DIVERSIFICATION VS. SPECIALIZATION
ECONOMIC LANDSCAPE
30
T
he following chart shows the distributions of those 21 industry sectors of the five
metro areas by their output or contribution to Gross Regional Product (GRP). The
significance of the oil and gas extraction in Corpus Christi and Laredo (shown in red)
is apparent. In 2014, the mining sector contributed to about 8 percent of the total income
earned in those two metro areas.
The government sector is a major income generator in South Texas metro areas,
contributing to more than one-fifth of all incomes earned in Brownsville, Laredo and McAllen.
Despite its military base, Corpus Christi has the smallest share of the public sector. On the
other hand, its manufacturing sector is the largest income generator in South Texas.
Gross Regional Product, 2014
Source: EMSI.
Not all employees bring the same amount of output or income to the local economy. As a
result, the distributions of local industries by employment, as shown in the chart below, differ
substantially from the distributions by GRP. In the chart of employment distributions, the
government, retail, accommodation and food services, and health care sectors stand out as the
major sectors. Other than the government sector, those private industries contribute less to GRP
relative to employment in the area economies.
Annual Review of South Texas Economy