK-PLCK-C-AK-PLCK-A-AK-LAB-RU-LAB-RU-HI-HH-RU-MISCEL-C-RU-MISCEL-A 0.002 2.648 0.004 3.4

Note: the acronyms for industries used in this table end with “-A” and the acronyms for commodities end with “-C”. IBT¼ indirect business tax; LOW-HH¼ low-income households; MED-HH¼ medium-income households; HI-
HH¼ high-income households; SLG ¼state and local government.
Table 3
Results from IRSPA for Alaska processed seafood commodity (Origin ¼Alaska processed seafood commodity).

Destination Global influence Elementary paths Direct influence Path multiplier Total influence Total/Global (%)

AK-PLCK-A 0.106 AK-SFOOD-C-AK-CPP-A-AK-PLCK-C-AK-PLCK-A 0.050 1.001 0.050 47.3


AK-SFOOD-C-AK-SHOREP-A-AK-PLCK-C-AK-PLCK-A 0.046 1.001 0.046 43.8
AK-SFOOD-C-AK-MS-A-AK-PLCK-C-AK-PLCK-A 0.008 1.001 0.008 8.0
AK-SFOOD-C-AK-PLCK-A 0.001 1.001 0.001 0.9
AK-SALM-A 0.087 AK-SFOOD-C-AK-SHOREP-A-AK-SALM-C-AK-SALM-A 0.078 1.001 0.078 89.2
AK-SFOOD-C-AK-MS-A-AK-SALM-C-AK-SALM-A 0.007 1.001 0.007 7.8
AK-SFOOD-C-AK-SALM-A 0.001 1.001 0.001 1.5
AK-CPP-A 0.312 AK-SFOOD-C-AK-CPP-A 0.311 1.001 0.312 100.0
AK-MS-A 0.079 AK-SFOOD-C-AK-MS-A 0.079 1.001 0.079 100.0
AK-SHOREP-A 0.604 AK-SFOOD-C-AK-SHOREP-A 0.603 1.001 0.604 100.0
AK-OILG-A 0.071 AK-SFOOD-C-AK-CPP-A-AK-REFN-C-AK-REFN-A-AK-OILG-C-AK-OILG-A 0.011 1.452 0.016 22.7
AK-SFOOD-C-AK-MS-A-AK-REFN-C-AK-REFN-A-AK-OILG-C-AK-OILG-A 0.002 1.452 0.004 5.0
AK-SFOOD-C-AK-SHOREP-A-AK-REFN-C-AK-REFN-A-AK-OILG-C-AK-OILG-A 0.002 1.452 0.003 4.6
AK-SFOOD-C-AK-CPP-A-AK-REFN-C-AK-OILG-A 0.002 1.450 0.003 4.3
AK-REFN-A 0.091 AK-SFOOD-C-AK-CPP-A-AK-REFN-C-AK-REFN-A 0.024 1.187 0.028 31.0
AK-SFOOD-C-AK-MS-A-AK-REFN-C-AK-REFN-A 0.005 1.187 0.006 6.8
AK-SFOOD-C-AK-SHOREP-A-AK-REFN-C-AK-REFN-A 0.005 1.187 0.006 6.3

