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Economic-Base Analysis

By Contributor on December 13, 2019

Economic-base analysis is an appraisal term that refers to the measurement of economic activity in a community which plays a prominent role in attracting income from outside the local area.

Basic and non-basic employment trends are important variables that influences economic-base analysis.

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Prediction of income, population patterns, and other factors have an impact on the demand for land use.

Thus, affecting the value of land.

The basic industry multiplier for example, is a ratio of total population of the community to employment in basic industries. It is one of the considerations in economic base analysis.

This multiplier measure how many people is added to the population with each new job created.

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For example, a new working might bring family member along to the local area. It would also create more demand for services like hairdressing, waiters, etc.