Impact of Organic Food Agritourism on a Small Rural Economy: A Social Accounting Matrix Approach

23 Pages Posted: 2 Jan 2007

See all articles by Yuri Mansury

Yuri Mansury

KDI School of Public Policy and Management

Tad Hara

University of Central Florida - Rosen College

Date Written: October 2006

Abstract

The U.S. organic food market recently experienced a rapid expansion, and yet this industry's potential to promote economic development remains largely unexplored. This paper proposes the introduction of organic-food agritourism as a sustainable development strategy for a distressed rural community. In contrast to conventional impact studies that emphasize final demand shocks, this study examines the impact of higher regional purchase coefficients (RPCs) based on the hypothesis that agritourism promotion will attract nature-oriented tourists inclined to spend more on organic produce. Using a social accounting matrix (SAM) model, we found that a successful campaign to promote organic agriculture not only delivers higher production output, but also generates a more egalitarian distribution of income.

Keywords: Social Accounting Matrix, Regional Impact Analysis, Rural Development

JEL Classification: C68, O19

Suggested Citation

Mansury, Yuri and Hara, Tadayuki, Impact of Organic Food Agritourism on a Small Rural Economy: A Social Accounting Matrix Approach (October 2006). Available at SSRN: https://ssrn.com/abstract=954331 or http://dx.doi.org/10.2139/ssrn.954331

Yuri Mansury (Contact Author)

KDI School of Public Policy and Management ( email )

263 Namsejong-ro
Sejong-si 30149
Korea, Republic of (South Korea)

Tadayuki Hara

University of Central Florida - Rosen College ( email )

9907 Universal Blvd
Orlando, FL 32819-8701
United States
1-407-903-8174 (Phone)
1-407-251-5126 (Fax)

HOME PAGE: http://www.hospitality.ucf.edu/thara.aspx

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