IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i9p3524-d350331.html
   My bibliography  Save this article

The Multiplier Effects of Food Relocalization: A Systematic Review

Author

Listed:
  • Zsófia Benedek

    (Centre for Economic and Regional Studies, H-1097 Budapest, Hungary)

  • Imre Fertő

    (Centre for Economic and Regional Studies, H-1097 Budapest, Hungary
    Institute of Marketing and Management, Kaposvár University, H-7400 Kaposvár, Hungary)

  • Viktória Szente

    (Institute of Marketing and Management, Kaposvár University, H-7400 Kaposvár, Hungary)

Abstract

Background: The purchase of local food is often argued to stimulate local economies through multiplier effects; this argument is questioned in this paper. Methods: The ScienceDirect, Wiley Online Library, Taylor and Francis Online, SpringerLink, AgECON, and Emerald databases were searched systematically. A complementary search in Google Scholar was also carried out. Peer-reviewed studies published between 2000 and 2019 were identified using multiple search terms. Data about four types of multipliers (output, employment, income, and value-added multipliers) were extracted. Results: Twenty-four papers fit the criteria, allowing for a qualitative assessment only. Sixteen papers found unambiguously that an increase in demand for local food had a directly positive impact on local economies in some way; one paper found no impact at all. The papers were classified into three groups based on their focal areas: marketing channel-focused, farm enterprise-focused, and scenario/impact analysis-focused studies. In terms of the methods of analysis, three major approaches were identified: input–output models, assessments of descriptive statistics, and econometric analyses. Considerations related to the potential overestimation of current approaches are presented. Conclusions: The existence of employment and income multipliers seems to be more evident, while the impacts of output- and value-added multipliers depend more on the actual context. Research gaps are also identified.

