The Hawaii Inter-County Input-Output Study: 2002 Benchmark Report

This report updates the 1997 Inter-County Input-Output (I-O) Study for Hawaii (April 2005) using the Economic Census and other information for year 2002. The 2002 Inter-County Study is an extension of the 2002 State I-O Study. In addition to showing the flows of goods and services among various economic sectors within each county, the Inter-County I-O model also accounts for flows that occur among the various sectors between counties. The Inter-County I-O model has several advantages over the State I-O model. First, by accounting for differences in consumption and production among counties, the Inter-County I-O model can be used to better assess impacts of county-specific economic activities. Second, the Inter-County I-O model can provide a useful tool in assessing rural-urban linkages in the state economy and in identifying appropriate policies to promote economic growth in less-developed areas. Third, the Inter-County I-O model provides an effective modeling framework for producing long-range economic and population forecasts for counties. By providing a couple of diverse examples, this report also demonstrates the correct use of Inter-County I-O multipliers in impact analyses under different situations.

Along with the report, two versions of inter-county I-O tables are also provided. The condensed table shows 20 industry sectors in each of the four counties and it is also used to describe and illustrate the Inter-County I-O analysis in the report. The detailed table is composed of 67 sectors for Honolulu and 20 industry sectors for each of the neighbor island counties.