C.K. Seung / Marine Policy 66 (2016) 39–49


AK-SFOOD-C-AK-CPP-A-AK-PLCK-C-AK-PLCK-A-AK-REFN-C-AK-REFN-A 0.005 1.187 0.006 6.2
AK-SFOOD-C-AK-SHOREP-A-AK-Halibut-C-AK-Halibut-A-AK-REFN-C-AK-REFN-A 0.004 1.187 0.005 5.9
AK-SFOOD-C-AK-SHOREP-A-AK-PLCK-C-AK-PLCK-A-AK-REFN-C-AK-REFN-A 0.004 1.187 0.005 5.8
AK-SFOOD-C-AK-SHOREP-A-AK-SALM-C-AK-SALM-A-AK-REFN-C-AK-REFN-A 0.002 1.187 0.003 3.2
AK-SFOOD-C-AK-CPP-A-AK-PacCod-C-AK-PacCod-A-AK-REFN-C-AK-REFN-A 0.002 1.188 0.003 3.1
AK-RETAIL-A 0.097 AK-SFOOD-C-AK-SHOREP-A-AK-RETAIL-C-AK-RETAIL-A 0.018 1.075 0.019 19.7
AK-SFOOD-C-AK-CPP-A-AK-RETAIL-C-AK-RETAIL-A 0.012 1.075 0.013 13.7
AK-SFOOD-C-AK-SHOREP-A-AK-LAB-AK-HI-HH-AK-RETAIL-C-AK-RETAIL-A 0.004 1.375 0.005 5.3
AK-SFOOD-C-AK-SHOREP-A-AK-LAB-AK-MED-HH-AK-RETAIL-C-AK-RETAIL-A 0.003 1.372 0.004 4.5
AK-FIRERL-A 0.138 AK-SFOOD-C-AK-CPP-A-AK-FIRERL-C-AK-FIRERL-A 0.018 1.222 0.022 16.2
AK-SFOOD-C-AK-SHOREP-A-AK-FIRERL-C-AK-FIRERL-A 0.013 1.222 0.016 11.6
AK-SFOOD-C-AK-SHOREP-A-AK-SALM-C-AK-SALM-A-AK-FIRERL-C-AK-FIRERL-A 0.005 1.222 0.006 4.1
AK-SFOOD-C-AK-MS-A-AK-FIRERL-C-AK-FIRERL-A 0.004 1.222 0.005 3.5
AK-SFOOD-C-AK-SHOREP-A-AK-LAB-AK-HI-HH-AK-FIRERL-C-AK-FIRERL-A 0.003 1.583 0.004 3.1
AK-SFOOD-C-AK-SHOREP-A-AK-Halibut-C-AK-Halibut-A-AK-FIRERL-C-AK-FIRERL-A 0.003 1.222 0.004 3.1
AK-SFOOD-C-AK-SHOREP-A-AK-LAB-AK-MED-HH-AK-FIRERL-C-AK-FIRERL-A 0.003 1.581 0.004 3.1
AK-SERV-A 0.248 AK-SFOOD-C-AK-SHOREP-A-AK-SERV-C-AK-SERV-A 0.020 1.311 0.026 10.5
AK-SFOOD-C-AK-CPP-A-AK-SERV-C-AK-SERV-A 0.014 1.311 0.018 7.2
AK-SFOOD-C-AK-SHOREP-A-AK-LAB-AK-HI-HH-AK-SERV-C-AK-SERV-A 0.011 1.547 0.018 7.1
AK-SFOOD-C-AK-SHOREP-A-AK-LAB-AK-MED-HH-AK-SERV-C-AK-SERV-A 0.008 1.549 0.012 4.8
AK-SFOOD-C-AK-CPP-A-AK-LAB-AK-HI-HH-AK-SERV-C-AK-SERV-A 0.005 1.547 0.008 3.4
AK-MISCEL-A 0.114 AK-SFOOD-C-AK-SHOREP-A-AK-LAB-AK-HI-HH-AK-MISCEL-C-AK-MISCEL-A 0.006 1.382 0.009 7.5
AK-SFOOD-C-AK-SHOREP-A-AK-LAB-AK-MED-HH-AK-MISCEL-C-AK-MISCEL-A 0.004 1.382 0.005 4.8
AK-SFOOD-C-AK-CPP-A-AK-LAB-AK-HI-HH-AK-MISCEL-C-AK-MISCEL-A 0.003 1.382 0.004 3.6
RU-OMAN-A 0.361 AK-SFOOD-C-AK-SHOREP-A-AK-OMAN-C-RU-OMAN-C-RU-OMAN-A 0.025 1.951 0.048 13.3
AK-SFOOD-C-AK-CPP-A-AK-OMAN-C-RU-OMAN-C-RU-OMAN-A 0.009 1.951 0.017 4.8
RU-WHOLE-A 0.091 AK-SFOOD-C-AK-CPP-A-AK-WHOLE-C-RU-WHOLE-C-RU-WHOLE-A 0.006 1.171 0.007 7.4
AK-SFOOD-C-AK-SHOREP-A-AK-WHOLE-C-RU-WHOLE-C-RU-WHOLE-A 0.005 1.171 0.006 7.0
AK-SFOOD-C-AK-SHOREP-A-AK-OMAN-C-RU-OMAN-C-RU-OMAN-A-RU-WHOLE-C-RU-WHOLE-A 0.001 2.141 0.003 3.3
RU-RETAIL-A 0.080 AK-SFOOD-C-AK-SHOREP-A-AK-RETAIL-C-RU-RETAIL-C-RU-RETAIL-A 0.003 1.236 0.004 4.6
AK-SFOOD-C-AK-CPP-A-AK-RETAIL-C-RU-RETAIL-C-RU-RETAIL-A 0.002 1.236 0.003 3.2
RU-FIRERL-A 0.265 AK-SFOOD-C-AK-CPP-A-AK-FIRERL-C-RU-FIRERL-C-RU-FIRERL-A 0.011 1.876 0.020 7.5
AK-SFOOD-C-AK-SHOREP-A-AK-FIRERL-C-RU-FIRERL-C-RU-FIRERL-A 0.008 1.876 0.014 5.3
RU-SERV-A 0.409 AK-SFOOD-C-AK-SHOREP-A-AK-SERV-C-RU-SERV-C-RU-SERV-A 0.007 2.360 0.016 3.9

