Rural-urban interdependencies: Analysis using an inter-regional SAM model

An inter-regional SAM-based model is used to analyse the nature of interdependencies within and between rural and urban areas in Grampian, North East Scotland. Through multiplier decomposition, the relative importance of inter-and intra-regional linkages is investigated. The results suggest that the magnitude of inter-regional feedback effects between the rural and urban al eas is small, with both areas 'leaking' benefits from ina eased industrial activity to the rest of the world. However, attention is drawn to the reliance of urban industries an rural households for the provision of factor services as well as a source of final demand. The results suggest the need to broaden analysis of rural economies beyond production-related linkages.