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The Identification of Economic Base Industries, with an Application to the Newfoundland Fishing Industry


  • Noel Roy
  • Ragnar Arnason
  • William E. Schrank


The contribution of an industry to GDP is typically measured by its value added. However, casual observation suggests that some industries play a greater role in overall economic activity than this measure indicates. Observations of this kind have in particular been applied to resource industries and have given rise to the concept of the economic base. Unfortunately, empirical and econometric verification of the concept of a base industry has been limited. This paper outlines a theory of base industries, develops a methodology for identifying economic base industries and measuring their impact, and applies this methodology to the fishing industry of Newfoundland.

Suggested Citation

  • Noel Roy & Ragnar Arnason & William E. Schrank, 2009. "The Identification of Economic Base Industries, with an Application to the Newfoundland Fishing Industry," Land Economics, University of Wisconsin Press, vol. 85(4), pages 675-691.
  • Handle: RePEc:uwp:landec:v:85:y:2009:i:4:p:675-691

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    References listed on IDEAS

    1. Donald E. Frey, 1989. "A Structural Approach to the Economic Base Multiplier," Land Economics, University of Wisconsin Press, vol. 65(4), pages 352-358.
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    Cited by:

    1. Al-Belushi, Kawther I.A. & Stead, Selina M. & Burgess, J. Grant, 2015. "The development of marine biotechnology in Oman: Potential for capacity building through open innovation," Marine Policy, Elsevier, vol. 57(C), pages 147-157.
    2. repec:elg:eechap:14395_10 is not listed on IDEAS
    3. SurĂ­s-Regueiro, Juan C. & Garza-Gil, M. Dolores & Varela-Lafuente, Manuel M., 2014. "Socio-economic quantification of fishing in a European urban area: The case of Vigo," Marine Policy, Elsevier, vol. 43(C), pages 347-358.

    More about this item

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q22 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Fishery


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