Suggested Citation

  • Zsófia Benedek & Imre Fertő & Viktória Szente, 2020. "The Multiplier Effects of Food Relocalization: A Systematic Review," Sustainability, MDPI, vol. 12(9), pages 1-18, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:9:p:3524-:d:350331
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/9/3524/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/9/3524/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kinnaman, Thomas C., 2011. "The economic impact of shale gas extraction: A review of existing studies," Ecological Economics, Elsevier, vol. 70(7), pages 1243-1249, May.
    2. Iryna Printezis & Carola Grebitus & Stefan Hirsch, 2019. "The price is right!? A meta-regression analysis on willingness to pay for local food," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-23, May.
    3. Jane Ricketts Hein & Brian Ilbery & Moya Kneafsey, 2006. "Distribution of local food activity in England and Wales: An index of food relocalization," Regional Studies, Taylor & Francis Journals, vol. 40(3), pages 289-301.
    4. Cheryl Brown & Stacy Miller, 2008. "The Impacts of Local Markets: A Review of Research on Farmers Markets and Community Supported Agriculture (CSA)," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 90(5), pages 1298-1302.
    5. Hodges, Alan W. & Stevens, Thomas J. & Wysocki, Allen F., 2014. "Local and Regional Food Systems in Florida: Values and Economic Impacts," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(2), pages 285-298, May.
    6. Steven C. Deller & David Lamie & Maureen Stickel, 2017. "Local foods systems and community economic development," Community Development, Taylor & Francis Journals, vol. 48(5), pages 612-638, October.
    7. Martinez, Stephen W. & Hand, Michael S. & Da Pra, Michelle & Pollack, Susan L. & Ralston, Katherine L. & Smith, Travis A. & Vogel, Stephen J. & Clark, Shellye & Lohr, Luanne & Low, Sarah A. & Newman, , 2010. "Local Food Systems: Concepts, Impacts, and Issues," Economic Research Report 96635, United States Department of Agriculture, Economic Research Service.
      • Martinez, Steve & Hand, Michael & Da Pra, Michelle & Pollack, Susan & Ralston, Katherine & Smith, Travis & Vogel, Stephen & Clarke, Shellye & Lohr, Luanne & Low, Sarah & Newman, Constance, 2010. "Local food systems: concepts, impacts, and issues," MPRA Paper 24313, University Library of Munich, Germany.
    8. Joshua Sbicca, 2015. "Food labor, economic inequality, and the imperfect politics of process in the alternative food movement," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 32(4), pages 675-687, December.
    9. Phil Mount, 2012. "Growing local food: scale and local food systems governance," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 29(1), pages 107-121, March.
    10. Helen Scharber & Anita Dancs, 2016. "Do locavores have a dilemma? Economic discourse and the local food critique," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 33(1), pages 121-133, March.
    11. Moya Kneafsey & Laura Venn & Ulrich Schmutz & Balász Bálint & Liz Trenchard & Trish Eyden-Woods & Elizabeth Bos & Gemma Sutton & Matthew Blackett, 2013. "Short Food Supply Chains and Local Food Systems in the EU. A State of Play of their Socio-Economic Characteristics," JRC Research Reports JRC80420, Joint Research Centre.
    12. Todd M. Schmit & Becca B. R. Jablonski & Yuri Mansury, 2016. "Assessing the Economic Impacts of Local Food System Producers by Scale," Economic Development Quarterly, , vol. 30(4), pages 316-328, November.
    13. Hingley, Martin & Boone, Julie & Haley, Simon, 2010. "Local Food Marketing: Factors for Growth of Small Agri‐food Businesses in the UK," 2010 International European Forum, February 8-12, 2010, Innsbruck-Igls, Austria 100458, International European Forum on System Dynamics and Innovation in Food Networks.
    14. Mary Beckie & Emily Kennedy & Hannah Wittman, 2012. "Scaling up alternative food networks: farmers’ markets and the role of clustering in western Canada," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 29(3), pages 333-345, September.
    15. repec:cup:jagaec:v:40:y:2008:i:1:p:253-265_5 is not listed on IDEAS
    16. Hodges, Alan W. & Stevens, Thomas J. & Wysocki, Allen F., 2014. "Local and Regional Food Systems in Florida: Values and Economic Impacts," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(2), pages 1-14, May.
    17. Jason P. Brown & Stephan J. Goetz & Mary C. Ahearn & Chyi-lyi (Kathleen) Liang, 2014. "Linkages Between Community-Focused Agriculture, Farm Sales, and Regional Growth," Economic Development Quarterly, , vol. 28(1), pages 5-16, February.
    18. Clare Gupta & Tamar Makov, 2017. "How global is my local milk? Evaluating the first-order inputs of “local” milk in Hawai‘i," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 34(3), pages 619-630, September.
    19. Hughes, David W. & Brown, Cheryl & Miller, Stacy & McConnell, Tom, 2008. "Evaluating the Economic Impact of Farmers' Markets Using an Opportunity Cost Framework," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 253-265, April.
    20. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    21. Dayton Lambert & Tim Wojan & Patrick Sullivan, 2009. "Farm Business and Household Expenditure Patterns and Local Communities: Evidence from a National Farm Survey," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 604-626, September.
    22. Hughes, David W. & Isengildina-Massa, Olga, 2015. "The economic impact of farmers’ markets and a state level locally grown campaign," Food Policy, Elsevier, vol. 54(C), pages 78-84.
