Measuring the economic linkage of Alaska fisheries: A supply-driven social accounting matrix (SDSAM) approach

Abstract

A supply-driven social accounting matrix (SDSAM) model is developed to examine backward and forward linkage effects of Alaska fisheries. The model includes five harvesting sectors (Trawlers, Longliners, Crabbers, Salmon Netters, and Other Harvesters), two processing sectors (Motherships and Shorebased processors), and a Catcher-processor sector, which both harvests and processes. The study shows that total backward linkage effects of the Other Harvesters sector are strongest, followed by Trawlers and Salmon Netters, while the strongest total forward linkage effects are from Salmon Netters, followed by Other Harvesters and Crabbers. Results of a policy simulation where the effect of a 10% reduction in pollock catch was investigated show that total output will decrease by $37.1 million via backward linkages while total output in forward-linked sectors falls by $16.6 million. When the direct impacts on the harvesting sectors ($73.6 million) are included, total output decreases by $110.7 million via the combined direct shock and backward linkage effects. Income to Alaska households falls by $17.6 million due to effects on backward-linked industries, and by $0.5 million due to forward-linked effects.