Note: the acronyms for industries used in this table end with “-A” and the acronyms for commodities end with “-C”. IBT¼ indirect business tax; LOW-HH¼ low-income households; MED-HH¼ medium-income households; HI-
HH¼ high-income households; SLG ¼state and local government.

45
46
Table 4
Results for value added.

Origin Destination Global influence Elementary paths Direct influence Path multiplier Total influence Total/Global (%)

AK-PLCK-C AK-LAB 0.533 AK-PLCK-C-AK-PLCK-A-AK-LAB 0.265 1.304 0.345 64.8


AK-PLCK-C-AK-PLCK-A-AK-RETAIL-C-AK-RETAIL-A-AK-LAB 0.014 1.338 0.019 3.5
AK-PLCK-C-AK-PLCK-A-AK-REFN-C-AK-REFN-A-AK-OILG-C-AK-OILG-A-AK-LAB 0.009 1.872 0.016 3.0
AK-PLCK-C AK-CAP 0.475 AK-PLCK-C-AK-PLCK-A-AK-CAP 0.292 1.070 0.313 65.9
AK-PLCK-C-AK-PLCK-A-AK-FIRERL-C-AK-FIRERL-A-AK-CAP 0.019 1.282 0.024 5.1
AK-PLCK-C-AK-PLCK-A-AK-REFN-C-AK-REFN-A-AK-OILG-C-AK-OILG-A-AK-CAP 0.013 1.546 0.020 4.2
AK-PLCK-C AK-IBT 0.047 AK-PLCK-C-AK-PLCK-A-AK-RETAIL-C-AK-RETAIL-A-AK-IBT 0.005 1.129 0.006 12.9
AK-PLCK-C-AK-PLCK-A-AK-REFN-C-AK-REFN-A-AK-OILG-C-AK-OILG-A-AK-IBT 0.002 1.540 0.004 8.1
AK-PLCK-C-AK-PLCK-A-AK-FIRERL-C-AK-FIRERL-A-AK-IBT 0.003 1.288 0.004 7.9