    23. David Moher & Alessandro Liberati & Jennifer Tetzlaff & Douglas G Altman & The PRISMA Group, 2009. "Preferred Reporting Items for Systematic Reviews and Meta-Analyses: The PRISMA Statement," PLOS Medicine, Public Library of Science, vol. 6(7), pages 1-6, July.
    24. Zsófia Benedek & Imre Fertő & Adrienn Molnár, 2018. "Off to market: but which one? Understanding the participation of small-scale farmers in short food supply chains—a Hungarian case study," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 35(2), pages 383-398, June.
    25. Henneberry, Shida Rastegari & Whitacre, Brian E. & Agustini, Haerani N., 2009. "An Evaluation of the Economic Impacts of Oklahoma Farmers Markets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 40(3), pages 1-15, November.
    26. Brown, Jason P. & Pender, John & Wiser, Ryan & Lantz, Eric & Hoen, Ben, 2012. "Ex post analysis of economic impacts from wind power development in U.S. counties," Energy Economics, Elsevier, vol. 34(6), pages 1743-1754.
    27. Willis, David B. & Carpio, Carlos E. & Boys, Kathryn A., 2016. "Supporting Local Food System Development Through Food Price Premium Donations: A Policy Proposal," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 48(2), pages 192-217, May.
    28. Hughes, David W., 2003. "Policy Uses of Economic Multiplier and Impact Analysis," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 18(2), pages 1-6.
    29. Miller, Steven R. & Mann, John & Barry, Judith & Kalchik, Tom & Pirog, Rich & Hamm, Michael W., 2015. "A Replicable Model For Valuing Local Food Systems," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 47(4), pages 441-461, November.
    30. Misdawita & Djoni Hartono & Anda Nugroho, 2019. "Impacts Of Food Prices On The Economy: Social Accounting Matrix And Microsimulation Approach In Indonesia," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 31(1-2), pages 137-154, March.
    31. Jablonski, B. B. R. & Schmit, T. M. & Kay, D., 2016. "Assessing the Economic Impacts of Food Hubs on Regional Economies: A Framework that Includes Opportunity Cost," Agricultural and Resource Economics Review, Cambridge University Press, vol. 45(1), pages 143-172, April.
    32. Watson, Philip & Cooke, Stephen & Kay, David & Alward, Greg & Morales, Alfonso, 2017. "A Method for Evaluating the Economic Contribution of a Local Food System," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(2), May.
    33. Joanita Kataike & Xavier Gellynck, 2018. "22 Years of Governance Structures and Performance: What Has Been Achieved in Agrifood Chains and Beyond? A Review," Agriculture, MDPI, vol. 8(4), pages 1-32, March.
    34. Giaime Berti & Catherine Mulligan, 2016. "Competitiveness of Small Farms and Innovative Food Supply Chains: The Role of Food Hubs in Creating Sustainable Regional and Local Food Systems," Sustainability, MDPI, vol. 8(7), pages 1-31, July.
    35. repec:bla:devpol:v:24:y:2006:i:5:p:601-624 is not listed on IDEAS
    36. Poulsen, Melissa N. & McNab, Philip R. & Clayton, Megan L. & Neff, Roni A., 2015. "A systematic review of urban agriculture and food security impacts in low-income countries," Food Policy, Elsevier, vol. 55(C), pages 131-146.
    37. Hingley, Martin & Boone, Julie & Haley, Simon, 2010. "Local Food Marketing as a Development Opportunity for Small UK Agri-Food Businesses," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 1(3), pages 1-10, October.
    38. Emilia Schmitt & Daniel Keech & Damian Maye & Dominique Barjolle & James Kirwan, 2016. "Comparing the Sustainability of Local and Global Food Chains: A Case Study of Cheese Products in Switzerland and the UK," Sustainability, MDPI, vol. 8(5), pages 1-20, April.
    39. Rossi, James D. & Johnson, Thomas G. & Hendrickson, Mary, 2017. "The Economic Impacts Of Local And Conventional Food Sales," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 49(4), pages 555-570, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gréta Maró & Péter Czine & Zalán Márk Maró & Áron Török, 2022. "Eliciting University Students’ Attitudes towards Farmers’ Markets: The Hungarian Case," Sustainability, MDPI, vol. 14(24), pages 1-16, December.
    2. Dagmar Škodová Parmová & Jana Novotná, 2022. "Implementation of quality improvements and innovations in agricultural enterprises," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 68(6), pages 207-218.
    3. Alexandra Doernberg & Annette Piorr & Ingo Zasada & Dirk Wascher & Ulrich Schmutz, 2022. "Sustainability assessment of short food supply chains (SFSC): developing and testing a rapid assessment tool in one African and three European city regions," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 39(3), pages 885-904, September.
    4. Davor Mikulić & Željko Lovrinčević & Damira Keček, 2023. "Economic effects of food supply chain re-localization on the Croatian economy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-26, December.
    5. Konrád Kiss & Csaba Ruszkai & Antónia Szűcs & Gábor Koncz, 2020. "Examining the Role of Local Products in Rural Development in the Light of Consumer Preferences—Results of a Consumer Survey from Hungary," Sustainability, MDPI, vol. 12(13), pages 1-24, July.
    6. Reinecke, Sven & Renner, Susanna, 2021. ""Rückbesinnung auf das Echte" - Veränderungen im Kundenverhalten, Trends und Herausforderungen in Marketing und Verkauf ab 2021," Marketing Review St.Gallen, Universität St.Gallen, Institut für Marketing und Customer Insight, vol. 38(5), pages 52-59.
    7. Salvatore Ammirato & Alberto Michele Felicetti & Massimiliano Ferrara & Cinzia Raso & Antonio Violi, 2021. "Collaborative Organization Models for Sustainable Development in the Agri-Food Sector," Sustainability, MDPI, vol. 13(4), pages 1-22, February.

