Economic Contribution of Forestry and Forest Products on Louisiana’s Congressional Districts

Jinggang Guo, Fannin, J. Matthew "Matt"

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Louisiana map with six districts represented.

The forest products industry impacts the Louisiana economy in a number of ways ranging from jobs, wages and purchases in local economies to local, state and federal taxes. Additionally, the purchase of goods and services by the forest products industry and its employees spurs economic activity in other sectors of the economy resulting in a substantial cumulative economic impact.

The forestry and forestproducts industry in Louisiana had a total economic impact amounting to 37,011 jobs and $2.23 billion in income during 2021. Forestry and the forest products industry generated an output of $11.03 billion in total. Total industry output is defined as the value of all goods and services produced in the districts. Value added amounted to approximately $4.88 billion. Value added represents the creation of new wealth and is inserted into the economy through payments made to workers, interest, profits and indirect business taxes.

The forestry and forest products contribution to the Louisiana economy are summarized in the column to the right and detailed in Table 1.

These results were obtained using Impact Analysis for Planning (IMPLAN), an input- output model. Input-output analysis can track how the inputs of one sector of the economy affect the outputs of other sectors. This can illustrate a sector or group of sectors’ importance to the overall economy.

For detailed tables, please see PDF.


Employment: Number of full- and part-time employees in the chosen industries and the jobs created in the rest of the economy by the chosen industries.

Labor income: Includes wages, salaries and benefits of employees as well as income for self-employed individuals.

Output: Represents the value of industry production.

Value added: The difference between an industry’s total output and the cost of its intermediate inputs.

Direct effects: Refers to the sector’s own production, value added, employment and labor incomes.

Indirect effects: Refers to the economic activities in other sectors by the forest sector’s purchase of goods and services from those other sectors.

Induced effects: Refers to spending by employees from the forest sector on goods and services, such as groceries and gasoline.

Contact Jinggang Guo at for more details on this publication.

Acknowledgements: This work has been supported, in part, by the USDA National Institute of Food and Agriculture, Renewable Resources Extension Act Award Numbers: 2017-46000-01800 (Louisiana State University).

8/16/2023 5:19:48 PM
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