C.K. Seung / Marine Policy 66 (2016) 39–49


AK-PLCK-C-AK-PLCK-A-AK-REFN-C-AK-REFN-A-AK-IBT 0.003 1.260 0.003 6.7
AK-PLCK-C-AK-PLCK-A-AK-WHOLE-C-AK-WHOLE-A-AK-IBT 0.002 1.091 0.003 5.6
AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-HI-HH-AK-RETAIL-C-AK-RETAIL-A-AK-IBT 0.001 1.420 0.001 3.1
AK-PLCK-C RU-LAB 0.476 AK-PLCK-C-AK-PLCK-A-AK-LAB-RU-LAB 0.032 2.326 0.075 15.8
AK-PLCK-C-AK-PLCK-A-AK-OMAN-C-RU-OMAN-C-RU-OMAN-A-RU-LAB 0.007 3.035 0.020 4.2
AK-PLCK-C-AK-PLCK-A-AK-FIRERL-C-RU-FIRERL-C-RU-FIRERL-A-RU-LAB 0.006 2.898 0.019 3.9
AK-PLCK-C RU-CAP 0.329 AK-PLCK-C-AK-PLCK-A-AK-CAP-RU-CAP 0.027 1.311 0.035 10.6
AK-PLCK-C-AK-PLCK-A-AK-FIRERL-C-RU-FIRERL-C-RU-FIRERL-A-RU-CAP 0.010 2.120 0.021 6.4
AK-PLCK-C RU-IBT 0.059 AK-PLCK-C-AK-PLCK-A-AK-WHOLE-C-RU-WHOLE-C-RU-WHOLE-A-RU-IBT 0.003 1.321 0.003 5.8
AK-PLCK-C-AK-PLCK-A-AK-FIRERL-C-RU-FIRERL-C-RU-FIRERL-A-RU-IBT 0.002 2.078 0.003 5.4
AK-SFOOD-C AK-LAB 0.618 AK-SFOOD-C-AK-SHOREP-A-AK-LAB 0.132 1.304 0.173 27.9
AK-SFOOD-C-AK-CPP-A-AK-LAB 0.063 1.304 0.082 13.3
AK-SFOOD-C-AK-SHOREP-A-AK-SALM-C-AK-SALM-A-AK-LAB 0.034 1.304 0.044 7.2
AK-SFOOD-C AK-CAP 0.376 AK-SFOOD-C-AK-SHOREP-A-AK-CAP 0.047 1.071 0.050 13.3
AK-SFOOD-C-AK-CPP-A-AK-CAP 0.019 1.071 0.021 5.5
AK-SFOOD-C-AK-SHOREP-A-AK-SALM-C-AK-SALM-A-AK-CAP 0.018 1.071 0.019 5.0
AK-SFOOD-C-AK-CPP-A-AK-PLCK-C-AK-PLCK-A-AK-CAP 0.015 1.071 0.016 4.3
AK-SFOOD-C-AK-SHOREP-A-AK-Halibut-C-AK-Halibut-A-AK-CAP 0.014 1.071 0.015 4.1
AK-SFOOD-C-AK-SHOREP-A-AK-PLCK-C-AK-PLCK-A-AK-CAP 0.014 1.071 0.015 3.9
AK-SFOOD-C-AK-SHOREP-A-AK-Crab-C-AK-Crab-A-AK-CAP 0.012 1.071 0.012 3.3
AK-SFOOD-C AK-IBT 0.051 AK-SFOOD-C-AK-SHOREP-A-AK-RETAIL-C-AK-RETAIL-A-AK-IBT 0.002 1.130 0.003 5.5
AK-SFOOD-C-AK-CPP-A-AK-RETAIL-C-AK-RETAIL-A-AK-IBT 0.002 1.130 0.002 3.8
AK-SFOOD-C-AK-SHOREP-A-AK-IBT 0.002 1.067 0.002 3.2
AK-SFOOD-C RU-LAB 0.534 AK-SFOOD-C-AK-SHOREP-A-AK-LAB-RU-LAB 0.016 2.326 0.038 7.0
AK-SFOOD-C-AK-CPP-A-AK-LAB-RU-LAB 0.008 2.326 0.018 3.4

Note: the acronyms for industries used in this table end with “-A” and the acronyms for commodities end with “-C”. IBT¼ indirect business tax; LOW-HH¼ low-income households; MED-HH¼ medium-income households; HI-
HH¼ high-income households; SLG ¼state and local government.
Table 5
Results for institutional income.

Origin Destination Global influence Elementary paths Direct influence Path multiplier Total influence Total/Global (%)

AK-PLCK-C AK-LOW-HH 0.028 AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-LOW-HH 0.010 1.309 0.013 45.4


AK-PLCK-C-AK-PLCK-A-AK-CAP-AK-LOW-HH 0.004 1.087 0.005 17.2
AK-PLCK-C AK-MED-HH 0.240 AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-MED-HH 0.084 1.344 0.112 46.9
AK-PLCK-C-AK-PLCK-A-AK-CAP-AK-MED-HH 0.038 1.201 0.046 19.2
AK-PLCK-C AK-HI-HH 0.311 AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-HI-HH 0.112 1.345 0.150 48.3
AK-PLCK-C-AK-PLCK-A-AK-CAP-AK-HI-HH 0.051 1.238 0.063 20.4
AK-PLCK-C AK-SLG 0.085 AK-PLCK-C-AK-PLCK-A-AK-RETAIL-C-AK-RETAIL-A-AK-IBT-AK-SLG 0.005 1.825 0.009 10.5
AK-PLCK-C-AK-PLCK-A-AK-FIRERL-C-AK-FIRERL-A-AK-IBT-AK-SLG 0.003 2.082 0.005 6.4
AK-PLCK-C-AK-PLCK-A-AK-REFN-C-AK-REFN-A-AK-IBT-AK-SLG 0.002 2.039 0.005 5.5
AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-HI-HH-AK-SLG 0.002 2.222 0.004 4.7

