Estimating the direct and indirect impact of residential and recreational functions on rural areas: An application to five small areas of France

Abstract

It is shown that the growth in employment due to the development of residential and recreational functions in five rural areas of France only partly offsets the decline in agricultural and industrial employment. The direct and indirect effects of residential and recreational functions are evaluated by an extension of Keynesian theory: economic base theory. Different techniques (surveys, minimum requirements method) provide estimates of the direct effects. The study reveals marked inter-regional and inter-sectoral differences in multiplier effects. Important caveats related to the methodological assumptions and data are expressed.