    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. Enthoven, Laura & Van den Broeck, Goedele, 2021. "Local food systems: Reviewing two decades of research," Agricultural Systems, Elsevier, vol. 193(C).
    2. Davor Mikulić & Željko Lovrinčević & Damira Keček, 2023. "Economic effects of food supply chain re-localization on the Croatian economy," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 11(1), pages 1-26, December.
    3. Eduardo Malagon-Zaldua & Mirene Begiristain-Zubillaga & Aintzira Onederra-Aramendi, 2018. "Measuring the Economic Impact of Farmers’ Markets on Local Economies in the Basque Country," Agriculture, MDPI, vol. 8(1), pages 1-14, January.
    4. Becca B.R. Jablonski & Allison Bauman & Dawn Thilmany, 2021. "Local Food Market Orientation and Labor Intensity," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 43(3), pages 916-934, September.
    5. Gupta, Clare & Jablonski, Becca B.R., 2016. "Farm Impacts of Farm-to-Grocer Sales: The Case of Hawai’i," Journal of Food Distribution Research, Food Distribution Research Society, vol. 47(3), pages 1-23, November.
    6. Phillip Warsaw & Steven Archambault & Arden He & Stacy Miller, 2021. "The Economic, Social, and Environmental Impacts of Farmers Markets: Recent Evidence from the US," Sustainability, MDPI, vol. 13(6), pages 1-18, March.
    7. Patrick Mundler & Sophie Laughrea, 2015. "Circuits alimentaires de proximité - Quels bénéfices pour le développement des territoires? Étude de cas dans trois territoires québécois," CIRANO Project Reports 2015rp-21, CIRANO.
    8. Marilyn Sitaker & Jane Kolodinsky & Weiwei Wang & Lisa C. Chase & Julia Van Soelen Kim & Diane Smith & Hans Estrin & Zoe Van Vlaanderen & Lauren Greco, 2020. "Evaluation of Farm Fresh Food Boxes: A Hybrid Alternative Food Network Market Innovation," Sustainability, MDPI, vol. 12(24), pages 1-25, December.
    9. Jason Winfree & Philip Watson, 2021. "Buy Local and Social Interaction," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(4), pages 1454-1477, August.
    10. Hughes, David W. & Isengildina-Massa, Olga, 2015. "The economic impact of farmers’ markets and a state level locally grown campaign," Food Policy, Elsevier, vol. 54(C), pages 78-84.
    11. Giaime Berti, 2020. "Sustainable Agri-Food Economies: Re-Territorialising Farming Practices, Markets, Supply Chains, and Policies," Agriculture, MDPI, vol. 10(3), pages 1-9, March.
    12. Victoria Morckel & Kathryn Colasanti, 2018. "Can Farmers’ Markets in Shrinking Cities Contribute to Economic Development? A Case Study from Flint, Michigan," Sustainability, MDPI, vol. 10(6), pages 1-15, May.
    13. Konrád Kiss & Csaba Ruszkai & Antónia Szűcs & Gábor Koncz, 2020. "Examining the Role of Local Products in Rural Development in the Light of Consumer Preferences—Results of a Consumer Survey from Hungary," Sustainability, MDPI, vol. 12(13), pages 1-24, July.
    14. Virginie Baritaux & Carole Chazoule, 2018. "Légitimité et positionnement des marchés de gros dans les dynamiques de relocalisation de l’alimentation : les cas du marché de Lyon Corbas et du MIN de Grenoble," Post-Print hal-03122984, HAL.
    15. Jablonski, B.B.R. & Schmit, T.M., 2014. "‘Local’ Producers’ Production Functions and Their Importance in Estimating Economic Impacts," Working Papers 180117, Cornell University, Department of Applied Economics and Management.
    16. Giaime Berti & Catherine Mulligan, 2016. "Competitiveness of Small Farms and Innovative Food Supply Chains: The Role of Food Hubs in Creating Sustainable Regional and Local Food Systems," Sustainability, MDPI, vol. 8(7), pages 1-31, July.
    17. Fernianda Rahayu Hermiatin & Yuanita Handayati & Tomy Perdana & Dadan Wardhana, 2022. "Creating Food Value Chain Transformations through Regional Food Hubs: A Review Article," Sustainability, MDPI, vol. 14(13), pages 1-24, July.
    18. Jeffrey K. O'Hara & Nony Dutton & Nick Stavely, 2022. "The influence of farmers markets' characteristics on vendor sales," Agribusiness, John Wiley & Sons, Ltd., vol. 38(2), pages 295-311, April.
    19. Watson, Philip & Cooke, Stephen & Kay, David & Alward, Greg & Morales, Alfonso, 2017. "A Method for Evaluating the Economic Contribution of a Local Food System," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(2), May.
    20. Murakami, Tomoaki & Nakajima, Shinsaku & Takahashi, Taro & Nishihara, Yukinaga & Imai, Asako & Kikushima, Ryousuke & Sato, Takeshi, 2014. "Spatially Varying Impacts of Farmers Markets on Agricultural Land Use," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170668, Agricultural and Applied Economics Association.

    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:gam:jsusta:v:12:y:2020:i:9:p:3524-:d:350331. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.