IDEAS home Printed from https://ideas.repec.org/p/wiw/wiwrsa/ersa06p854.html

Agro-Food Dynamics in a Region's Growth

Author

Listed:
  • Anastasios Michailidis

  • Efstratios Loizou

  • Konstadinos Mattas

  • Aikaterini Melfou

Abstract

Regional development depends highly in the allocation of developing funds -through development policies- among the various sectors of regional economies. In order to safeguard the most efficient use of investments analytical tools visualizing the economy as a whole in the form of a general equilibrium should be adopted. In this paper the role of agro-food sectors and agriculture in regional economic growth is examined. Despite the diminishing contribution of agriculture and agro-food sectors in the formation of an economy’s gross output and employment, their indirect influence upon the rest of the economy most of the times is not completely cast up. It is evidence that over the last two decades the share of agriculture in Greece’s GDP is substantially dropped. This fact many times used as a guide to support decisions in directing regional developing funds far from agriculture. On the other side, food sector’s share in processing industries is growing and its contribution and interrelation with other sectors has not been well assessed. Thus in the present paper, the indirect contribution of agro-food sectors in a region’s economy is measured and compared to non-agricultural sectors. Linkage relationships and interdependencies between food and non-food sectors are sought and their role in strengthening the regions growth is contemplated. The identification of such relationships is very important, as the path to development in some regions is very sensitive to sectoral interdependencies. To accomplish the aforementioned objectives, an Input-Output framework was employed in a regional level (Thessalia, Greece). Utilizing an employment based Location Quotient (LQ), developed by Flegg et al (1995) -the FLQ- the national I-O table is regionalized for the Greek (NUTS 2) region. The regionalization procedure was performed by following the hybrid GRIT technique. Employing the regional I-O table, linkage coefficients, that identify the dynamics of key sectors, were estimated. In addition the regional output generated due to food sector and non-food sector activity traced out to compare the relative dynamics. Results clearly demonstrate that the nexus of food non-food sectors is determinant in regional growth plans and the particular interdependencies, in every particular region, must carefully considered.

Suggested Citation

  • Anastasios Michailidis & Efstratios Loizou & Konstadinos Mattas & Aikaterini Melfou, 2006. "Agro-Food Dynamics in a Region's Growth," ERSA conference papers ersa06p854, European Regional Science Association.
    • Handle: RePEc:wiw:wiwrsa:ersa06p854
    as

