Economic Impacts of Selected Industries on the Puerto Rico Economy

This paper starts with a description of the most important trends for the Puerto Rico economy in the last decades. It also uses results from the 1994 "The Puerto Rico IMPLAN Model and Database" (with 1982 as the base year) and from an updated version of IMPLAN with 1992 as the base year. One purpose of the analysis is to use IMPLAN for Puerto Rico is to measure and monitor regional employment and income impacts of changing markets and federal subsidies and how the reduction of the tax rebates influence the economic development. Results suggest that the Puerto Rico economy is to a large extent exports- deficient, depending directly or indirectly on various subsidies to support existing business enterprise.