C.K. Seung / Marine Policy 66 (2016) 39–49


AK-PLCK-C-AK-PLCK-A-AK-WHOLE-C-AK-WHOLE-A-AK-IBT-AK-SLG 0.002 1.765 0.004 4.5
AK-PLCK-C-AK-PLCK-A-AK-LAB-AK-SLG 0.002 2.164 0.004 4.2
AK-PLCK-C RU-LOW-HH 0.034 AK-PLCK-C-AK-PLCK-A-AK-LAB-RU-LAB-RU-LOW-HH 0.001 2.366 0.003 8.7
AK-PLCK-C RU-MED-HH 0.206 AK-PLCK-C-AK-PLCK-A-AK-LAB-RU-LAB-RU-MED-HH 0.012 2.419 0.028 13.6
AK-PLCK-C-AK-PLCK-A-AK-OMAN-C-RU-OMAN-C-RU-OMAN-A-RU-LAB-RU-MED-HH 0.002 3.134 0.007 3.6
AK-PLCK-C-AK-PLCK-A-AK-FIRERL-C-RU-FIRERL-C-RU-FIRERL-A-RU-LAB-RU-MED-HH 0.002 2.978 0.007 3.3
AK-PLCK-C RU-HI-HH 0.329 AK-PLCK-C-AK-PLCK-A-AK-LAB-RU-LAB-RU-HI-HH 0.016 2.536 0.040 12.1
AK-PLCK-C-AK-PLCK-A-AK-CAP-RU-CAP-RU-HI-HH 0.008 1.743 0.014 4.1
AK-PLCK-C-AK-PLCK-A-AK-OMAN-C-RU-OMAN-C-RU-OMAN-A-RU-LAB-RU-HI-HH 0.003 3.258 0.010 3.2
AK-PLCK-C RU-SLG 0.117 AK-PLCK-C-AK-PLCK-A-AK-WHOLE-C-RU-WHOLE-C-RU-WHOLE-A-RU-IBT-RU-SLG 0.002 2.241 0.005 4.4
AK-PLCK-C-AK-PLCK-A-AK-FIRERL-C-RU-FIRERL-C-RU-FIRERL-A-RU-IBT-RU-SLG 0.001 3.499 0.005 4.0
AK-SFOOD-C AK-LOW-HH 0.030 AK-SFOOD-C-AK-SHOREP-A-AK-LAB-AK-LOW-HH 0.005 1.310 0.006 21.4
AK-SFOOD-C-AK-CPP-A-AK-LAB-AK-LOW-HH 0.002 1.310 0.003 10.2
AK-SFOOD-C-AK-SHOREP-A-AK-SALM-C-AK-SALM-A-AK-LAB-AK-LOW-HH 0.001 1.310 0.002 5.5
AK-SFOOD-C AK-MED-HH 0.254 AK-SFOOD-C-AK-SHOREP-A-AK-LAB-AK-MED-HH 0.042 1.344 0.056 22.1
AK-SFOOD-C-AK-CPP-A-AK-LAB-AK-MED-HH 0.020 1.344 0.027 10.5
AK-SFOOD-C-AK-SHOREP-A-AK-SALM-C-AK-SALM-A-AK-LAB-AK-MED-HH 0.011 1.344 0.014 5.7
AK-SFOOD-C AK-HI-HH 0.330 AK-SFOOD-C-AK-SHOREP-A-AK-LAB-AK-HI-HH 0.056 1.346 0.075 22.8
AK-SFOOD-C-AK-CPP-A-AK-LAB-AK-HI-HH 0.027 1.346 0.036 10.8
AK-SFOOD-C-AK-SHOREP-A-AK-SALM-C-AK-SALM-A-AK-LAB-AK-HI-HH 0.014 1.346 0.019 5.8
AK-SFOOD-C-AK-SHOREP-A-AK-CAP-AK-HI-HH 0.008 1.239 0.010 3.1
AK-SFOOD-C AK-SLG 0.093 AK-SFOOD-C-AK-SHOREP-A-AK-RETAIL-C-AK-RETAIL-A-AK-IBT-AK-SLG 0.002 1.826 0.004 4.4
AK-SFOOD-C-AK-CPP-A-AK-RETAIL-C-AK-RETAIL-A-AK-IBT-AK-SLG 0.002 1.826 0.003 3.1
AK-SFOOD-C RU-LOW-HH 0.037 AK-SFOOD-C-AK-SHOREP-A-AK-LAB-RU-LAB-RU-LOW-HH 0.001 2.367 0.001 3.9
AK-SFOOD-C RU-MED-HH 0.230 AK-SFOOD-C-AK-SHOREP-A-AK-LAB-RU-LAB-RU-MED-HH 0.006 2.419 0.014 6.1
AK-SFOOD-C RU-HI-HH 0.364 AK-SFOOD-C-AK-SHOREP-A-AK-LAB-RU-LAB-RU-HI-HH 0.008 2.536 0.020 5.5

