An input-output approach in assessing the impact of extensive versus intensive farming systems on rural development: the case of Greece

This paper analyses the role of the extensive versus the intensive farming systems on rural development and specifically in a Greek rural area Trikala. The Generation of Regional Input Output Tables (GRIT) technique is applied for the estimation of the socio-economic impact of the farming systems through the estimation of an input-output (I/O) table. This is followed by an agriculture-centred multiplier analysis. The results suggest that intensive crops create stronger backward linkages from extensive ones. Almost all farming systems appear to have rather low Type 1 and Type 2 income and employment multipliers. Amongst them extensive crops seem to have the greatest due to high direct income and employment effects they create. Finally, the paper assesses the impact of the shift of land resources from intensive to extensive farming systems, due to the Mid-term Review of CAP, by exogenizing the output of the agricultural farming systems. The results of the above analysis indicate a reduction in the sectoral output of the region’s economy.