<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper investigates the economic effects of the food import ban that Russia imposed vis-à-vis the European Union in 2014 on the development of two structurally different rural regions in Finland. A detailed, rural-urban dataset was compiled for use with a recursive dynamic computable general equilibrium model. In the medium run, the overall economic effects of the trade ban were negative for both regions, and the value added of agriculture and food industries fell notably. When the rigidities of capital availability were relaxed, regional GDP and employment increased in South Ostrobothnia as, for instance, metal industry and construction accelerated economic growth. In North Karelia, where agriculture and food industry account for a minor share of economy, other industries could not compensate the losses the ban caused. Accordingly, the impacts were dependent on the economic structure of the region.</p></abstract>

This paper investigates the economic effects of the food import ban that Russia imposed vis-à-vis the European Union in 2014 on the development of two structurally different rural regions in Finland. A detailed, rural-urban dataset was compiled for use with a recursive dynamic computable general equilibrium model. In the medium run, the overall economic effects of the trade ban were negative for both regions, and the value added of agriculture and food industries fell notably. When the rigidities of capital availability were relaxed, regional GDP and employment increased in South Ostrobothnia as, for instance, metal industry and construction accelerated economic growth. In North Karelia, where agriculture and food industry account for a minor share of economy, other industries could not compensate the losses the ban caused. Accordingly, the impacts were dependent on the economic structure of the region.

Russian Food Import Ban – Impacts on Rural and Regional Development in Finland

European Countryside

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

This paper investigates the economic effects of the food import ban that Russia imposed vis-à-vis the European Union in 2014 on the development of two...

Russian Food Import Ban – Impacts on Rural and Regional Development in Finland

Pubblicato online: 31 dic 2020

Pagine: 506 - 526

Ricevuto: 05 mag 2020

Accettato: 05 ago 2020

DOI: https://doi.org/10.2478/euco-2020-0027

Parole chiave
regional general equilibrium, rural development, agriculture, food industry, trade

© 2020 Nina Hyytiä, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Russian Food Import Ban – Impacts on Rural and Regional Development in Finland

Pubblicato online: 31 dic 2020

Pagine: 506 - 526

Ricevuto: 05 mag 2020

Accettato: 05 ago 2020

DOI: https://doi.org/10.2478/euco-2020-0027

Parole chiaveregional general equilibrium, rural development, agriculture, food industry, trade

© 2020 Nina Hyytiä, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Parole chiave
regional general equilibrium, rural development, agriculture, food industry, trade