Note: the acronyms for industries used in this table end with “-A” and the acronyms for commodities end with “-C”. IBT¼ indirect business tax; LOW-HH¼ low-income households; MED-HH¼ medium-income households; HI-
HH¼ high-income households; SLG ¼state and local government.

47
48 C.K. Seung / Marine Policy 66 (2016) 39–49

shows that the increased Alaska labor income (AK-LAB) from in- processing industries import a large amount of non-seafood
creased catch of pollock in Alaska leads to an increase in income of commodities from RUS. The global influences are 0.361, 0.265, and
Alaska high-income households (AK-HI-HH), which in turn, leads 0.409, respectively, for the three RUS destination sectors, RUS
to an increase in demand for RUS FIRERL commodity. This results other manufacturing industry (RU-OMAN-A), RUS FIRERL industry
in an increase in output of RUS FIRERL industry. (RU-FIRERL-A), and RUS service industry (RU-SERV-A). These
An example of (ii) above is represented by the path, AK-PLCK-C- numbers are much larger than any global influence numbers for
AK-PLCK-A-AK-LAB-RU-LAB-RU-HI-HH-RU-MISCEL-C-RU- the non-seafood destination industries in Alaska. As in the case
MISCEL-A. This path shows that some of the labor income from AK- where the origin sector is Alaska pollock commodity, the role of
PLCK-A is distributed to Alaska labor provider (AK-LAB) and the re- low-income households is not critical in transmitting the impacts
maining labor income to RUS labor provider (RU-LAB), representing of the shock to seafood processing as evidenced by that sector not
non-Alaskan resident (RUS) labor income. The increase in RUS labor appearing in any elementary paths in Table 3. Another notable
income causes the income of RUS high-income households (RU-HI- result is that capital income does not play a noticeable role in
HH) to increase. This in turn induces an increased consumption by the generating the impacts of seafood processing (Table 3).
RUS high-income households of RUS miscellaneous commodity (RU- Table 4 clearly indicates the important role played by non-sea-
MISCEL-C) and RUS miscellaneous industry output. food industries in generating regional value added. For example,
A heavy dependence of the Alaska pollock industry on imports when the origin sector is the Alaska pollock commodity, the sum of
of RUS commodities is shown by the large global influences in the total influences on labor income (AK-LAB; destination sector)
Table 2. The global influences are 0.323, 0.239, and 0.363, re- transpiring through three non-seafood industries (Alaska retail in-
spectively, for RUS other manufacturing industry (RU-OMAN-A), dustry, Alaska refined oil industry, and Alaska oil and gas industry)
RUS FIRERL industry (RU-FIRERL-A), and RUS service industry (RU- is about 6.5% (¼3.5%þ 3.0%) of the global influence. Similarly, the
SERV-A). These numbers are much larger than most of the global sum of the total influences of the origin sector (AK-PLCK-C) on ca-
influence numbers for the destination industries in Alaska. For pital income (AK-CAP; destination sector) occurring through three
example, the global influence number for RU-SERV-A (0.363) is non-seafood industries (AK-FIRERL-A, AK-REFN-A, and AK-OILG-A)
makes up as large as 9.3% (¼5.1þ 4.2) of the global influence.
much larger than the number for AK-SERV-A (0.209).
The global influence of the Alaska pollock commodity on RUS
There are many elementary paths that include household sectors
value added is generated either through direct leakage of value ad-
as intermediate poles between the origin and destination sectors
ded from Alaska to RUS (e.g., AK-PLCK-C-AK-PLCK-A-AK-LAB-
(Table 2). In case of the Alaska service industry as a destination sector,
RU-LAB) or through Alaska's imports of RUS commodities (e.g., AK-
for example, four of the six elementary paths reported in the table
PLCK-C-AK-PLCK-A-AK-OMAN-C-RU-OMAN-C-RU-OMAN-A-
have a household sector as an intermediate pole. This indicates that
RU-LAB). Strong inter-regional impacts of Alaska pollock commodity
the household sectors (especially medium- and high-income house-
on RUS value added are shown by the fact that the sum of the global
hold sectors) play an important role in transmitting the economic
influences on RUS value added sectors (0.865¼0.476þ 0.329þ0.059)
impacts. Low-income households do not show up in the table as an
