Economic impacts of including Davie Shipyard in Canada's National Shipbuilding Strategy

The City of Lévis wished to retain the professional services of a firm specialized in consulting services in order to carry out a study on the direct and indirect economic impacts of including the Davie Shipyard in Canada's National Shipbuilding Strategy.

The mandate was to determine, over a minimum 20-year horizon, the short-, medium- and long-term economic impacts for all of Quebec, as well as for 13 administrative regions. Through this exercise, the City wished to demonstrate that the contracts obtained from the federal government in connection with the National Shipbuilding Strategy should generate significant revenues in the long term, throughout Quebec. Specifically, the objectives of the mandate were to:

• Identify key industrial and commercial sectors affected based on strengths and opportunities by administrative region;
• Document the potential direct, indirect, and induced job creation for each of the 13 administrative regions;
• Estimate the direct, indirect, and induced impacts on the province's gross domestic product (GDP);
• Estimate the potential for new fiscal impacts for Quebec (personal income tax, QST and other indirect taxes, provincial parafiscal taxes).

The calculation of economic impacts required the use of two models, the intersectoral model developed by the Institut de la statistique du Québec (MISQ) and the model developed by Écotec that allows for a breakdown of economic impacts by administrative region. This meticulous work was made possible by analyzing the data related to the Davie Shipyard's expenditures. This work was necessary because the MISQ is based on the input (purchases) and output (production) tables of the Quebec economy to simulate an expenditure "shock" related to different types of requests.