Friday, January 12, 2007 - 10:45 AM

Simulation Analysis and Economic Impact of Georgia Cotton Production

Archie Flanders, University of Georgia, Center for Agribusiness and Economic Development, University of Georgia, Athens, GA 30602

Cotton production is an important economic stimulus to rural economies. This research investigates Georgia cotton production with simulation analysis and an input-output model. Simulation analysis investigates the viability of the state cotton industry with and without government programs for income support. Input-output analysis estimates the economic impact of the Georgia cotton industry in terms of output, employment, labor income, and tax revenue generated due to cotton production. The results show cotton production returns to government treasuries at the local, state, and federal levels. Government programs for income support lead to economic benefits throughout the economy. Reducing income support payments would lead to diminished viability of Georgia cotton production. Finacial benefits lost to cotton production would cause economic losses in other economic sectors.

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Recorded presentation