The data Behind the "i" is helpful for better understanding the Results produced in your analysis.
To calculate the leakages due to spending on Intermediate Inputs outside of the Study Region click on the "i" icon next to the Selected Region and navigate to:
> Balance Sheets
> Industry Balance Sheet
> Commodity Demand
In the Commodity Demand table, you'll find the following columns (be sure to filter by your Industry of interest):
Gross Absorption = the proportion of Total Industry Output for this industry that goes toward purchases of each commodity. Gross Absorption is calculated as Gross Inputs/Total Industry Output. Total Gross Absorptions will be less than one, with the remainder of Total Industry Output going toward Value-Added.
Regional Absorption = the proportion of Total Industry Output for this industry that goes toward local purchases of each commodity. Regional Absorption can be calculated as Gross Absorption * RPC
Therefore, Total Gross Absorption - Total Regional Absorption = percentage of Total Industry Output that is spent on Intermediate Inputs outside of the Region. This percentage multiplied by Total Industry Output are the Intermediate Input dollars leaked out from the Direct Effect.
Take for example "Industry 56 - Construction of other new nonresidential structures" in Pennsylvania 2018. The Total Gross Absorption is 52.057% and the Total Regional Absorption is 31.671%. This means about 52% of Output is allocated to Intermediate Inputs overall, and about 32% of Output is allocated to Intermediate Inputs in the Region. Therefore, about 20% of Output is allocated to Intermediate Inputs outside of the Region.
% of Total Industry Output spent on non-local Intermediate Inputs = 52.057% - 31.671% = 20.386%
When analyzing $1M of new Output in this Industry in PA, IMPLAN would estimate $203,860 of the $1M of new production as being spent on non-local Intermediate Inputs. The remaining $796,140 includes local Intermediate Inputs ($316,710) and Value Added ($479,430).
Written June 16, 2020