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Farm Tourism and Spatial Competition

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  • Andersson, Hans
  • Hoffmann, Ruben

Abstract

Changes in EU agricultural policies towards an increased focus on rural development issues raise questions regarding the economic impact of local and regional spatial competition. Farmers are typically price takers in the traditional markets for the major agricultural products. This is, however, not necessarily the case for “new enterprises” active in local and regional markets. This paper examines local/regional spatial competition for farm tourism. A spatial econometrics framework is applied to a hedonic pricing model. It is shown that spatial dependence affects the pricing of both Self-catering and Bed & Breakfast. However, the results indicate that local/regional competition may have a positive effect on the former but a negative effect on the latter. The findings illustrate the potential importance of local competition for rural developments studies.

Suggested Citation

  • Andersson, Hans & Hoffmann, Ruben, 2008. "Farm Tourism and Spatial Competition," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44417, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae08:44417
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    File URL: http://purl.umn.edu/44417
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    References listed on IDEAS

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    1. Anat Tchetchik & Aliza Fleischer & Israel Finkelshtain, 2008. "Differentiation and Synergies in Rural Tourism: Estimation and Simulation of the Israeli Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(2), pages 553-570.
    2. Asplund, Marcus & Sandin, Rickard, 1999. "Competition in interrelated markets: An empirical study," International Journal of Industrial Organization, Elsevier, pages 353-369.
    3. Cropper, Maureen L & Deck, Leland B & McConnell, Kenneth E, 1988. "On the Choice of Functional Form for Hedonic Price Functions," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 668-675, November.
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    Keywords

    farm tourism; spatial competition; rural development; Community/Rural/Urban Development;

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