The Spatial Diffusion of Secondary Impacts: Rural-Urban Spillovers in Grampian, Scotland
The paper analyzes rural-urban spillover effects using a bi-regional SAM model which allows for flows of commodities and factor incomes between the two areas. Multiplier decomposition is used to investigate the nature of spillovers. The results indicate stronger spillover effects from urban to rural Grampian, than viceversa. In contrast, results from a restricted, input output version of the model suggest that the effects are more consistent with nodal response. Input-output an alysem say produce biased results and studies of contemporary rural-urban relationships should look beyond production linkages to the broader range of relationships within a SAM framework
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