Calculating Total Effects Accurately in SEM

[Taka Sakamoto]

I would like to make sure that I correctly calculate total effects as well as direct and indirect effects from a path analysis model. I would be grateful if you could help me go in the right direction. The path analysis model I work with is shown below.

If it weren’t for the variable SocialMarketEconomy, the total effects running from PovertyRates to GDPgrowth are: a*b + d*e + c. --> (1)

What I am not confident about is the total effects running from SocialMarketEconomy to GDPgrowth via PovertyRates. Is it the following?:

i*b + f*e + g + h*a*b + h*c + h*d*e --> (2)

The first thing I would like to make sure is that I correctly understand the paths from SocialMarketEconomy to GDPgrow.

Second, am I correct to think that in the presence of the effects (paths) from SocialMarketEconomy, the first total as well as indirect effects I write up (1) are not correct?

I would like to understand this, so any help would be welcome.

Thank you in advance for your kind help.

Best,

Taka