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    Assessing the Economic Impact of an Oil and Gas Firm’s Head Office Relocation to Calgary, AB

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    Assessing the Economic Impact of an Oil and Gas Firm's Head Office Relocation to Calgary, AB.pdf (995.5Kb)
    Date
    2013-04-09
    Author
    Huffman, John F
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    Abstract
    Corporate head offices serve as the figureheads and decision-making cores of firms. For a variety of

    reasons, these head offices tend to locate in major cities. Cities themselves compete to attract head

    offices for their presumed positive economic impact, but what is the impact? Calgary, Alberta, is

    Canada’s energy centre and an emerging leader in head office counts that is expected to further grow its

    share of Canadian corporate head offices. This report seeks to estimate the economic impact of an oil

    and gas (O&G) firm relocating to Calgary, AB. Based on decades of theory and using data from a variety

    of sources, two multipliers are calculated: the economic base multiplier and the H.C. Davis income

    multiplier. By applying these multipliers to data regarding head office employment and O&G industry

    wages, estimates of the employment and income effects of the relocation are found. The results

    emphasize the importance of both the O&G industry and attracting head offices to Calgary. Based on

    these conclusions, two key policy avenues are recommended to encourage further expansion of

    Calgary’s head office counts.
    URI for this record
    http://hdl.handle.net/1974/7873
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