Course Introduction: Overview, Format, and Objectives
Laying a Foundation for Economic Modeling
Methods for Researching the Competitive Strengths of a Region
Workforce and Growth: Using Data to Tell Your Region's Labor Market Story
Mapping Industry Clusters, Analyzing Interdependencies, and Identifying Targets
Tools for Evaluating and Communicating Economic and Fiscal Impacts

How Economic Base Theory is Used to Model a Regional Economy (VIDEO)

In this video lecture, Adrienne Johnson, Director of Research at the Economic Growth Engine in Memphis, Tennessee, provides an introduction to economic base theory, a simple, two-sector model for understanding and quantifying regional economic activity.

This model categorizes industries by the amount of production demand they create in their local economies. It’s a fundamental and often-used method of measuring activity in the regional economy, and it focuses on the production and demand side of the economy. In this module, you will learn how economic analysts:

  • Define two major types of industries categorized by the economic base theory model.
  • Use the model to measure the contributions of different industries to a region’s gross domestic product (GDP).
  • Develop a regional profile by using two different approaches to the model.

In the video module that follows, you’ll learn the next step for applying this model to your own local economy: using multipliers to predict regional economic impacts.