1. Classification of Oregon's Economic Sectors

Oregon's economy may be classified into eight major economic sectors: agriculture, lumber and wood, high-tech, other manufacturing, non-financial private services, financial services, other private services, and government services. This document defines industry composition of each sector based on the 2-4 digit SIC (Standard Industrial classification) codes.

1.1 Oregon's Agricultural Sector

Currently there is no consensus among scholars regarding components of any state's agricultural sector. The majority of those who have researched the impacts of the agricultural sector on the state level were usually influenced by the fear of not being able to show high agricultural impacts. Consequently, the notion of "agribusiness" wrongly has been chosen as a replacement for agriculture sector. The spectrum of industries which have been included under the agricultural sector ranges from farm crops production (field crops for food and feed, vegetables, fruits and nuts trees); cotton; tobacco; livestock production; food processing; agricultural services and inputs; forestry; fishing, seafood, and aquaculture; hunting; fibers and textile; transportation; wholesale food trade; retail food stores and departments; restaurants and eating and drinking places and farm wines.

The choice of correct and ideal components of the agricultural sector depend on two major factors: the objective of the underlying studies, and data availability. Studies concerned with food and feed demand, competitiveness, comparative advantage, and sectoral impact analysis for the purposes of regional economic development planning may choose different sub- sectors of agribusiness to conduct their studies. A demand for food study should choose the agricultural sector exclusive of nursery products. The reason being the quantity and prices of nursery products does not belong to consumer's demand functions for food products. In contrast, for agricultural sectoral impact analysis researchers should include only economic activities of soil related products on farm, manufacturing, and wholesale levels related to the production, maintenance, services and marketing of such products.

For Oregon's agricultural sector impact analysis, this document will include the economic activities that are soil related excluding timber, lumber, and forestry. Timber, lumber, and forestry are excluded from the agricultural sector for two reasons. First, their production time span is different from agricultural farm products and second, these industries may exist and be operative even if the region under study is not an agricultural region. For the latter reason, the economic activities such as retail trade related to food stores and restaurants should be excluded from the definition of the agricultural sector.

The lack of consistent state level data on production, processing, transportation, employment, trade, warehousing, and distribution imposes a serious burden on researchers to define an appropriate sector for agricultural activities. Currently, conflicting values of production (sales), and value added (GSP) data are reported based on 2-4 digit SIC codes by ASM, BEA and OSU. the "origin of movement" trade data for corresponding products are reported based on highly aggregated SIC's (Standard Industrial Classification) by MISER, and disaggregated up to 10-digit U.S. -H.S. (U.S. schedule B, harmonized system) codes by PIERS (Product Import Export Reporting System) based on shippers export declaration zip codes (SEDs). The state level employment data estimated and reported by Oregon's Department of Human Resources for 2-4 digit SIC codes and generally includes only the covered employment.

In this document, as far as Oregon is concerned, the agriculture sector is defined as a sector which is concerned with the production and processing of human food, animal feed, and byproducts of these activities such as wool, hide, feathers, natural fibers, natural dyes, and all activities which would not exist in the absence of farm and food processing production activities. Specifically, Oregon's agriculture sector encompasses economic activities related to farm and food processing production at the farm, manufacturing, wholesale, and services levels, but excluding retail trade. Table 1 shows the industry composition of Oregon's agricultural sector.

1.2 Oregon's Wood Sector

Oregon's wood sector encompasses three main wood related industries of lumber and wood products (SIC 24), furniture and fixtures (SIC 25), and paper and allied products (SIC 26). The 3-4 digit industry composition of wood sector is shown in Table 2.

1.3 Oregon's High-tech Sector

Oregon's high-tech sector consists of three major industries of industrial machinery and equipment (SIC 35), Electronic and other electric equipment (SIC 36), and instruments and related products (SIC 38). The 3-4 digit industry composition of this sector is shown in Table 3.

1.4 Oregon's "Other" manufacturing Sector

Oregon's "Other" manufacturing sector includes all manufacturing industries not included in agriculture and high-tech sectors. Other manufacturing sector encompasses 3-4 digit industries listed in Table 4. Note, that natural resource base industries of forestry, fishing, oil and gas extraction, and nonmetallic minerals are included in "other" manufacturing sector siince their contribution are less than $1 billion.

1.5 Oregon's Private Non-financial Service Sector

For the purpose of this study, Oregon's service industries are classified under four different sectors of non-financial private services, financial services, other private service, and government services. The non-financial private service sector consist of construction services, transportation and utility services, and wholesale and retail trade services. Table 5 lists 2-4 digit SIC code industries comprising this sector activities.

1.6 Oregon's Financial Service Sector

Oregon's financial service sector includes all institutions providing financial services to Oregon's economy. This sector consist of depository and non-depository institutions, insurance services, real estate activities, holding companies and investment services. Table 6 describes 2-4 digit SIC coded industries included in this sector.

1.7 Oregon's "Other" Private Service Sector

All private service industries not included in two previous sectors are listed under "other private service sector. This sector mainly consists of services related to hotels, personal and business, auto repairs, motion picture, amusement, recreation, health, education, legal, and social activities. The 2-4 digit SIC code industry composition of this sector is shown in Table 7.

1.8 Oregon's Government Service Sector

Oregon's public service sector consists of services provided by federal, state, and local governments. Table 8 shows industry coverage of this sector based on 2-4 digit SIC codes.