Abstract: | The purpose of this paper is to analyse the role of forestry in the rural economy of Scotland. The Generation of Regional Input-Output Tables (GRIT) technique is applied to the estimation of input-output tables for rural Scotland. This is followed by a forestry-centred multiplier analysis. The results suggest that the forestry planting and harvesting sectors offer great potential for improving economic activity. However, their backward linkages with other rural industries seem to be limited. On the other hand, the backward linkages of wood-processing industries with the rest of the economy are strong. From this analysis, it is concluded that the joint development of forestry and wood-processing industries would promote economic development in rural Scotland. |