The role of the Alaska seafood industry: a social accounting matrix (SAM) model approach to economic base analysis

A social accounting matrix (SAM) model for Alaska is constructed to investigate the role of the state’s seafood processing industry. The SAM model enables incorporation of the unique features of Alaska economy such as (a) the existence of a large nontraditional economic base, (b) a large leakage of labor income, and (c) a very large share of intermediate inputs imported from outside the state. The role of an industry in an economy with these features cannot be examined correctly within an input–output framework, which is the method most often used for examining the importance of an industry to a region. Taking an export base view of the economy, we found seafood processing to be an important industry, generating 4.5% of the state’s total employment. While an important driver of the state’s economy, the industry has the smallest SAM multiplier mainly due to a large leakage of labor earnings and a large share of imported intermediate inputs. We also found that nontraditional economic base components such as (a) federal transfers to state and local governments, and (b) federal transfers, permanent fund dividend (PFD) payments, and other extra-regional income received by households generate about 26% of the state’s total employment and earnings.