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Measuring the Indirect Effects of an Agricultural Investment Project on Its Surrounding Region
Author(s) -
Bell C. L. G.,
Hazell P. B. R.
Publication year - 1980
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1239474
Subject(s) - nonfarm payrolls , downstream (manufacturing) , liberian dollar , investment (military) , agriculture , economics , natural resource economics , business , agricultural economics , finance , geography , operations management , archaeology , politics , political science , law
Agricultural investment projects may generate important downstream benefits for the regions in which they are located. Using a semi‐input‐output model of the regional economy, an attempt is made to quantify the downstream benefits generated by an irrigation project in Malaysia. In aggregate the project's downstream effects on regional income were of an order similar to its direct effects, but the main beneficiaries of the downstream benefits were the nonfarm households. Each dollar of downstream income probably was supported by just over a dollar of additional investment in the local economy.