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The Economic Base of Rural Areas: A SAM-Based Analysis of the Western Isles, 1997

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  • Deborah Roberts

    (The Arkleton Centre for Rural Development Research, St Mary's, King's College, Aberdeen AB24 3UF, Scotland)

Abstract

A model based on social accounting techniques is used to quantify the relative importance of traditional and nontraditional elements of the economic base of rural areas. Empirical analysis is focused on the Western Isles, Scotland. The results highlight the importance of central government funding of public services. They also indicate that exogenous transfers of income direct to households support 8% of jobs and 7% of factor earnings in the region. It is argued that, in addition to industry structure and input–output linkages, rural economic-base multipliers depend on the demographic profile of the local population and the extent of interdependencies between local production and consumption.

Suggested Citation

  • Deborah Roberts, 2003. "The Economic Base of Rural Areas: A SAM-Based Analysis of the Western Isles, 1997," Environment and Planning A, , vol. 35(1), pages 95-111, January.
    • Handle: RePEc:sae:envira:v:35:y:2003:i:1:p:95-111
    DOI: 10.1068/a3580
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    References listed on IDEAS

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    1. Garcia-Mila, Teresa & McGuire, Therese J., 1993. "Industrial mix as a factor in the growth and variability of states' economies," Regional Science and Urban Economics, Elsevier, vol. 23(6), pages 731-748, December.
    2. Waters, Edward C. & Weber, Bruce A. & Holland, David W., 1999. "The Role Of Agriculture In Oregon'S Economic Base: Findings From A Social Accounting Matrix," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-15, July.
    3. Cromartie, John B. & Nord, Mark, 1996. "Migration and Economic Restructuring in Nonmetro America, 1989-94," Staff Reports 278813, United States Department of Agriculture, Economic Research Service.
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    1. Burrell, A., 2011. "Is it becoming more difficult to research EU agricultural sector policies?," Proceedings “Schriften der Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.”, German Association of Agricultural Economists (GEWISOLA), vol. 46, March.
    2. Nesse, Katherine, 2014. "Expanding the Economic Base Model to Include Nonwage Income," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 44(2).
    3. 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.
    4. Kristinn Hermannsson, 2016. "Beyond Intermediates: The Role of Consumption and Commuting in the Construction of Local Input–Output Tables," Spatial Economic Analysis, Taylor & Francis Journals, vol. 11(3), pages 315-339, July.

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