INCLUDING THE ECONOMIC IMPACT OF COST PAYING IN REGIONAL INPUT-OUTPUT ANALYSIS

Traditional input-output analysis is used to determine indirect and induced benefits resulting from spending on a particular projects. Emphasis has been on positive impacts to the economy in question, usually ignoring the related costs of paying for the project. Input-output was used in this study to see if the negative impacts brought about by payments for a projects were significant. Negative impacts were found to give rise to significant indirect and induced negative impacts on the economy suggesting that negative impacts be included as a standard feature in input-output analysis.