IDEAS home Printed from https://ideas.repec.org/p/ags/nddsps/189888.html
   My bibliography  Save this paper

The Economic Base of North Dakota: A Measure of the State’s Economy in 2012

Author

Listed:
  • Coon, Randal C.
  • Bangsund, Dean A.
  • Hodur, Nancy M.

Abstract

The growth and composition of the North Dakota economy can be measured using economic base analysis. Economic base is defined as the value of goods and services exported from an economic unit. Economic base also can be called a region’s export base because industries (or ‘basic’ sectors) earn income from outside the area. North Dakota’s economic base is comprised of those activities that produce a product or a service purchased by individuals, governments, and businesses located outside of the state. Economic base estimates represent dollars coming into the economy in exchange for exported goods and services. By contrast, economic impact and economic contribution assessments for industries examine the net and gross in-state business volumes, respectively. Comparisons of economic base estimates to economic contribution or economic impact assessments are not appropriate as those evaluations represent different economic measures. Also, measuring the state’s industries using Gross State Product does not provide comparable metrics to economic base, economic impact, or economic contribution assessments. The numbers presented in this report are part of an ongoing data set used to measure export sales in North Dakota. That data base is often used to illustrate changes in the state’s economy and differences in the relative sizes of industries in various regions of the state. North Dakota’s economy has traditionally been driven by natural resource-based activities, i.e., agriculture, coal, and petroleum. Growth in the state’s basic sector industries has accelerated since 2000 with agriculture and energy providing the impetus for this expansion. Efforts to diversify the state’s economy in the 1990s and early 2000s can be linked to the expansion of the state’s economic base, as growth in previous periods was steady, but moderate. More recently, the development of shale oil in the Williston Basin has created the largest change in the state’s economic base. North Dakota’s economic base has grown from $8.3 billion in 1990 to $42.3 billion in 2012 when measured in current (nominal dollars). In terms of constant dollars (removal of the effects of inflation), the state’s economic base went from $13.9 billion in 1990 to $42.3 billion in 2012. From 2011 to 2012, all economic base activities in the state grew in real terms except Federal payments. Agriculture grew by 13.7 percent from 2011 to 2012 (please note that agricultural processing and farm input manufacturing are not included with the agriculture industry due to data limitations). The petroleum sector grew by 100 percent from 2011 to 2012 (gas and crude oil processing is included as data is available to estimate those activities separately from oil and gas production). Manufacturing (which includes agricultural processing and farm input manufacturing) grew by 14.3 percent. Coal mining and conversion was nearly constant from 2011 to 2012, as growth was only 0.1 percent. Tourism grew in real terms by 3.3 percent from 2011 to 2012. Exported services, from 2011 to 2012, grew by 6.5 percent in real terms. Federal payments declined by 5.7 percent over the period. Overall, the state’s exports from

