Editing Economic base analysis (section)

==Assumptions==

As H. Craig Davis points out, there are a number of assumptions on which economic base analysis is conducted. These include (1) that exports are the sole source of economic growth (investment, government spending, and household consumption are ignored); (2) that the export industry is homogeneous (i.e., that an increase or decrease of one export does not affect another); (3) the constancy of the export/service ratio; (4) that there is no inter-regional feedback; and (5) that there is a pool of underutilized resources.<ref name="Davis">Davis, H. Craig, ''Regional Impact Analysis and Project Evaluation'', UBC Press, 1990.</ref>