The purpose of this research has been to examine the effect of agriculture on regional economic activity. This has traditionally been done as a part of an overall study concerning the effect of structural changes in agriculture across a regional economy. This is a vital aspect because it highlights the importance of agriculture to the regional economy as a whole. Regional growth and development depend a great deal on the state of the agricultural economy. This is because agriculture supports regional businesses and consumers.

There are several theories which support the idea of linking regional economies through agriculture. One such theory is that the structure of an economy is determined by the dynamics of its neighboring regions. Another theory is that the state of an economy depends largely on the economy of its neighbors. Yet another model is that the state of an economy is determined by forces within the region itself.

The current study seeks to address the first two theories mentioned above. Its aim is to understand the relationship between the strength of regional businesses and the output-output of that economy. The strength of regional businesses is then determined by the extent and type of inputs it receives, the extent to which its business cycle is deregulated and the level of investment in agriculture.

A recent study by Oxford Martin School of Business and the Centre for European Economic Policy Research, University of Paris, France, looked at the economic impact of the various inputs used in the food processing industries in seven EU countries. Input-output data for the industries was taken from the Annual Survey of Economic Growth (ASEG), which is based on data from the European Commission’s statistical database. It showed that the largest companies in the region had strong regionalised input-output links.

The largest companies were found to have strong links to the food processing sector. The highest level of regional economic activity (employment) took place in the services industry. By analysing the links between these three industry sectors, the researchers were able to determine the importance of each sector for the overall regional economy. They found that there was a considerable variation within the UK. The top industries producing the highest level of employment included chemical and pharmaceutical manufacturing, petroleum and coal, and food processing, and allied and decorative industry sectors.

From this information, it can be concluded that the agricultural sector was the most important driver of regional economic activity. As the picture is taken into account, the researchers made several inferences about the size and strength of the UK economy. It is shown that, if the analysis had been restricted to the total income of each sector, the regional differences in per capita GDP would have lessened considerably. In addition, the researchers found that the largest firms depended most heavily on the activities of their regional market. The analysis thus suggests that the size of the firms and the concentration of their activities in one area tend to affect GDP growth, and hence regional differences.

The researchers also examined the economic impact on regional economies of political, social and economic variables. They found that political stability was the strongest determinant of economic activity and per capita GDP growth in the regions. The same analysis could be applied to differences in employment levels and hours worked by males and females, and the effect of inflation and other economic variables on regional GDP growth.

Regional economic activity has obvious links with agricultural land. Most of the world’s food is grown on agricultural land, which accounts for around 80 % of the world’s food supply. Regional differences in agricultural land use also led to regional differences in regional food production. For example, in the UK, rural areas are extensively used for farming, whereas in the USA and Australia, agricultural land is heavily used for intensive animal production, such as livestock. These regional differences imply major influences on food prices, allowing researchers to speculate on the likely impact on the prices of the widely traded regional currencies.