IMPACTS OF BSE CRISIS ON THE CANADIAN ECONOMY: AN INPUT-OUTPUT ANALYSIS

Abstract

This study assesses the impacts of BSE crisis on the Canadian economy at the provincial level using an input-output model. The impacts of reductions in exports of beef and cattle on Gross Domestic Product at provincial level, employment, labor income and industrial production are evaluated for Alberta, Ontario, Quebec and Saskatchewan provinces. The results show that a reduction of value of exports by $10 million would reduce average Gross Domestic Product and labor income in above provinces by $8.7 and $3.7 millions. Approximately 145 jobs per province would be lost and industrial production would be reduced by $19.7million. The sizes of the impacts on various industries are different in different provinces reflecting the heterogeneity in intra-industrial linkages among provinces. A reduction in beef exports has significant adverse effects on animal slaughtering, rendering and meat processing, cattle and animal food manufacturing industries while a reduction in cattle exports has significant adverse effects on cattle, feed grain and animal food manufacturing industries in most of the cases.