What are multipliers and how are they applied to the Ocean Economy?
The total economic role of a given industry in a given region is the sum of its direct, indirect, and induced activity. Using employment as an example, direct activity is the employment in the industry itself. Indirect employment is the employment in firms within the region who supply goods and services to the industry. Induced employment is the employment affected by the spending of the direct and indirect employment within the region for the purchases of food, cars, services, etc. The total economic influence of a given industry’s employment in a given region is thus defined as: Total Employment = Direct Employment + Indirect Employment + Induced Employment. The sum of indirect and induced employment is referred to as the “multiplier.” Total employment may thus also be defined as: Total Employment = Direct employment * multiplier Where the multiplier = 1 + (Indirect + Induced Employment) Direct Employment The same equivalency can be defined for wages and GDP. The relationship between
