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Impacts of Organic Food Agritourism on a Small Rural Economy: A Social Accounting Matrix Approach

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  • Mansury, Yuri
  • Hara, Tadayuki

Abstract

The U.S. organic food market recently experienced a rapid expansion, and yet this in-dustry‟s potential to promote economic development remains largely unexplored. This paper proposes the introduction of organic-food agritourism as a sustainable development strategy for a distressed rural community. In contrast to conventional impact studies that emphasize final demand shocks, this study examines the impact of higher regional purchase coefficients (RPCs) based on the hypothesis that agritourism promotion will attract nature-oriented tour-ists inclined to spend more on organic produce. Using a social accounting matrix (SAM) model, we found that a successful campaign to promote organic agriculture not only is ex-pected to deliver higher production output, but also generates a more egalitarian distribution of income.

Suggested Citation

  • Mansury, Yuri & Hara, Tadayuki, 2007. "Impacts of Organic Food Agritourism on a Small Rural Economy: A Social Accounting Matrix Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(3), pages 1-10.
    • Handle: RePEc:ags:jrapmc:132992
    DOI: 10.22004/ag.econ.132992
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    References listed on IDEAS

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    6. Govindasamy, Ramu & Italia, John, 1999. "Predicting Willingness-To-Pay A Premium For Organically Grown Fresh Produce," Journal of Food Distribution Research, Food Distribution Research Society, vol. 30(2), pages 1-10, July.
    7. Pyatt, F Graham & Round, Jeffery I, 1979. "Accounting and Fixed Price Multipliers in a Social Accounting Matrix Framework," Economic Journal, Royal Economic Society, vol. 89(356), pages 850-873, December.
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    1. Mohd Nor, Norma Azuli & Mohd Salleh, Norlida Hanim & Falatehan, A Faroby, 2021. "The Effect of Tourism Expenditure on the Economy: A New Evidence," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 55(3), pages 23-34.
    2. Khanal, Aditya & Mishra, Ashok, 2015. "Interlinked diversification strategies: Evidence from farm business households," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196977, Southern Agricultural Economics Association.
    3. Das, Biswa R. & Rainey, Daniel V. & Miller, Wayne P., 2009. "Spatial Variability of Economic Impacts: Examining a Hypothetical Retiree In-migration Policy," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(1), pages 1-14.
    4. Dries, Liesbeth & Pascucci, Stefano & Gardebroek, Cornelis, 2011. "Pluriactivity in Italian Agriculture: Are Farmers Using Interlinked Strategies?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114429, European Association of Agricultural Economists.

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