Management Theory and Studies for Rural Business and Infrastructure Development, Volume 22

Contributions of lfa agriculture to the Scottish economy: a sam based analysis of intersectoral linkages

Gerald Schwarz

Abstract

The main objective of the paper is to quantify the contribution of LFA farm types to the
Scottish economy and to evaluate their economic linkages and multiplier effects. To achieve this
objective, a SAM has been applied to quantify the contributions of LFA farm types to the Scottish
economy and to analyse the economic linkages of LFA agriculture with other sectors in the
Scottish economy. The dependencies of Scottish agriculture on LFA farming and the linkages
with other sectors in the wider Scottish economy indicate that potential implications of future
LFA policy changes would go beyond LFA farming and have a stronger impact on the rural economy.
The removal of current financial support for LFA farming would also affect a range of other
farming-related sectors leading to reductions in output and employment in a range of upstream
and downstream sectors. The analysis indicates that animal feeds, fertilisers, veterinary services
as well as the meat processing sector are amongst the most affected sectors of any future
LFA policy changes.

Keyword(s): agriculture, less favoured areas, social accounting matrix


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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.