The economic contribution of the oyster industry locally, region-wide, or nation-wide is a crucial information in making private investment decisions, formulating government policy, and developing research and extension programs for the industry. The IMPLAN (http://implan.com/) software and the 2013 input-output data for the five Gulf States were used to estimate the economic contribution of commercial oyster fishing to the Gulf of Mexico regional economy in 2015. The economic analysis used sector 17 or commercial fishing of the 2013 IMPLAN input-output data. These estimates, however, do not include the economic contributions of oyster processing and distribution.
The IMPLAN economic model estimates of the economic contributions regarding output or sales, employment or jobs, labor income, value added and tax revenues. The income, value-added, and output contributions are expressed in dollars for the year specified by the user. Output or sales are the gross sales by businesses within the economic region affected by an activity. Labor income includes personal income including wages and salaries and proprietors’ income or income from self-employment. Employment contributions are expressed regarding a mix of both full-time and part-time jobs. Value-added is the contribution made to the value of seafood products at each stage of harvesting, processing, and distribution.
The total economic contribution is the sum of direct, indirect and induced effects. The direct effects express the economic impacts in the sector in which the expenditure was initially made. Indirect effects result from changes in the economic activity of other industrial sectors which supply goods or services to the commercial fishing industry. Induced effects are the product of personal consumption expenditures by industry employees.
The annual commercial dockside values of Eastern oysters in the Gulf of Mexico Region in 2015 reached $99.3 million, which was 21.1% more than the average annual dockside values during the last five years (Figure 1). The total economic contribution of commercial Eastern oyster fishing in 2015 amounted to $188.5 million (Figure 2). The Eastern oyster commercial fishing created more than 2,700 jobs and generated labor income amounting to $67.2 million in the Gulf regional economy.
Figure 2. Total economic contribution includes direct, indirect and induced effects estimated by using the 2015 annual landing values and 2013 IMPLAN data. The local purchases percentage was set to 100%. The number of jobs is rounded off.
The Eastern oyster commercial fishing industry generates annual tax revenues for the Gulf States and the U.S. federal government. The households and businesses in 2015 paid $11.5 million to the federal government as social insurance tax, tax on production and imports, corporate profit tax, and personal income tax. The households and businesses in 2015 paid $5.6 million to the local and state governments as social insurance tax, tax on production and imports, corporate profits tax, and personal tax.