Economic impact analysis

What is economic impact analysis?

An economic impact analysis (EIA) helps communities understand how local economies work. An EIA will help you and your community understand questions like:

  • How important is a business or industry to your local economy?
  • What kind of investment should you make in your local economy?
  • How many jobs will be affected by a change in the economy?
  • How will a change affect the amount of money that comes to your economy?

To get started, contact a community economics educator.

Our research process

Economies are complicated, but an economic impact analysis helps cut through the maze. To find answers, we use a tool called Implan™. It calculates how business inputs and outputs make ripples throughout a local economy. The model helps us understand how jobs in one business affect other businesses. We can sort data into three types of impacts:

  1. Direct impacts from an economic event or asset
  2. Indirect impacts that result from business-to-business transactions
  3. Induced impacts that result from consumer-to-business transactions

Ways to use our research

There are three ways to use economic impact analysis in your community or industry:

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Consult with us

Community economics • Leadership and civic engagement • Tourism

Extension educators work in communities with partners throughout Minnesota. Contact us for consultation, guidance and conversation about your community.

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