sery products, and 1.329 for agricultural services. If the output increases 

 by $1,000 dollars in the fruits and nuts industry, then direct and indirect 

 income will rise to $1,397. 



Employment Multipliers 



These multipliers are obtained by dividing the total employment in all 

 sectors of the economy by direct employment per dollar of output. Field crops 

 have the largest employment multiplier. When demand for agricultural commodi- 

 ties increases by one dollar, the impact on employment is a multiplier of 

 1.749 for field crops, 1.353 for fruits and nuts, 1.308 for livestock pro- 

 ducts, 1.253 for vegetables and sugar, 1.220 for forest and nursery products, 

 and 1.242 for agricultural services. 



Export Multipliers 



An increase in employment in basic industry will have a secondary impact 

 on nonbasic industries. This secondary impact is known as the export multi- 

 plier. The rate of growth is determined by its function as an "exporter" out- 

 side the region. Export of products from Northwest Florida channel outside 

 dollars into the region and trigger chain reactions of additional economic 

 activity. The process of each dollar being re-spent and causing new impacts 

 is not infinite. At each round of the spending process, some dollars leak out 

 of the economy in the form of savings, taxes, profits to stockholders outside 

 the region, and as payments for imported goods and services. The process as- 

 sociated with each additional dollar of sales is called the "multiplier" 

 effect. Multipliers are useful to predict economic expansion due to growth in 

 sectors of the economy. 



According to Loehman and Hsiao (1979), there are various economic indi- 

 cators which can be used to analyze the role of economic sectors in the 

 economy. The various aggregate indicators and multipliers relate to different 

 aspects of economic welfare. A sector with low output multipliers may be 

 important to the economy because of large numbers of people employed. On the 

 other hand, a sector with low employment may have high multipliers and hence 

 be important in an expansionary sense. 



Table 14. Agriculture output multipliers (Loehman and Hsiao 1979). 



Commodity Output multipl ier 



Agricultural services 1.538 



Livestock products 1.477 



Field crops 1.470 



Vegetables and sugar 1.379 



Fruits and nuts 1.368 



Forest and nursery 1.267 



127 



