Input-output studies of agriculture in regional economy — some problems of method

Ewa Rablnowicz

European Review of Agricultural Economics, 1982, vol. 9, issue 1, 87-101

Abstract: The object of the study was to analyse the impact of agriculture on regional employment. This was done as part of a more general project concerning the effects of structural changes in agriculture on a regional economy. An input-output study of a small region was performed. The objectives of the investigation were to examine the applicability of the input-output method in the analysis of small regions and to test the hypothesis that agriculture is more integrated into the local economy than other sectors. The hypothesis has been verified, but the intensity of the relationships proved to be weaker than expected. Although input-output analysis affords a good general view of the functioning of the economy in a small region, the application of the method for this purpose raises many difficulties. In particular, the interpretation of the multiplier for the agricultural processing industry creates problems. In the continuation of the study, the following questions were discussed: relationship between the value of the multiplier for agriculture and the size of the region, distribution of indirect effects within a bigger region and stability of the coefficients over a longer period of time.

Date: 1982
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