Beer as a Means of Economic Development: An Economic Impact Analysis of the Michigan Value Chain

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May 1, 2019 - Steven R. Miller, J. Robert Sirrine, Ashley McFarland, Philip H. Howard and Trey Malone

While many studies have suggested the beer value chain might be a vehicle for economic growth, few have estimated the economic impacts of craft beer to a geographic region. As such, this study uses modified input/output analysis to identify the economic contributions of instate beer production to the Michigan economy. We find that the beer value chain generated nearly $500 million in Gross State Product in 2016, contributing nearly $1 billion as well as 9738 jobs in total aggregate economic contributions. The results suggest that state governments might generate economic growth by creating a business climate that is conducive to the growth of the instate beer value chain.

 

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