Accounting for the Linkages of Agriculture in Hawaii's Economy with an Input-Output Model: A Final Demand-Based Approach

Posted: 2 Mar 1999

See all articles by Khem R. Sharma

Khem R. Sharma

University of Hawaii - Department of Molecular Biosciences & Bioengineering (MBBE)

Ping-Sun Leung

University of Hawaii - Department of Molecular Biosciences & Bioengineering (MBBE)

Stuart T. Nakamoto

University of Hawaii - Department of Human Nutrition, Food, and Animal Sciences (UH-HNFAS)

Abstract

Agriculture is not a large contributor to Hawaii's economy but despite the recent decline in the sugar industry it is an important sector in terms of its contribution to food supply, income, and employment. Agriculture influences the economy as it procures production inputs from and provides inputs to other sectors in the economy. A theoretically sound input-output framework is suggested for investigating the interdependence between agricultural and other sectors of the economy. This paper also provides a review and identifies shortcomings of other approaches used in estimating the industry`s contributions to the economy. The non-agricultural final demands accounted for about 20% of total agricultural output, value added, labor income, and employment. The indirect contribution of agricultural final demands and related distribution services to other sectors constituted about 20% of total output and labor income, 22% of value added, and 16% of total employment generated by agricultural final demands and related trade and distribution services.

JEL Classification: Q10

Suggested Citation

Sharma, Khem R. and Leung, Ping-Sun and Nakamoto, Stuart T., Accounting for the Linkages of Agriculture in Hawaii's Economy with an Input-Output Model: A Final Demand-Based Approach. Available at SSRN: https://ssrn.com/abstract=150671

Khem R. Sharma (Contact Author)

University of Hawaii - Department of Molecular Biosciences & Bioengineering (MBBE) ( email )

Gilmore Hall 111
3050 Maile Way Department of Biosystems Engineering
Honolulu, HI 96822
United States

Ping-Sun Leung

University of Hawaii - Department of Molecular Biosciences & Bioengineering (MBBE) ( email )

Gilmore Hall 111
3050 Maile Way
Honolulu, HI 96822
United States

Stuart T. Nakamoto

University of Hawaii - Department of Human Nutrition, Food, and Animal Sciences (UH-HNFAS) ( email )

Gilmore Hall, Room 112
3050 Maile Way Gilmore Hall 112
Honolulu, HI 96822
United States

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