Indirect Spending back into own industry

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    IMPLAN Support
    Hello Edward, While it is certainly the case that a firm may purchase from itself, what you typically see when a firm purchases from its own sector code is purchases from other firms that happen to share the same sector. Without knowledge of your firm (and its corresponding IMPLAN sector), we cannot say for sure that the industry's production function does not make a purchase from its own sector; however, it's more likely that the indirect spending back into your sector is representative of other industries purchasing from your firm's sector during the subsequent waves of indirect impacts. Impacting your industry will result in a total output larger than your firm's reported operation (due to the indirectly impacted sectors purchasing from your firm's sector). As your firm represents the entire industry in the region, we suggest that you utilize the Contribution Analysis methodology. Estimating the Contribution of an Entire Industry: IMPLAN Online http://support.implan.com/index.php?option=com_content&view=article&id=351 Estimating the Contribution of an Entire Industry: IMPLAN Pro http://support.implan.com/index.php?option=com_content&view=article&id=211 Regards, IMPLAN Staff
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