Our Local economic impact approach is to measure the overall economic impact - positive and negative - of an activity on its locality, identifying the different income distribution levels. It also allows to assess the impact of the site on local employment and tax revenues for the community.
I. Our approach
Our approach to local economic impact combines two complementary methods, an empirical approach and a statistical calculation approach to estimate the economic impacts of an activity. Our methods and tools - based on available data - can vary from one study to another, as they are especially customized to reach each client's objectives.
- Empirical diagnosis - a "qualitative" approach: we get the data from the field through questionnaire (employment, wages, housing areas, local expenses, etc.). This approach requires the collection and processing of a large number of empirical data, but provides a robust report on the local economic impact of an activity.
- Approach « statistical »: this approach uses the accounting and financial data of the site and calculates the various economic impacts through econometric models based on regionalized National Input-Output Tables. This method is faster to perform and provides orders of magnitude on economic indicators (direct impacts, indirect, induced, taxes).
II. The functional perimeter
The theoretical field of an activity’s Economic footprint study is extensive and covers several topics. These themes are represented by the diagram in Figure 1.
In the case of a local economic impact study, the main results are:
- Direct impact
- Turnover realized
- Jobs and direct wages
- Taxes paid
- Indirect impact (rank 1)
- Expenditures conducted with rank 1 suppliers
- Jobs and wages of rank 1 suppliers
- Taxes paid by rank 1 providers
- Indirect impact (rank 2 and above)
- Expenditures made on the whole chain of suppliers
- Jobs and wages over the entire chain of suppliers
- Taxes paid by all suppliers
- Induced impact
- Expenditure paid by employees from local businesses
- Expenditures made by visitors from local shops
- Jobs and wages of local businesses
- Taxes paid by local businesses
III. The advantages of our approach
- We have all the expertise to carry out economic footprint studies: accountancy, econometrics, statistics, computer science, sustainable development,
- We use customized software tools for these studies (data collection and tabulation),
- We use economic and statistical databases (official sources, economic tools and results of our previous work),
- We tailor studies according to the needs of our customers (communication, dialogue with the public authorities, government publications, tenders, internal policy …),
- We offer a transparent way and our goal is that our clients are able to take ownership of our work.