    Download full text from publisher

    File URL: https://www-sre.wu.ac.at/ersa/ersaconfs/ersa06/papers/854.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bairak, Roman I. & Hughes, David W., 1996. "Evaluating the Impacts of Agricultural Exports on a Regional Economy," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 28(2), pages 393-407, December.
    2. Baumol, William J. & Wolff, Edward N., 1994. "A key role for input-output analysis in policy design," Regional Science and Urban Economics, Elsevier, vol. 24(1), pages 93-113, February.
    3. A. T. Flegg & C. D. Webber, 2000. "Regional Size, Regional Specialization and the FLQ Formula," Regional Studies, Taylor & Francis Journals, vol. 34(6), pages 563-569.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Loizou, Efstratios & Karelakis, Christos & Galanopoulos, Konstantinos & Mattas, Konstadinos, 2019. "The role of agriculture as a development tool for a regional economy," Agricultural Systems, Elsevier, vol. 173(C), pages 482-490.
    2. Loizou, Efstratios & Mattas, Konstadinos & Rozakis, Stelios & Tzouvelekas, Vangelis, "undated". "Policy Decisions Evaluation in Agriculture Employing Input-Output Techniques: The Case of Tobacco Sector Regime Reform," 89th Seminar, February 2-5, 2005, Parma, Italy 234614, European Association of Agricultural Economists.
    3. Zheng LU & Xiang DENG, 2017. "Regional Specialization: New Methods Of Measurement And The Trends In China 1987-2007," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 119-134.
    4. Baldassarre,Alessio & Calà,Valerio Ferdinando & Carullo,Danilo & Dudu,Hasan & Fusco,Elisa Marie & Giacobbe,Pasquale & Orecchia,Carlo, 2023. "Simulating the Effect of Business Tax Abolition through a New Regional CGE Model : Evidencefrom Italy," Policy Research Working Paper Series 10387, The World Bank.
    5. Kowalewski, Julia, 2012. "Inter-industrial relations and sectoral employment development in German regions," HWWI Research Papers 127, Hamburg Institute of International Economics (HWWI).
    6. Elias Giannakis, 2010. "An input-output approach in assessing the impact of extensive versus intensive farming systems on rural development: the case of Greece," Working Papers 2010-01, Agricultural University of Athens, Department Of Agricultural Economics.
    7. Thomas Rutherford & Hannu Torma†, 2010. "Efficiency of Fiscal Measures in Preventing Out-migration from North Finland," Regional Studies, Taylor & Francis Journals, vol. 44(4), pages 465-475.
    8. Gunnar Lindberg, 2011. "On the appropriate use of (input-output) coefficients to generate non-survey regional input-output tables: Implications for the determination of output multipliers," ERSA conference papers ersa10p800, European Regional Science Association.
    9. Tobias Kronenberg, 2012. "Regional input-output models and the treatment of imports in the European System of Accounts (ESA)," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 32(2), pages 175-191, September.
    10. Dudu, Hasan & Cakmak, Erol H., 2011. "Climate Change and Agriculture: An Integrated Approach to Evaluate Economy-wide Effects for Turkey1," 2011 Conference: Impacts of Climate Change on Agriculture, December 6-7, 2011, Rabat, Morocco 188122, Moroccan Association of Agricultural Economics (AMAEco).
    11. Andrea BONFIGLIO, 2005. "Ca Non-survey Methods Substitute for Survey-based Models ? A Performance Analysis of Indirect Techniques of Estimating I-O Coefficients and Multipliers," Working Papers 230, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    12. Lu, Zheng & Flegg, A.Tony & Deng, Xiang, 2011. "Regional specialization: a measure method and the trends in China," MPRA Paper 33867, University Library of Munich, Germany.
    13. Joana Chapa Cantú & Javier Oyakawa Nakamoto, 2016. "Impactos Económicos Regionales del “Shale Gas” en la Reforma Energética de México," Working Papers 72, Peruvian Economic Association.
    14. Kronenberg, Tobias, 2011. "Regional input-output models and the treatment of imports in the European System of Accounts," MPRA Paper 30797, University Library of Munich, Germany.
    15. Andrea BONFIGLIO, 2008. "Evaluating Implications of Agricultural Policies in a Rural Region through a CGE Analysis," Working Papers 328, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    16. Kowalewski Julia, 2013. "Inter-industrial Relations and Sectoral Employment Development in German Regions," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(4), pages 486-504, August.
    17. Lee, Taihyeong & Mokhtarian, Patricia L, 2004. "An Input-Output Analysis of the Relationships between Communications and Travel for Industry," Institute of Transportation Studies, Working Paper Series qt09n3d2k1, Institute of Transportation Studies, UC Davis.
    18. Kronenberg, Tobias & Többen, Johannes, 2011. "Regional input-output modelling in Germany: The case of North Rhine-Westphalia," MPRA Paper 35494, University Library of Munich, Germany.
    19. Timo Tohmo, 2025. "The KFLQ revisited: estimating regional input–output tables for regions in South Korea," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(1), pages 1-24, March.
    20. Zawalinska, Katarzyna, "undated". "Evaluation of rural development programs after Poland’s accession to the EU: regional CGE approach," 2009 Conference, August 16-22, 2009, Beijing, China 51342, International Association of Agricultural Economists.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa06p854. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gunther Maier (email available below). General contact details of provider: http://www.ersa.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.