Economic Contributions of North Carolina, United States, Forest-Sector Foreign Exports: An Export-Chain Perspective

Abstract

Abstract North Carolina forest-sector foreign exports were quantified by applying an origin-of-production methodology that awarded the state a portion of national export value corresponding to its share of a US forest industry. A US$1.945 billion North Carolina forest export chain (FEC) was identified, producing forest industries, wholesalers, transporters, and port authorities. Contributions of the FEC were determined from a social accounting matrix in terms of output, value added, and employment. Port value multipliers were then calculated to provide context to the FEC’s contributions. Direct contributions were US$602.989 million of value added and 6,870 jobs based upon FEC activities of US$1.945 billion. Total FEC contributions were US$1.439 billion of value added and 16,640 jobs on sales across North Carolina of US$3.494 billion. The output and value-added port value multipliers indicated each US$1.000 million of FEC output and value added generated an additional US$800,000 and US$1.386 million in other industries, respectively, before leaving the state to purchase imported inputs. Each 1,000 FEC-dependent jobs supported an average of 1,420 jobs elsewhere in North Carolina’s economy. Information such as this provides policymakers an improved scope of the contributions driven by exporting to foreign markets.