Return on Investment and Budget

OIBD is a state funded program titled World Trade PA under the DCED budget. OIBD’s tracks activity and success to capture it’s Return on Investment.

World Trade PA Impact Report: 2005-2014

Year PA Budget Trade Development (CTD) Direct Investment (CDI) Total World Trade PA Figures
Export Sales Jobs Tax Impact Capital Investment Jobs Tax Impact $$ Impact Jobs Tax Impact ROI
2005-06 $7,400,000 $60,000,000 N/A N/A $26,690,000 3,008 $2,379,768 $86,690,000 3,008 $2,379,768 11.04:1
2006-07 $20,700,000 $253,579,924 N/A $14,678,185 $192,100,000 4,648 $8,126,657 $445,679,924 4,648 $22,804,842 21.63:1
2007-08 $17,900,000 $364,779,750 N/A $20,804,809 $160,980,000 5,172 $12,931,031 $525,759,750 5,172 $33,735,840 30.26:1
2008-09 $13,200,000 $454,480,571 3,815 $27,377,919 $118,700,000 2,931 $20,894,936 $573,180,571 6,746 $48,272,855 46.08:1
2009-10 $6,700,000 $483,197,831 6,446 $25,911,823 $161,200,000 1,620 $24,905,649 $644,397,831 8,066 $50,817,472 102.76:1
2010-11 $6,270,000 $526,343,431 4,020 $33,663,379 $169,593,900 4,091 $29,697,258 $695,937,331 8,111 $63,360,637 120.10:1
2011-12 $6,120,000 $831,236,203 6,897 $62,465,944 $54,849,800 1,818 $36,225,164 $886,086,003 8,715 $98,691,108 159.91:1
2012-13 $6,120,000 $795,861,743 7,027 $59,142,313 $74,811,229 1,867 $40,411,854 $870,672,972 8,894 $99,554,167 157.53:1
2013-14 $7,300,000 $864,903,317 7,495 $52,428,481 $180,644,710 3,122 $45,635,994 $1,045,548,027 10,617 $98,064,475 155.66:1
9-year total $91,710,000 $4,634,382,770 35,700 $296,472,853 $1,139,569,639 28,277 $221,208,311 $5,773,952,409 63,977 $517,681,164 67.60:1


World Trade PA Impact Report: 2009-2013

Year PA Budget Trade Development (CTD) Direct Investment (CDI) Total World Trade PA Figures
Export Sales Jobs Tax Impact Capital Investment Jobs Tax Impact $$ Impact Jobs Tax Impact ROI
2009-10 $6,700,000 $483,197,831 6,446 $25,911,823 $161,200,000 1,620 $24,905,649 $644,397,831 8,066 $50,817,472 102.76:1
2010-11 $6,270,000 $526,343,431 4,020 $33,663,379 $169,593,900 4,091 $29,697,258 $695,937,331 8,111 $63,360,637 120.10
2011-12 $6,120,000 $831,236,203 6,897 $62,465,944 $54,849,800 1,818 $36,225,164 $886,086,003 8,715 $98,691,108 159.91:1
2012-13 $6,120,000 $795,861,743 7,027 $59,142,313 $74,811,229 1,867 $40,411,854 $870,672,972 8,894 $99,554,167 157.53:1
2013-14 $7,300,000 $864,903,317 7,495 $52,428,481 $180,644,710 3,122 $45,635,994 $1,045,548,027 10,617 $98,064,475 155.66:1
5-year total $32,510,000 $3,501,542,525 31,885 $233,611,940 $641,099,639 12,518 $176,875,919 $4,142,642,164 44,403 $410,487,859 139.05:1


Tax impact calculations were made by the Northeastern Pennsylvania Alliance (NEPA), using the IMPLAN* Impact Modeling System (www.implan.com)

Important Note: Only confirmed, state-assisted export sales, as reported by PA businesses on a signed “export confirmation form” have been used as the basis for this tax impact calculation. More than 50% of our clients are not willing to sign these forms for confidentiality reasons, so these numbers are a conservative estimate of the actual tax impact of our program.

2. CDI – Direct Investment

Estimated personal income tax (PIT) generated by direct and indirect jobs

Direct jobs are created and retained jobs reported by successful CDI projects located in Pennsylvania. To determine wages, a combination of each project’s primary NAICS code was reviewed and a general SOC code was assigned. Using the Pennsylvania Center for Workforce Information and Analysis, median wages were retrieved for each SOC code for 2011, 2010, 2009, 2008, and 2007. For 2006 and 2005, data from 2007 was used as it is the earliest available data. According to Invest in America, foreign-owned companies in the US pay an average of 25% to 35% more than domestic companies, so the median wages gathered were increased by 25% for this estimate. These figures were then multiplied by the number of jobs created and retained by each company project. These totals were multiplied by 3.07%, which is Pennsylvania’s flat personal income tax rate. For each new job created by successful projects, it was estimated that another 1.5 jobs were supported (based on data provided by Select Greater Philadelphia and the Greater Philadelphia Chamber of Commerce). Since specific SOC codes could not be determined, median wage data across all industries was used in the calculations for the same years as the direct jobs calculations.

Important Note: No method is available to calculate increased corporate business taxes (CNI, property tax, sales tax) as a result of these successful foreign investment projects, so the tax impact numbers provided here most likely underestimate the actual tax impact of OIBD’s Center for Direct Investment.

3. Return on Investment (ROI)

The ROI for the World Trade PA program is calculated as ((total export assisted sales + total capital investment + total est. tax revenue) – total budget)/total budget, and is expressed as a ratio.

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