The regional economy of Central Macedonia: an application of the social accounting matrix

Purpose - The economic and social problems, including high unemployment, facing the Greek economy in recent years are substantial. The role of the agri-food sector and agriculture in dealing with unemployment is a concern. To support the agricultural economy, a Common Agricultural Policy (CAP) 2007–2014 was adopted and implemented in the EU Member States. However, boosting employment, in the industry itself and indirectly in the economy, has almost never been a key goal of any policy. The purpose of this paper is to examine the role of the CAP 2014–2020 in maintaining and enhancing employment and income distribution in the region of Central Macedonia. Design/methodology/approach - The authors used the regional social accounting matrix (SAM), which examines the depiction of the interconnections between the sectors of economic activity and local economy (households, businesses, public) but also interconnections and transactions with the rest of the world. The SAM presents a more complete picture of the economic figures of the region, evaluating the interconnections of cross-sectoral relations and the implemented policies, both in the production sectors and in the regional society. Findings - For the Central Macedonia region, the agricultural sector is a key player, holding a regulatory role for regional economic viability, and shows marked connections with the other industry branches of the region. Originality/value - The new CAP 2014–2020 through Pillar 2–Rural Development may reinforce the new role of the industry in terms of the environment, integrated rural development and social structure of rural areas, ensuring coherence.