Importance of Agro-food Industry for Small and Medium-sized Towns in EU Countries; An Inter-regional SAM Analysis

This paper examines the importance of the agro-food industry for the local economy of thirty selected small and medium-sized towns in the EU. Calculations are based on interregional SAM analysis, which were constructed for each town. On the whole, it can be said that the higher the degree of integration of the agro-food sector in the local economy, the larger its role for the rural town and its hinterland. In addition, the SAM analyses show the impact of a demand change in the agro-food sector located in one zone of the town on the other zone of the town. It helps policy makers to understand the economic and social strengths and weaknesses of the agro-food industry in their towns.