Document Type

Article

Publication Date

4-1-1972

Abstract

The Interindustry Study of the Upper Rio Grande Valley indicates that the region is highly dependent on Federal government expenditures and export trade. The export-base industry in the region is highly dependent on imports and mostly related to outside firms. The manufacturing sector is quite limited to very few basic industries like primary metal, petroleum refining and apparels. These 3 industries have very low multipliers because the local supportive industry is not developed enough to provide the basic industries with a significant proportion of their input needs. The agricultural sector and the trades sector based on agricultural products have the highest multipliers among all local processing sectors because of their high dependence on local markets for their inputs. Unfortunately, their contribution to the gross regional product is minute because of their low level of output. These sectors should be encouraged to expand. The construction sections rank very high in the level of their outputs and their multipliers. However, they are highly dependent on government expenditures. A boom in regional construction will be quite helpful to the region insofar as most local processing sectors will be substantially affected by a rise in final demand for construction. The study shows that the regional processing sectors produced in 1967 an output valued at $1,804,573,000 in 1967 dollars. The region exported goods and services valued at $692 million but imported goods and services valued at $730 million.

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