Who Replaces Agriculture's Contribution to Settlement in Lagging Rural Areas? An Integrated Input-Output and Dynamic Simulation Analysis

This paper develops an integrated model for analysing regional economic development and structural change in agriculture. The input-output method allows the detailed description of a regional economy. Based on this description, regional growth pole sectors can be identified that are potential leverage points for growth oriented development strategies. Dynamic simulation tests the long term effects of such a development strategy. Model results show that external demand is the main driving force behind regional economic growth. However, development strategies for lagging rural areas have to be coupled to development strategies for regional centres. Only if the rural areas surrounding regional centres become an important asset for the development of these centres can rural areas be stabilised.