Suggested Citation

  • Coon, Randal C. & Bangsund, Dean A. & Hodur, Nancy M., 2014. "The Economic Base of North Dakota: A Measure of the State’s Economy in 2012," Staff Papers 189888, North Dakota State University, Department of Agribusiness and Applied Economics.
  • Handle: RePEc:ags:nddsps:189888
    DOI: 10.22004/ag.econ.189888
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/189888/files/AAE%20No.%2014001.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bangsund, Dean A. & Leistritz, F. Larry, 2007. "Economic Contribution of the Petroleum Industry to North Dakota," Agribusiness & Applied Economics Report 7642, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Coon, Randal C. & Leistritz, F. Larry & Hertsgaard, Thor A. & Leholm, Arlen G., 1985. "The North Dakota Input-Output Model: A Tool for Analyzing Economic Linkages," Agricultural Economics Reports 23304, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. Coon, Randal C. & Leistritz, F. Larry, 2001. "Adding an Exported Services Component to the North Dakota Input-Output Model's Business and Personal Services Sector," Agribusiness & Applied Economics Report 23562, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Coon, Randal C. & Hodur, Nancy M. & Bangsund, Dean A., 2012. "Renewable Energy Industries' Contribution to the North Dakota Economy," Agribusiness & Applied Economics Report 140122, North Dakota State University, Department of Agribusiness and Applied Economics.
    5. Leistritz, F. Larry & Ransom-Nelson, William & Rathge, Richard W. & Coon, Randal C. & Chase, Robert A. & Hertsgaard, Thor A. & Murdock, Steven H. & Toman, Norman E. & Sharma, Rakesh & Yang, Pai-Sung, 1982. "North Dakota Economic-Demographic Assessment Model (NEDAM): Technical Description," Agricultural Economics Reports 23341, North Dakota State University, Department of Agribusiness and Applied Economics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Coon, Randal C. & Bangsund, Dean A. & Hodur, Nancy M., 2013. "The Economic Base of North Dakota in 2011," Staff Papers 146009, North Dakota State University, Department of Agribusiness and Applied Economics.
    2. Coon, Randal C. & Bangsund, Dean A. & Hodur, Nancy M., 2014. "The Economic Base of North Dakota: A Measure of the State’s Economy in 2012," Staff Papers 189888, North Dakota State University, Department of Agribusiness and Applied Economics.
    3. Bangsund, Dean A. & Hodur, Nancy M., 2015. "Petroleum Industry's Economic Contribution to North Dakota in 2013," Agribusiness & Applied Economics Report 199400, North Dakota State University, Department of Agribusiness and Applied Economics.
    4. Coon, Randal C. & Bangsund, Dean A. & Hodur, Nancy M., 2012. "The Economic Base of North Dakota," Staff Papers 121763, North Dakota State University, Department of Agribusiness and Applied Economics.
    5. Bangsund, Dean A. & Hodur, Nancy M., 2017. "Petroleum Industry's Economic Contribution to North Dakota in 2015," Agribusiness & Applied Economics Report 260193, North Dakota State University, Department of Agribusiness and Applied Economics.
    6. Bangsund, Dean A. & Hodur, Nancy M., 2013. "Petroleum Industry's Economic Contribution to North Dakota in 2011," Agribusiness & Applied Economics Report 146512, North Dakota State University, Department of Agribusiness and Applied Economics.
    7. Coon, Randal C. & Olson, Frayne & Bangsund, Dean A. & Hodur, Nancy M., 2015. "Contribution of the Pulse Crop Industry to the Economies of North Dakota and Eastern Montana," Agribusiness & Applied Economics Report 231252, North Dakota State University, Department of Agribusiness and Applied Economics.
    8. Ndembe, Elvis & Hodur, Nancy M. & Bangsund, Dean A. & Coon, Randy, 2017. "Economic Contribution of Horse Racing to North Dakota in 2016," Agribusiness & Applied Economics Report 264415, North Dakota State University, Department of Agribusiness and Applied Economics.
    9. Bangsund, Dean A. & Leistritz, F. Larry, 2009. "Petroleum Industry's Economic Contribution to North Dakota in 2007," Agribusiness & Applied Economics Report 51990, North Dakota State University, Department of Agribusiness and Applied Economics.
    10. Coon, Randal C. & Bangsund, Dean A. & Hodur, Nancy M., 2015. "North Dakota's Economic Base in 2013," Staff Papers 225748, North Dakota State University, Department of Agribusiness and Applied Economics.
    11. Coon, Randal C. & Bangsund, Dean A. & Hodur, Nancy M., 2012. "The Economic Base of North Dakota," Staff Papers 121763, North Dakota State University, Department of Agribusiness and Applied Economics.
    12. Jenniches, Simon, 2018. "Assessing the regional economic impacts of renewable energy sources – A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 93(C), pages 35-51.
    13. Coon, Randal C. & Leistritz, F. Larry & Majchrowicz, T. Alexander, 1992. "The Role of Agriculture in the North Dakota Economy," AE Series 231480, North Dakota State University, Department of Agribusiness and Applied Economics.
    14. Baltezore, James F. & Leitch, Jay A., 1988. "Extent and Impact of Resident Hunter and Angler Expenditures in North Dakota in 1986," Agricultural Economics Reports 23312, North Dakota State University, Department of Agribusiness and Applied Economics.
    15. Coon, Randal C. & Hodur, Nancy M. & Bangsund, Dean A., 2017. "Wind Energy Industry's Contribution to the North Dakota Economy in 2016," Agribusiness & Applied Economics Report 264403, North Dakota State University, Department of Agribusiness and Applied Economics.
    16. Bangsund, Dean A. & Leistritz, F. Larry, 1991. "Economic Impact of Leafy Spurge in Montana, South Dakota, and Wyoming," Agricultural Economics Reports 23433, North Dakota State University, Department of Agribusiness and Applied Economics.
    17. Coon, Randal C. & Bangsund, Dean A. & Hodur, Nancy M., 2013. "North Dakota Lignite Energy Industry's Contribution to the State Economy for 2012 and Projected for 2013," Staff Papers 162924, North Dakota State University, Department of Agribusiness and Applied Economics.
    18. Leistritz, F. Larry & Coon, Randal C. & Thompson, JoAnn M., 1993. "The Economic Base of North Dakota Counties," Agricultural Economics Miscellaneous Reports 51169, North Dakota State University, Department of Agribusiness and Applied Economics.
    19. Zachary A. Wendling & David C. Warren & Barry M. Rubin & Sanya Carley & Kenneth R. Richards, 2020. "A Scalable Energy–Economy Model for State-Level Policy Analysis Applied to a Demand-Side Management Program," Economic Development Quarterly, , vol. 34(4), pages 372-386, November.
    20. Suwa, Aki, 2020. "Renewable energy and regional value: Identifying value added of public power producer and suppliers in japan," Finance Research Letters, Elsevier, vol. 37(C).

    More about this item

    Keywords

    Financial Economics; Production Economics;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:nddsps:189888. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: https://edirc.repec.org/data/dandsus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.