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A Method for Evaluating the Economic Contribution of a Local Food System

Author

Listed:
  • Watson, Philip
  • Cooke, Stephen
  • Kay, David
  • Alward, Greg
  • Morales, Alfonso
Abstract
Despite growing interest in local food, modeling the economic contribution of this endogenous system is inherently problematic. We present a combined hypothetical extraction and import-substitution social accounting matrix model that overcomes these problems in a theoretically consistent and computationally feasible manner. The method can be applied broadly to many different definitions of a “local food system” and uses the same underlying method as traditional economic-base contribution models. We apply this model to the state of Idaho and compare the economic contribution of the local food system against the economic contribution of the export food system.

Suggested Citation

  • Watson, Philip & Cooke, Stephen & Kay, David & Alward, Greg & Morales, Alfonso, 2017. "A Method for Evaluating the Economic Contribution of a Local Food System," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 42(2), May.
    • Handle: RePEc:ags:jlaare:257997
    DOI: 10.22004/ag.econ.257997
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    References listed on IDEAS

    as
    1. Cooke, Stephen C. & Watson, Philip, 2011. "A Comparison of Regional Export Enhancement and Import Substitution Economic Development Strategies," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 41(1), pages 1-15.
    2. Hughes, David W. & Brown, Cheryl & Miller, Stacy & McConnell, Tom, 2008. "Evaluating the Economic Impact of Farmers' Markets Using an Opportunity Cost Framework," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 40(1), pages 253-265, April.
    3. Watson, Philip & Wilson, Joshua & Thilmany, Dawn D. & Winter, Susan, 2007. "Determining Economic Contributions and Impacts: What is the difference and why do we care?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 37(2), pages 1-7.
    4. Joseph Persky & David Ranney & Wim Wiewel, 1993. "Import Substitution and Local Economic Development," Economic Development Quarterly, , vol. 7(1), pages 18-29, February.
    5. Miller, Steven R. & Mann, John & Barry, Judith & Kalchik, Tom & Pirog, Rich & Hamm, Michael W., 2015. "A Replicable Model For Valuing Local Food Systems," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 47(4), pages 441-461, November.
    6. David L. Kay & James E. Pratt & Mildred E. Warner, 2007. "Role of Services in Regional Economy Growth," Growth and Change, Wiley Blackwell, vol. 38(3), pages 419-442, September.
    7. Low, Sarah A. & Vogel, Stephen J., 2011. "Direct and Intermediated Marketing of Local Foods in the United States," Economic Research Report 118025, United States Department of Agriculture, Economic Research Service.
    8. repec:ags:jrapmc:133140 is not listed on IDEAS
    9. Thilmany, Dawn D. & Watson, Philip, 2004. "The Increasing Role Of Direct Marketing And Farmers Markets For Western Us Producers," Western Economics Forum, Western Agricultural Economics Association, vol. 3(2), pages 1-7, December.
    10. Waters, Edward C. & Weber, Bruce A. & Holland, David W., 1999. "The Role Of Agriculture In Oregon'S Economic Base: Findings From A Social Accounting Matrix," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 24(1), pages 1-15, July.
    11. Jason Winfree & Philip Watson, 2017. "The Welfare Economics of “Buy Local”," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 99(4), pages 971-987.
    12. Low, Sarah A. & Vogel, Stephen J., 2011. "Local Foods Marketing Channels Encompass a Wide Range of Producers," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-5.
    13. Henneberry, Shida Rastegari & Whitacre, Brian E. & Agustini, Haerani N., 2009. "An Evaluation of the Economic Impacts of Oklahoma Farmers Markets," Journal of Food Distribution Research, Food Distribution Research Society, vol. 40(3), pages 1-15, November.
    14. repec:cup:jagaec:v:40:y:2008:i:1:p:253-265_5 is not listed on IDEAS
    15. Low, Sarah A. & Adalja, Aaron & Beaulieu, Elizabeth & Key, Nigel & Martinez, Stephen & Melton, Alex & Perez, Agnes & Ralston, Katherine & Stewart, Hayden & Suttles, Shellye & Vogel, Stephen & Jablonsk, 2015. "Trends in U.S. Local and Regional Food Systems: Report to Congress," Administrative Publications 292107, United States Department of Agriculture, Economic Research Service.
    16. Watson, Philip & Cooke, Stephen & Kay, David & Alward, Greg, 2015. "A Method for Improving Economic Contribution Studies for Regional Analysis," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 45(1).
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Zsófia Benedek & Imre Fertő & Viktória Szente, 2020. "The Multiplier Effects of Food Relocalization: A Systematic Review," Sustainability, MDPI, vol. 12(9), pages 1-18, April.
    2. Maureen Stickel & Steven Deller, 2020. "Local Foods and Local Economic Performance," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 42(2), pages 335-357, June.
    3. Felix Haifeng Liao & Brendan Gordon & Colette DePhelps & Darin Saul & Chao Fan & Wenlong Feng, 2019. "A Land-Based and Spatial Assessment of Local Food Capacity in Northern Idaho, USA," Land, MDPI, vol. 8(8), pages 1-13, August.
    4. Susan (Sixue) Jia, 2021. "Local Food Campaign in a Globalization Context: A Systematic Review," Sustainability, MDPI, vol. 13(13), pages 1-11, July.

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