Economic Impact Study

study1by Sanela Porca, Ph.D.
Associate Professors, Economics
School of Business Administration
University of South Carolina Aiken
Fall 2009

 

This study was sponsored by the Aiken Corporation and the Aiken Downtown Development Association to provide an overview of the local Aiken economy and to determine the economic impact of the Aiken Corporation and Aiken Downtown Development Association. In order to better understand the local economy, the study provided a broad overview of the Aiken County economy as well as a specific industrial structure analysis.

Key Findings

•  The cost of projects involving the Aiken Corporation and Aiken Downtown Development Association amount to $43.658 million in total spending produced by the Aiken Corporation and Aiken Downtown Development Association. The $43.658 million in direct gross receipts leads to an additional $13.537 million in indirect effects and an additional $25.703 million in induced effects for a total of $82.899 million in gross receipts.
•  The projects involving the Aiken Corporation and Aiken Downtown Development Association account for 1,126 full-time workers. There are an additional 187 jobs due to indirect effects and 382 jobs due to induced effects of the Aiken Corporation and Aiken Downtown Development Association. In total, 1,695 jobs in the City of Aiken and Aiken County can be attributed to the operations of the Aiken Corporation and Aiken Downtown Development Association.
•  There are $21.273 million in income effects that result directly from the Aiken Corporation and Aiken Downtown Development Association’s projects. In addition, there are indirect linkages that account for an additional $4.834 million and the induced effects are an additional $8.709 million. In total, the impact of the Aiken Corporation and Aiken Downtown Development Association activities on the local household income is estimated to be $34.816 million.
•  The estimated impact of the Aiken Corporation and ADDA on the local property tax revenue mounts to be $5,077,583.00.
•  In terms of the output multiplier of the Aiken Corporation and Aiken Downtown Development Association, one dollar of spending by their projects leads to $1.80 of spending in the local economy. Relative to other industries that dominate the Aiken economy, this multiplier is smaller than the one produced by the manufacturing sector (2.05) or the construction sector (2.10). However, it is still larger than the FIRE multiplier of 1.51 (FIRE — Finance, Insurance, and Real Estate) and the Manufacturing multiplier of 1.70.

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