is as much as 82% of the sum of the global influences on Alaska value
intermediate pole in Table 2, which implies that the household sector
added (1.055¼0.533þ0.475þ0.047).
does not play a critical role in transmitting the impacts.
Strong impacts of the Alaska pollock commodity on RUS
Although not reported in any table, the Alaska output multi-
household income are shown in Table 5. In fact, the global influ-
plier for Alaska pollock commodity, which measures the increase
ences of Alaska pollock commodity on some RUS household sec-
in the output of all Alaska industries combined due to a $1 in-
tors are larger than the influences on Alaska households. For ex-
crease in demand for Alaska raw pollock, is calculated to be 1.882.
ample, the global influence of the Alaska pollock commodity on
Similarly, the RUS output multiplier for Alaska pollock commodity, RUS high-income households (0.329) is larger than its influence on
which measures the increase in the total output of all RUS in- Alaska high-income households (0.311).
dustries from a $1 increase in demand for Alaska raw pollock, is
calculated to be 1.444.9 Conventional economic impact analysis
would provide the fishery managers only the multiplier numbers 6. Conclusion
such as these two numbers (1.882 and 1.444) and an element in
the IRSAM multiplier matrix (e.g., 0.983 in the second row and the Previous studies (e.g., [20,19]) investigated the inter-regional
second column in Table 2). As such, it would not explain how and economic impacts of Alaska fisheries, calculating inter-regional
through what paths the initial shocks are transmitted in generat- multipliers. However, these multipliers are a black box [23] if
ing the total economic impacts. The information on these paths is provided without complementary information, and cannot iden-
provided only by an SPA. tify the structural and behavioral mechanism that produces these
An increase in Alaska processed seafood (AK-SFOOD-C) has the multipliers. Extending an earlier study [21], the present study
largest global influence on two fish harvesting industries (AK- opens the black box by conducting an IRSPA within an IRSAM
PLCK-A and AK-SALM-A), reflecting the fact that much of raw fish framework, and provides information on how and through what
used in the processing is from the two harvesting industries (Ta- paths the economic impacts of an initial shock to a seafood sector
ble 3). As in the case above where the origin sector is Alaska are transmitted, amplified, and spilled over to other regions.
pollock commodity, the results in Table 3 reveal that, in order to Fishery managers need to know the economic impacts, occur-
process seafood in Alaska (AK-SFOOD-C), the three Alaska ring in the fishery-dependent regions, of a potential change, for
example, in the total allowable catch for a species from unfavor-
9 able stock assessment for the species or the impacts of an exo-
The Alaska output multiplier (1.882) is supposed to be the same as the sum of
all global influence numbers for the Alaska destination industries. However, the genous reduction in harvest of the species from natural disasters.
sum of the global influence numbers in the second column in Table 2 is only 1.637 In this case, if the fishery managers are given only conventional
( ¼0.983 þ 0.091 þ0.125þ0.124þ 0.209 þ0.105). Similarly, the RUS output multi- multipliers for the species without some complementary in-
plier (1.444) is supposed to be the same as the sum of all global influence numbers formation about the structural and behavioral mechanism, they
for the RUS destination industries. However, the table shows that the sum is only
1.044 ( ¼0.323 þ0.239 þ 0.363 þ 0.119). These discrepancies occur because the table
cannot place confidence on the multipliers that will be used in
reports only the results for a maximum of six arcs and a maximum value of 3% for their decision-making. They may hesitate to accept blindly the
the TG ratios. multiplier numbers without such complementary information.
C.K. Seung / Marine Policy 66 (2016) 39–49 49

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Value added
Labor income LAB
Capital income CAP
Indirect business tax IBT
Institutions
Low-income households LOW-HH
Medium-income households MED-HH
High-income households HI-HH
State and local government SLG

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